Visa Steel FY09 revenues grew over 50%

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Visa Steel FY2009 revenues grew over 50% to Rs 10,405 million. The Company has set up a subsidiary named VISA BAO Limited with 65% stake for setting up a 100,000 TPA Ferro Chrome Plant.

Key Takeways from Visa Steel's concall:

Key developments during the year

150,000 TPA 1st DRI Kiln of 300,000 TPA Sponge Iron facility commissioned in Q3 FY2009 and 2nd 150,000 TPA DRI Kiln commissioned on 24 June 2009.

Consequently, the entire 300,000 TPA Sponge Iron capacity is operational.

2 X 25 MW Waste Heat Recovery Power Generation Facility commissioned during the year.

Post completion of 1st 25 MW unit in October 2008 and 2nd 25 MW unit in March 2009, power requirement is being met through captive generation.

Utilization of 50 MW power facility expected to increase to optimal levels, given that waste heat from the Sponge Iron facility is also used for generating power.

FY2009

Revenues grew over 50% to Rs 10,405 million

Manufacturing revenues grow almost threefold

Way Forward - Facilities in progress

Additional 25 MW Power Plant along with the 500,000 TPA Steel Melt Shop and 500,000 TPA Bar & Wire Rod Mill expected to be commissioned by Q3 FY2010-11.

The Company has set up a subsidiary named VISA BAO Limited with 65% stake for setting up a 100,000 TPA Ferro Chrome Plant. The balance 35% is held by Baosteel Resources Co. Limited, China.

FY2009 Financial Performance (compared with FY2008)

Revenues improve 52.4% to Rs. 10,404.6 million from Rs. 6,828.1 million.

Manufacturing revenues grow 181.5% to Rs. 10,050.9 million versus Rs 3,570.4 million.

PBIDT excluding exceptional item at Rs. 815.5 million from Rs. 939.3 million.

Operating profits excluding exceptional item in the manufacturing segment at Rs. 755.5 million versus Rs. 794.5 million.

PAT at Rs. (668.14) million versus a PAT of Rs. 431.5 million.

Q4 FY2009 Financial Performance (compared with Q4 FY2008)

Revenues increase 11.8% to Rs. 2,903.8 million versus Rs. 2,596.6 million due to volume growth in spite of drop in prices.

Revenues from manufacturing segment increase 70.9% to Rs. 2,825.8 million from Rs. 1,653.8 million.

PBIDT at Rs. (1,195.1) million compared to Rs 442.6 million.

PAT stands at Rs. (1,106.8) million versus Rs 209.9 million.

For further details listen to the concall.....