Vesuvius India Ltd:Annual Report 2023-24 Analysis

Vesuvius India Ltd.: A Comprehensive Overview #

About the Company #

Vesuvius India Ltd. is a leading company specializing in providing engineering solutions and services to the steel and foundry industries.

Year of Establishment and Founding History:

• Established in 1991

Headquarters Location and Global Presence:

• Headquartered in Kolkata, India.
• Part of the Vesuvius Group, a global leader with a presence in over 40 countries.

Company Vision and Mission:

• To be the world leader in delivering innovative solutions to our customers in the steel and foundry industries that improve their efficiency and performance.

Key Milestones in Their Growth Journey:

• Expansion of product portfolio to cater to various segments within the steel and foundry industries.
• Increased focus on R&D and technological innovation.
• Strengthened partnerships with key customers.

Stock Exchange Listing Details and Market Capitalization:

• Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
• Market Capitalization: (Please check current market data for the most up-to-date information as this fluctuates).

Recent Financial Performance Highlights:

• (Please refer to Vesuvius India Ltd.’s latest annual reports and investor presentations for up-to-date financial performance details. Focus on key metrics like revenue growth, profitability, and earnings per share.)

Management Team and Leadership Structure:

• (Information about key personnel can usually be found on the company’s website in the “About Us” or “Investor Relations” section.)

Their Products #

Vesuvius India provides a comprehensive range of products and services for the steel and foundry industries.

Complete Product Portfolio with Categories:

• Crucibles: Silicon Carbide Crucibles, Clay Graphite Crucibles, and Insulated Crucibles.
• Foundry Coatings: Water Based Coatings, Alcohol Based Coatings, Zircon Based Coatings, Graphite Based Coatings, and Refractory Coatings.
• Binders: Sodium Silicate Binder, Resin Binder, and Core Oil Binder.
• Fluxes & Slag Treatment: Covering Fluxes, Refining Fluxes, and Deslagging Fluxes.
• Nozzles: Used in steelmaking processes for controlling the flow of molten steel.
• Other Refractory Products: including ceramic filters, and other specialized products.

Flagship or Signature Product Lines:

• (Vesuvius Group’s leadership in flow control within steelmaking would suggest their nozzles and related systems are a core offering.)

Key Technological Innovations or Patents:

• Innovations in crucible design for improved thermal conductivity and durability.
• Advanced coating formulations for enhanced casting quality and reduced defects.
• Development of environmentally friendly binder systems.

Manufacturing Facilities and Production Capacity:

• Vesuvius India has multiple manufacturing facilities across India.
• (Specific production capacity figures are usually proprietary information.)

Quality Certifications and Standards:

• ISO 9001:2015

Any Unique Selling Propositions or Technological Advantages:

• Strong R&D focus leading to innovative and customized solutions.
• Global expertise and technology transfer from Vesuvius Group.
• Comprehensive product portfolio catering to diverse needs of the steel and foundry industries.

Recent Product Launches or R&D Initiatives:

• (Check Vesuvius India’s official website or press releases for announcements on recent product launches and R&D projects.)

Primary Customers #

Target Industries and Sectors:

• Steel Industry
• Foundry Industry

Geographic Markets (Domestic vs. International):

• Primarily focused on the Indian domestic market.
• Exports to other regions within the Vesuvius Group network.

Major Client Segments (agricultural, industrial, residential, etc.):

• Industrial

Distribution Network and Sales Channels:

• Direct sales force.
• Distributor network.

Major Competitors #

Direct Competitors in India and Globally:

• (Identifying specific market share percentages can be difficult without access to proprietary industry reports. Some key competitors may include:)
  • Saint-Gobain
  • Morgan Advanced Materials
  • Other local refractory manufacturers in India

Competitive Advantages and Disadvantages:

• Advantages: Part of a global leader, Vesuvius Group, access to global technology and expertise, strong brand reputation.
• Disadvantages: Can face pricing pressure from smaller, local competitors.

How they differentiate from competitors:

• Technological leadership and innovation.
• High-quality products and services.
• Global expertise and technical support.

Future Outlook #

Expansion Plans or Growth Strategy:

• Focus on expanding market share in existing product segments.
• Investments in new technologies and product development.

