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Earnings Call Transcript

VMS TMT Earnings Call Transcript: Key Takeaways

VMS TMT reports 16% revenue growth but faces a sharp 41% EBITDA decline due to high scrap costs and currency volatility. Management is pivoting to backward integration and solar power to recover margins.

Guidance and delivery
Management target Revenue 15.0% FY27
Highlights
Revenue growth16.16% YoY growth driven by higher TMT realization prices.
MarginsContracting; EBITDA fell 41% due to high scrap and FX costs.
Demand visibilityStrong visibility from Gujarat's infrastructure and rural housing sectors.
Management confidenceBalanced; optimistic on integration but cautious regarding global raw material volatility.

Growth

Revenue rose to ₹247.88 Cr from ₹213.39 Cr YoY, primarily price-led. However, EBITDA margins contracted significantly due to imported scrap price hikes.

Outlook

Targeting ₹2000 Cr+ top-line in the medium term. Expected ₹10 Cr annual savings from new 15MW solar plant.

Risks

High reliance on imported scrap (50-60%) exposes margins to FX volatility and global supply chain shocks. Inventory buildup to ₹228 Cr is a working capital drag.

Last quarter's promises, checked

Delivered

  • Guided 12MW solar commissioning in June 2026 → delivered operational (= BEAT)
  • Guided 70-75% capacity utilization → delivered 80% (= BEAT)
  • Guided focus on TMT segment only → delivered single segment focus (= BEAT)

Partly delivered

  • Guided 15MW total solar capacity → delivered 12MW with 3MW pending (= PARTIAL)

Missed

  • Guided ₹1,500/ton margin benefit from integration → delivered 41% EBITDA decline (= MISS)
  • Guided stable margins via scrap-TMT price correlation → delivered contraction due to FX/scrap spikes (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: VMSTMT. Summary written with AI assistance from the document.

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VMS TMT Ltd: key numbers

Share price
₹46.48
Market cap
₹230.7 Cr
Revenue (annual)
₹838.6 Cr
Net profit (annual)
₹21.03 Cr
P/E (TTM)
13.6×Sector 19.0×
Promoter holding
67.18%+0.00% QoQ
FII holding
2.04%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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