Vardhman Special Steels Limited

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@vardhman.com Ref. VSSL:SCY:NOV:2023-24 BSE Limited New Trading Ring, Rotunda Building, P.J. Towers, DalaI Street, MUMBAI-4ooo01 Scrip Code: 534392 Dated: o7.r1.2023 The National Stock Exchange of In

10%

nd Managing Director said – “During the first half of this financial year our revenue declined by ~10% and EBITDA by ~27% YoY. This is mainly due to price reductions from OEMs, lower volumes and higher

27%

r said – “During the first half of this financial year our revenue declined by ~10% and EBITDA by ~27% YoY. This is mainly due to price reductions from OEMs, lower volumes and higher other expenses. Mor

Rs. 160 crore

e refractory lining of the reheating furnace. On capacity expansion, the Board approved a CapEx of Rs. 160 crores. This investment is directed towards increasing the capacity of our rolling mill, which is a strat

3.78%

4.21 25.01 6.44 18.57 2.29     Q2 FY24 volumes stood at 49,034 tonnes, YoY decline of 3.78% 6.31% YoY decrease in Revenue from Operations, mainly on account of price reduction from OEMs and

6.31%

25.01 6.44 18.57 2.29     Q2 FY24 volumes stood at 49,034 tonnes, YoY decline of 3.78% 6.31% YoY decrease in Revenue from Operations, mainly on account of price reduction from OEMs and lower v

Rs. 7,494

e reduction from OEMs and lower volumes EBITDA (including other income) per ton for this quarter – Rs. 7,494 Decrease in EBITDA mainly due to decrease in revenue, increase in other expenses (spares & store con

Rs 9.41 crore

Apart income was higher in Q2 FY23 as compared to Q2 FY24 due to booking of GST refund amounting to Rs 9.41 crores for the period Sep’19 to Mar’20 & FY22 *Issued Bonus shares in the ratio 1:1, EPS has been adjust

27.27%

3 44.25 87.43 105.56 831.77 100.67 13.95 8.53 78.19 19.88 58.31 7.19 Y-o-Y % (9.62)% (27.27%) (36.31%) (36.49%) (36.58%)      Volumes for H1 FY24 stood at 96,469 tonnes – YoY dec

36.31%

87.43 105.56 831.77 100.67 13.95 8.53 78.19 19.88 58.31 7.19 Y-o-Y % (9.62)% (27.27%) (36.31%) (36.49%) (36.58%)      Volumes for H1 FY24 stood at 96,469 tonnes – YoY decline of 6.

36.49%

.56 831.77 100.67 13.95 8.53 78.19 19.88 58.31 7.19 Y-o-Y % (9.62)% (27.27%) (36.31%) (36.49%) (36.58%)      Volumes for H1 FY24 stood at 96,469 tonnes – YoY decline of 6.54% Decli

36.58%

7 100.67 13.95 8.53 78.19 19.88 58.31 7.19 Y-o-Y % (9.62)% (27.27%) (36.31%) (36.49%) (36.58%)      Volumes for H1 FY24 stood at 96,469 tonnes – YoY decline of 6.54% Decline in Reve

“This will be unique facility on such large area for benefit of environment and society at large.”

“All this will be done with total capital outlay of over Rs.”

Acceptance Criteria

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Environment

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Social

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Employee well being

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Governance

1

Investor Relations Advisors

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Acceptance Criteria

0.2x10mm Straightening Straightness : 2mm / meter Shot Blasting UST Acceptance Criteria: SDH - 0.8x10mm, FBH - 0.8 & 1.2mm 22 Best in class R&D Facility    Spectrometer : ARL 4460:1454 for Chemical Analysis. Can check 32 different elements CS - 230 : Analyzer for Carbon & Sulfur content in steel LECO gas analyzer – TC 600 H2, N2, O2 Analyzer  Mobile Spectro and XRF for Mix up Testing of Bars  Mechanical and Metallurgical Testing Lab   Rockwell Hardness Tester Impact Testing Machine (Material Toughness)  Metallurgical Microscope with Image Analyzer  Carl Zeis microscope with maximum magnification of 1000x  Olympus microscope with maximum magnification of 2000x  RADLAB-1 GAMMA RAY Spectrometer    For Testing Steel Samples for Radiological Content Can identify different types of Isotopes present in Steel Sample and show Results in Bq/gm Samples Radiological content can be certified with 300 Second scan in RadLab ''Well‘’  XRF Spectrometer - Higher range & All input/ output

Environment

  Making steel through Electric Arc Furnace route which is significantly more environment friendly than Blast Furnace route. Most of our Committed towards cleaner, greener and healthier environment by implementing stringent standards & policies for Environment in our unit  competitors are making steel through Blast Furnace route In 2015, installed Secondary Fume Extraction system with investment of Rs. 12 crores, to capture dust going into air. Its annual operational cost is approximately Rs. 5 crores  On our journey of expanding production capacity from existing 2 lac TPA to 2.80 lac TPA, we are also leaping step forward in tightening our norms towards environment protection. These include development of Greenbelt of over 33% existing land area, emissions below 30 ppm against 150 ppm followed by most of our competitors, zero liquid discharge and reduction of substantial water extraction even after expansion. Apart from this, we are developing forest on 5 acres of land owned by Var

Social

  We have made several contributions towards: Support principles of inclusive growth and equitable development through CSR initiatives for sustainable development in core business activities (i) Preventive & Promoting Healthcare and Sanitation (ii)Towards Environment sustainability (iii) For Promoting Education (iv) Towards Women Empowerment (v)Towards socially and economically backward groups 33 ESG Initiatives  Have In-house oxygen generation plants for our captive consumption. During Covid time, we had served society by supplying oxygen cylinders.  During 2nd wave of Covid, we have been able to serve for 50% requirement of oxygen of Ludhiana city

Employee well being

 We hadn’t laid off anyone during Covid time, rather we had paid full salaries to our employees and ensured full payment to our contract workers. Apart from this, we had given timely increments, production incentives and above all distributed one time incentive for hard work done by entire team during tough times of Covid  In current year, we had developed well-equipped Health Fitness Centre in campus managed by professional trainer  We have launched 3 welfare policies in current year:  Chalo Ghar Bhi Banaye (Housing loan scheme)  Main Hoon Naa (Taking care of education of children on unfortunate demise of our employee till graduation irrespective of any College/University)  Vidwaan Bano (Scholarship of Rs. 50,000/- to outstanding children of our employees)  We are having strong Women Grievance handling mechanism in place  We have various unique facilities and schemes for benefit of employees such as single roof canteen serving same food from Worker to MD  Two full time Doctor

Governance

 M/S B S R & Co LLP, affiliate of KPMG, Chartered Accountants are our Statutory Auditors.  We are led by strong Board consisting of 11 members out of which 6 are independent directors. Chairperson is non-executive independent  director. Our Board includes two women directors, out of which one is independent director. Aichi Steel Corporation Japan, main steel supplier to Toyota Group had selected us as their partner and entered strategic alliance in 2019 along with equity participation in VSSL and have seat on the Board 34 Thank You 534392 VSSL VSSL IN VARM.BO For further information, please contact:

Investor Relations Advisors

Vardhman Special Steels Limited Adfactors PR Pvt. Ltd. Mr. Sanjeev Singla sanjeevsingla@vardhman.com www.vardhmansteel.com Mr. Amit Sharma +91 9867726686 amit.sharma@adfactorspr.com Ms. Disha Shah +91 9699060134 disha.shah@adfactorspr.com www.adfactorspr.com 35