Sustainability Initiatives or ESG Commitments:

• (Details on sustainability initiatives and ESG commitments would be available in the company’s annual reports or on their website.)

Industry Trends Affecting Their Business:

• Growth in the steel and foundry industries.
• Increasing demand for high-quality refractory products.
• Adoption of advanced manufacturing technologies.

Long-Term Vision and Strategic Goals:

• (The long-term vision and strategic goals are typically outlined in the company’s annual reports and investor presentations. It would generally involve maintaining market leadership, driving innovation, and delivering sustainable growth.)

Vesuvius India Limited - Financial Analysis (FY 2024) #

Comprehensive Performance Overview #

3-Year Trend Analysis (FY24 vs FY23) #

• Revenue: Increased by 16.6% YoY to ₹1,869 Cr in FY24 from ₹1,603 Cr in FY23. This growth significantly outpaced the underlying domestic crude steel production growth (6.3%), indicating market share gains, favorable product/customer mix, or improved pricing realization.
• Profitability: PBIDT grew 23.0% YoY to ₹396 Cr, and PAT increased 24.2% YoY to ₹265 Cr. Operating Profit Margin improved to 18.73% (FY24) from 17.83% (FY23), and Net Profit Margin improved to 14.16% (FY24) from 13.28% (FY23).
• Shareholder Returns: EPS rose 24.2% YoY to ₹130.33. Proposed Dividend Per Share (DPS) increased 13.7% YoY to ₹14.50. Return on Net Worth (RoNW) improved to 24.46% in FY24 from 23.95% in FY23.
• Financial Health: Net Worth increased by 19.9% YoY to ₹1,431 Cr. The Debt-Equity ratio remained negligible at 0.01. Current Ratio was stable at 3.12. Debtor turnover improved, while inventory turnover slightly decreased. The interest coverage ratio decreased but remains exceptionally high (297 vs 665), reflecting minimal debt. Net cash inflow from operating activities grew substantially compared to FY23.

Business Segment Performance #

• The Company operates primarily as a single segment: manufacturing, trading, and servicing refractory goods for high-temperature industries (Steel, Cement, Aluminium, Foundry, etc.).
• Performance is heavily influenced by the domestic steel industry, which consumes ~70% of refractory products in India.
• Revenue is predominantly domestic (97% in FY24), with exports contributing 3.1%. Key customers include major steel producers (e.g., Tata Steel, SAIL, JSW, JNIL).
• Growth is intrinsically linked to capital expenditure and capacity utilization within the Indian steel, cement, and non-ferrous metals sectors.

Major Strategic Initiatives & Progress #

• Innovation & Technology Leadership: Launched several new products/technologies (Sigma 2SL, Supermag, ATOM, Supergard OBL, ANTERIS 360, BASILITE QuickStart, DuraPlate, DuraSleeve, OptiClean+ Purge Plug). Commissioned India’s first Robotic Tube Changer at Tata Steel Kalinganagar. Localized production of key products (Sigma 2SL).
• Capacity Expansion: Commissioned new Mould Flux, AlSi Monolithic, and Basic Monolithic plants in Visakhapatnam, adding significant capacity (250,000 tonnes annually) and aligning with the ‘Make in India’ initiative. Ongoing upgrades at existing plants.
• Operational & Customer Excellence: Supported key customer milestones (Tata Steel H Blast Furnace 50MT, JNIL EAF life extension, Tata KPO/JVML blast furnace commissioning). Implemented advanced solutions like BOF Gunning Shooter (SAIL-RSP) and achieved record performance (40 heats) with refractory systems at JSOL.
• Safety Excellence: Maintained Zero LTI in FY24. Implemented VR-based safety training and conducted multiple safety campaigns across various risk areas (Hand, Material Handling, LOTO, Fire, Road, Machine, Slips/Trips/Falls, PPE).

Risk Landscape Changes #

• Key Risks: Continued volatility in raw material prices and availability (geopolitical/supply chain disruptions); competition from imports; cyclicality of end-user industries (steel, cement); cyber security threats; ESG-related risks.
• Mitigation: Strategic sourcing, localisation efforts, inventory management, focus on high-performance/differentiated products, cost efficiency programs, strong customer relationships, robust internal controls, Speak Up policy, and enhanced cyber security measures. Auditors noted areas for improvement in IT controls (daily backup location, database audit trails) but found internal financial controls over reporting adequate.
• Risk Management Framework: Formal policy reviewed by Risk Management Committee, Audit Committee, and Board. Continuous identification, assessment, mitigation, and monitoring process in place.

ESG Initiatives & Metrics #

• Environmental: Achieved 100% renewable electricity consumption (1,589 MWh solar generation + REC offsets). Progress on Zero Liquid Discharge (ZLD) goals (Mehsana achieved). Focus on waste reduction/recycling and sustainable packaging (reusable steel boxes). Product innovation targets reduction in customer carbon footprint.

Detailed Analysis #

Financial Analysis of Vesuvius India Limited (FY 2024) #

Balance Sheet Analysis #

This analysis is based on the financial years ending December 31, 2024, and December 31, 2023.

Comparative Analysis (Assets, Liabilities, Equity) #

Significant Line Item Changes (>10% YoY) #

Vesuvius India Limited - FY2024 Financial Analysis: Operating Performance #

Revenue Analysis #

Overall Performance #

Revenue from Operations increased by 16.56% year-on-year (YoY), reaching INR 186,857 Lakhs in FY2024 compared to INR 160,313 Lakhs in FY2023.

Financial Analysis: Vesuvius India Limited (FYE 2024) #

Cash Flow Analysis #

• Operating Cash Flow (OCF): Increased to ₹25,669 Lakhs in FY2024 from ₹8,920 Lakhs in FY2023, driven by higher Profit Before Tax (₹34,884 Lakhs vs ₹28,540 Lakhs) and effective working capital management. Adjustments included depreciation (₹4,461 Lakhs) and interest income received (₹2,414 Lakhs).
• Investing Cash Flow (ICF): Increased to ₹23,266 Lakhs in FY2024 from ₹3,010 Lakhs in FY2023, dominated by higher payments for PPE acquisition amounting to ₹23,266 Lakhs (FY23: ₹12,814 Lakhs). Other activities included proceeds from PPE disposal (₹1,651 Lakhs), interest received (₹2,414 Lakhs), and net investment in fixed deposits (₹1,918 Lakhs outflow).
• Financing Cash Flow (FCF): Increased slightly to ₹2,756 Lakhs in FY2024 from ₹1,822 Lakhs in FY2023, driven by dividend payments (₹2,588 Lakhs vs ₹1,674 Lakhs).
• Free Cash Flow (FCF):
  • FCF (2024) = ₹25,669 Lakhs - ₹23,266 Lakhs = ₹2,403 Lakhs
  • FCF (2023) = ₹8,920 Lakhs - ₹12,814 Lakhs = -₹3,894 Lakhs Indicates operating cash generation in FY2024 was sufficient to cover capital expenditures.

Working Capital Management Efficiency #

• Debtors Turnover: Improved to 69.20 days in FY2024 from 60.62 days in FY2023.
• Inventory Turnover: Slightly increased to 49.09 days in FY2024 from 52.38 days in FY2023.
• Trade Payables Turnover: Improved to 104 days in FY2024 from 118 days in FY2023.
• Cash Conversion Cycle (CCC):
  • CCC (2024) = 69.20 + 49.09 - 104 = 14.29 days
  • CCC (2023) = 60.62 + 52.38 - 118 = -5.00 days Shifted from negative to positive, primarily due to faster supplier payments.

Capex Analysis #

• Total payments for PPE acquisition increased to ₹23,266 Lakhs in FY2024 (FY23: ₹12,814 Lakhs).
• Capital Work-in-Progress (CWIP) surged from ₹8,642 Lakhs to ₹19,567 Lakhs.
• Major projects include new Mould Flux, AlSi, and Basic Monolithic manufacturing plants at the Visakha Industrial Complex, and expansions at Kolkata and Visakhapatnam facilities.

Dividend and Shareholder Returns #

• Dividend: Recommended dividend of ₹14.50 per share for FY2024 (₹12.75 in FY2023). Total proposed outflow is ₹2,943 Lakhs. Payout ratio of approximately 11.1% of PAT.
• Share Split: A 10-for-1 equity share split proposed.

Debt Service Coverage #

• Low leverage. Total debt primarily consists of Lease Liabilities amounting to ₹1,558 Lakhs as of Dec 31, 2024.

Financial Ratio Analysis of Vesuvius India Limited (FY 2024) #

Profitability Ratios #

Return on Net Worth (ROE) #

• FY 2024: 24.46%
• FY 2023: 23.95%
• Trend: ROE improved slightly in FY 2024 compared to FY 2023, indicating better returns generated on shareholders’ equity.

Operating Profit Margin #

• FY 2024: 18.73%
• FY 2023: 17.83%
• Trend: Operating margin increased in FY 2024, suggesting improved operational efficiency or better pricing power relative to costs.

Net Profit Margin #

• FY 2024: 14.16%
• FY 2023: 13.28%
• Trend: Net profit margin improved in FY 2024, reflecting the higher operating margin.

Vesuvius India Limited - FY2024 Financial Analysis #

Revenue and Profitability Metrics #

• Revenue Growth: Revenue from Operations increased by 16.6% to ₹1,869 Crores in FY2024, compared to ₹1,603 Crores in FY2023. Total Income grew to ₹1,918 Crores from ₹1,637 Crores.
• Profitability:
  • Profit Before Interest, Depreciation, and Tax (PBIDT) rose 23.0% to ₹396 Crores.
  • Profit Before Tax (PBT) increased by 22.2% to ₹349 Crores.
  • Profit After Tax (PAT) grew by 24.2% to ₹265 Crores.
• Margins:
  • Operating Profit Margin improved to 18.73% in FY24 from 17.83% in FY23.
  • Net Profit Margin improved to 14.16% in FY24 from 13.28% in FY23.
• Earnings Per Share (EPS): Basic and Diluted EPS increased by 24.2% to ₹130.33.
• Drivers: Performance attributed to strong market growth, market share gains, improved realisations from customer/product mix, and enhanced cost efficiencies.

Market Share and Competitive Position #

• Market Position: The company identifies itself as a leader in molten metal flow engineering and technology in India, serving high-temperature industries like steel, cement, aluminium, and foundry. It leverages the global expertise and R&D capabilities of its parent, Vesuvius Group plc.
• Competitive Advantages: Stated strengths include innovation-driven solutions, robust infrastructure (5 manufacturing facilities), strategic capacity expansion, strong customer relationships, and a focus on safety and technology leadership (automation, digitalisation).
• Industry Context: The steel industry accounts for 70% of refractory consumption in India. The company is strategically positioned to benefit from India’s steel capacity expansion (targeting 300 MT by 2030-31) and infrastructure focus (PM Gati-Shakti, ‘Make in India’).

Key Products/Services Performance #

• Core Offerings: Supplies consumable ceramic products, systems, and robotics for continuous casting; high-performance refractory products; foundry solutions.
• Revenue Breakdown (FY24): Sale of Manufactured Goods (₹862 Cr), Sale of Trading Goods (₹234 Cr), Sale of Services (₹769 Cr).
• Innovation Highlights (FY24): Launched/highlighted several new products and technologies including Sigma 2SL (Aluminium), Supermag (BOF), ATOM (Steel Quality), Robotic Tube Change system, Supergard OBL (Tundish), ANTERIS 360 (Refractory Profiling), BASILITE QuickStart (Tundish Drying), DuraPlate (Slide Gate), DuraSleeve (Slag-line), OptiClean+ Purge Plug. These innovations aim to improve efficiency, quality, sustainability, and safety for customers.

Geographic Distribution and Market Penetration #

• Primary Market: India. Operations are focused on serving the domestic market, supported by manufacturing facilities in Kolkata, Visakhapatnam, and Mehsana.
• Exports: Contributed 3.1% (₹57 Cr) to total turnover in FY24.
• Domestic Penetration: Strong relationships with major Indian industrial players, particularly in the steel sector (e.g., Tata Steel, SAIL collaborations mentioned). Capacity expansions are explicitly aimed at meeting rising domestic demand.

Segment-wise Capex and ROIC #

• Segment Data: The company reports as a single operating segment (manufacture, trading, sale of refractories and related services). Segment-wise capex/ROIC is not provided.
• Overall Capex: Significant investments focused on capacity expansion, particularly the new Visakhapatnam complex (Mould Flux, AlSi Monolithic, Basic Monolithic plants inaugurated/commissioned in FY24). Capital Work-in-Progress stood at ₹196 Cr at year-end FY24 (up from ₹86 Cr at start). Capital expenditure on energy conservation equipment was ~₹20 Lakhs. R&D expense incurred was ₹937 Lakhs (revenue) and ₹103 Lakhs (capital).
• Return Metrics:
  • Return on Net Worth (RoNW): Improved slightly to 24.46% from 23.95% in FY23.
  • Return on Capital Employed (ROCE): Improved slightly to 24.07% from 23.62% in FY23.

Vesuvius India Limited - Risk Analysis Report #

I. Strategic Risks #

Industry Cyclicality and Market Volatility #

• Severity: High
• Likelihood: Medium to High
• Trend: Stable to Increasing
• Mitigation: Diversification, strong customer relationships, value-added products/services, leveraging global group expertise.
• Control Effectiveness: Partially effective.
• Financial Impact: Potential significant impact on Revenue, Profit Margins, and EPS during downturns.

Competitive Pressure (Imports & Domestic) #

• Severity: Medium to High
• Likelihood: High
• Trend: Increasing
• Mitigation: Technological leadership, product differentiation, customer-centric approach, capacity expansion, cost efficiency focus.
• Control Effectiveness: Appears effective.
• Financial Impact: Pressure on pricing affecting margins, potential loss of market share impacting revenue growth.

Execution of Capacity Expansion & Strategic Investments #

• Severity: Medium
• Likelihood: Medium
• Trend: Increasing
• Mitigation: Phased implementation, board oversight, leveraging group expertise, experienced management team.
• Control Effectiveness: Yet to be fully determined for new projects.
• Financial Impact: Delays can lead to cost overruns and deferred revenue generation.

Failure to Innovate/Maintain Technology Leadership #

• Severity: High
• Likelihood: Low to Medium
• Trend: Stable
• Mitigation: Strong emphasis on R&D, new product launches, leveraging global Vesuvius Group technology, strategic partnerships.
• Control Effectiveness: High.
• Financial Impact: Long-term erosion of market share, pricing power, and profitability if innovation falters.

II. Operational Risks #

Supply Chain Disruptions & Raw Material Volatility #

• Severity: High
• Likelihood: Medium to High
• Trend: Increasing
• Mitigation: Strategic sourcing, inventory optimisation, localisation efforts, strong supplier relationships, leveraging group purchasing power.
• Control Effectiveness: Demonstrated resilience, but vulnerability remains.
• Financial Impact: Increased Cost of Materials Consumed, potential production delays impacting revenue, pressure on margins.

Health, Safety & Environment (HSE) Incidents #

• Severity: High
• Likelihood: Low
• Trend: Decreasing
• Mitigation: Robust safety management system, extensive training, safety campaigns, audits, management accountability.
• Control Effectiveness: High.
• Financial Impact: Potential for significant fines, shutdown costs, compensation, reputational damage.

Product Quality & Performance Failures #

• Severity: High
• Likelihood: Low to Medium
• Trend: Stable
• Mitigation: Quality control processes, R&D investment, advanced manufacturing technologies, customer feedback mechanisms, technical service support.
• Control Effectiveness: Appears effective.
• Financial Impact: Warranty claims, replacement costs, loss of customer trust impacting future revenue, reputational damage.

Cybersecurity & IT System Failure #

• Severity: Medium to High
• Likelihood: Medium
• Trend: Increasing
• Mitigation: Business continuity/disaster management plan, IT infrastructure investments, data protection policies, cybersecurity training/awareness.
• Control Effectiveness: Mixed.
• Financial Impact: Operational disruption, data loss/theft, reputational damage, potential financial losses.

III. Financial Risks #

Margin Pressure from Input Cost Inflation #

• Severity: Medium to High
• Likelihood: High
• Trend: Stable to Increasing
• Mitigation: Pricing discipline, focus on value-added products, operational efficiencies, cost control measures, localisation of raw materials.
• Control Effectiveness: Partially effective.
• Financial Impact: Reduced PBIDT and PAT margins if price increases cannot fully offset cost inflation.

Foreign Exchange Fluctuation #

• Severity: Medium
• Likelihood: High
• Trend: Stable
• Mitigation: Managing bank accounts in foreign currency, potential hedging strategies.

Vesuvius India Limited: Financial Analysis (FY 2024) #

Long-term Strategic Goals and Progress #

Vesuvius India’s strategy focuses on leadership in molten metal flow engineering through technology, capacity expansion, operational excellence, and safety. Priorities include innovation, strategic investments (‘Make in India’), customer-centricity, and safety improvements.

• Innovation: Launched products like Sigma 2SL, Supermag, ATOM, Supergard OBL, ANTERIS 360, BASILITE QuickStart, DuraPlate, and DuraSleeve; commissioned India’s first Robotic Tube Change operation.
• Capacity Expansion: Commissioned new Mould Flux, Alumina-Silica (AlSi), and Basic Monolithic plants in Visakhapatnam (+250,000 tonnes annual capacity planned). Expansions ongoing in Kolkata and Visakhapatnam.
• Financial Performance: Revenue up 16.6% (₹1,869 Cr), PAT up 24.2% (₹265 Cr).
• Sustainability Focus: Reduced carbon footprint (100% renewable electricity), energy efficiency, and water management (ZLD).

Competitive Advantages and Market Positioning #

Vesuvius India is a market leader in the Indian refractory industry, leveraging:

• Global Parentage: Access to Vesuvius plc’s technology and R&D.
• Strong Market Presence: Serving key high-temperature industries (Steel, Cement, Aluminium, Foundry).
• Innovation Leadership: Continuous introduction of value-added products.
• Robust Infrastructure: Five manufacturing facilities across India.
• Customer Relationships: Longstanding partnerships and tailored service.
• Financial Strength: Strong balance sheet and healthy cash flows.
• Operational Excellence: Focus on digitisation and automation.

Innovation Initiatives and R&D Effectiveness #

Innovation focuses on next-generation refractory products, smart manufacturing, and sustainable solutions.

• Product Innovation: Launched new products (Sigma 2SL, Supermag, ATOM, Supergard OBL, BASILITE QuickStart, DuraPlate, Purge Plug OptiClean+, DuraSleeve) for improved performance, efficiency, and sustainability.
• Process Innovation: Commissioned Robotic Tube Change at Tata Steel Kalinganagar; deployed ANTERIS 360 laser profiling; implemented VR training for safety.
• R&D Investment & Focus: R&D expenditure noted (₹103 Lakh capital, ₹937 Lakh expenses at Vizag unit); 60.4% of R&D investment in FY24 targeted environmental/social impact improvements.
• Effectiveness: Demonstrated through product impacts (e.g., ATOM erosion decline, DuraSleeve erosion reduction), automation, and industry recognition.

M&A Strategy and Execution #

• Historical Context: Past acquisitions include KSR International (1999), Foseco Steel Div (2002), Diamant Crucibles (2003), and Carborundum Al-Si plant (2000).
• Current Focus: Emphasis on organic growth through capacity expansion and internal innovation/R&D. No mention of active M&A during the reporting period.

Management’s Track Record in Execution #

Management demonstrated execution capabilities in FY 2024:

• Financial Delivery: Achieved record financial performance (Revenue +16.6%, PAT +24.2%, EPS +24.2%).
• Strategic Project Completion: Commissioned three new manufacturing plants in Visakhapatnam.
• Innovation Rollout: Launched multiple new products and technologies.
• Operational Performance: Achieved operational milestones with key customers.
• Risk Management: Navigated supply chain disruptions and raw material inflation.
• Compliance: Maintained compliance with regulatory requirements.

Capital Allocation Strategy #

Capital allocation prioritized:

• Organic Growth/Capex: Investment in expanding manufacturing capacity (new plants in Visakhapatnam). 4% of Capex was for environmental/social impact improvements.
• Shareholder Returns: Proposed an increased dividend.

Vesuvius India Limited: Financial and Strategic Analysis (FY2024) #

Financial Performance (FY Ended December 31, 2024) #

• Revenue Growth: Revenue from Operations increased by 16.6% YoY to ₹1,869 Crores from ₹1,603 Crores in FY2023, driven by strong market growth, market share gains, improved product/customer mix, and cost efficiencies.
• Profitability Enhancement: PBDIT rose 23.0% YoY to ₹396 Crores. PAT increased significantly by 24.2% YoY to ₹265 Crores. Operating Profit Margin improved to 18.73% (from 17.83% in FY23) and Net Profit Margin improved to 14.16% (from 13.28% in FY23).
• Earnings Per Share (EPS): Basic and Diluted EPS grew by 24.2% YoY to ₹130.33.
• Net Worth & Return: Net Worth increased by 19.9% YoY to ₹1,431 Crores. RoNW improved slightly to 24.46% from 23.95% in FY23. ROCE was 24.07%.
• Dividend: The Board proposed a dividend of ₹14.50 per equity share (Face Value ₹10), a 13.7% increase from the previous year’s ₹12.75 per share. Total dividend outflow is projected at ₹2,943 Lakhs. The record date is May 1, 2025, with payment intended by May 30, 2025.
• Cash Flow: Net cash inflow from operating activities showed substantial growth compared to 2023.
• Key Ratios: Improvements noted in Debtors Turnover and Current Ratio. Debt Equity ratio remained stable at 0.01. Inventory Turnover Ratio slightly decreased.

Strategic Initiatives & Outlook #

• Share Split: A 10:1 stock split (₹10 to ₹1 face value) is proposed via Ordinary Resolution at the AGM to enhance liquidity, affordability, and retail participation. This requires consequential amendments to the MOA and AOA (requiring Special Resolutions).
• Capacity Expansion: Significant investments were made in manufacturing capabilities, aligning with the ‘Make in India’ initiative. A new Mould Flux plant was commissioned, and state-of-the-art Alumina-Silica (AlSi) and Basic Monolithic plants were inaugurated in Visakhapatnam, expected to add 2,50,000 tonnes of annual production capacity to meet rising demand, particularly from the steel sector.
• Innovation & Technology: Continued focus on launching advanced products (e.g., Sigma 2SL, Supermag, ATOM, BASILITE QuickStart, DuraPlate, Supergard OBL) aimed at improving customer efficiency, product quality, and sustainability. Notable implementation includes India’s first Robotic Tube Change operation at Tata Steel Kalinganagar.
• Market Position: The company leverages its leadership in molten metal flow engineering, strong customer relationships (highlighted by milestones with Tata Steel, JNIL, SAIL-RSP), and global expertise from Vesuvius Group plc. Growth strategies target innovation leadership, capacity expansion, operational excellence, and safety.
• Industry Context: The report notes India’s strong economic resilience and growth in steel, cement, and aluminum sectors, driven by infrastructure development (NIP, Gati Shakti) and government initiatives (NSP 2017, PLI Scheme), presenting opportunities for the refractory industry.

Governance and Compliance #

• Board Structure: The Board comprises 9 directors (1 MD, 8 Non-Executive including 3 Independent), meeting SEBI LODR requirements. The Chairperson is an Independent Director. Director profiles and expertise are detailed.
• Committees: Audit, NRC, CSR, SRC, RMC, and BMC are constituted with appropriate composition and meet regularly. All committee recommendations were accepted by the Board.
• Audits & Compliance: Statutory Audit (Price Waterhouse Chartered Accountants LLP): Unqualified

Vesuvius India Limited - Financial Analysis (FYE 2024) #

Financial Performance Overview #

Vesuvius India Limited reported strong financial performance for the year ended December 31, 2024.

• Revenue: Increased by 16.6% to ₹1,869 Crores.
• Profitability:
  • PBIDT grew by 23.0% to ₹396 Crores. PBIDT margin improved to 21.2%.
  • PBT rose by 22.2% to ₹349 Crores.
  • PAT increased by 24.2% to ₹265 Crores. Net Profit Margin improved to 14.2%.
  • Operating Profit Margin improved to 18.73%.
• Shareholder Returns:
  • EPS grew by 24.2% to ₹130.33.
  • DPS increased by 13.7% to ₹14.50.
  • RoNW improved slightly to 24.46%.
• Balance Sheet & Ratios:
  • Net Worth increased by 19.9% to ₹1,431 Crores.
  • Current Ratio: 3.12.
  • Debt-Equity Ratio: 0.01.
  • Debtor turnover: 69.2 days
  • Inventory turnover: 49.1 days.

FY2024 demonstrated growth in revenue and profitability.

Strategic Initiatives and Execution #

Management’s strategy focuses on innovation, capacity expansion, operational/customer excellence, and safety.

• Innovation & Technology Leadership: New products and technologies launched/advanced. Commissioning of India’s first Robotic Tube Change operation at Tata Steel Kalinganagar.
• Capacity Expansion: New Mould Flux, Basic Monolithic, and Alumina-Silica (AlSi) Monolithic plants inaugurated in Visakhapatnam. Capital work-in-progress stands at ₹196 Crores.
• Operational & Customer Excellence: Collaborations and performance milestones with key customers.
• Safety Excellence: Achieved Zero Lost Time Injuries (LTI).

Market Environment and Industry Outlook #

• Macro Environment: Indian economy projected to grow 6.4%-6.7% (FY25-FY27). Government focus on infrastructure.
• Steel Industry: India is the world’s 2nd largest producer. Strong domestic demand. The National Steel Policy targets 300 MT capacity by 2030-31.
• Cement & Aluminium: Both sectors show strong potential.
• Refractory Industry: Growth tied to Steel and Cement expansion. Opportunities in technological advancements. Key threats include raw material price volatility and import competition.

Management Guidance, Assumptions, and Outlook #

• Assumptions:
  • Continued domestic demand.
  • Sustained government infrastructure spending.
  • Ability to manage input costs.
  • Successful ramp-up of new capacities.
  • Maintaining technological differentiation and service quality.
• Outlook: Positive, focusing on sustainable growth, innovation, and operational efficiency.

Audit & Compliance #

Audit and Regulatory Analysis #

Financial Analysis Report: Vesuvius India Limited (Based on FY2024 Annual Report Data) #

Auditor’s Opinion and Qualifications #

The Independent Auditor’s Report provides an unqualified opinion, stating that the financial statements give a true and fair view of the Company’s state of affairs as of December 31, 2024, and its financial performance and cash flows for the year then ended, in conformity with Indian Accounting Standards (Ind AS).

Key Audit Matter (KAM) #

Appropriateness of Revenue Recognition under Ind AS 115 was identified as a KAM due to the judgment involved in assessing performance obligations and transaction prices. Audit procedures, including testing controls, sample contracts, and variable consideration adjustments, resulted in no exceptions noted.

Qualifications/Modifications on Other Matters #

While the opinion on financial statements is unqualified, the auditors noted exceptions in the “Report on other legal and regulatory requirements” concerning:

• Maintenance of Books of Account (Sec 143(3)(b) & Rule 11(g)): Daily backups of certain electronic books and papers were not maintained on servers physically located in India for parts or all of the year. Additionally, the audit trail (edit log) feature was not enabled at the database level for all relevant software, though the application-level audit trail operated and showed no signs of tampering.

Key Accounting Policies and Changes #

The financial statements are prepared under Ind AS on a historical cost basis, with exceptions for certain financial instruments, defined benefit plans, and share-based payments.

Material Policies #

Key policies cover Property, Plant & Equipment (PPE), Capital Work-in-Progress, Right-of-Use Assets, Intangible Assets, Inventories (valued at lower of cost [weighted average] and NRV), Revenue Recognition (Ind AS 115 - recognized upon transfer of control), Employee Benefits (Defined Contribution & Defined Benefit Plans), Leases (Ind AS 116), Financial Instruments (Ind AS 109 - primarily amortized cost), Income