Vardhman Special Steels shows positive growth in Q1 2024, but areas for improvement remain.

Debt to Equity Ratio - Quarterly: At 0.01 is lower than the industry average of 0.44. The company has a low debt burden, but may not be utilizing leverage effectively.
Return on Equity (ROE) - Quarterly: At 8.5% is lower than the industry average of 12.5%. The company's profitability is lower compared to its peers.
Return on Capital Employed (ROCE) - Quarterly: At 11.6% is lower than the industry average of 14.3%. The company's efficiency in utilizing capital is lower compared to its peers.

Vardhman Special Steels, a smallcap company in the iron and steel industry, has recently announced its financial results for the quarter ending March 2024. The company has shown positive performance in this quarter, with a significant improvement in its financial score from -7 to 19 in the last three months.

One of the key highlights of the financial results is the growth in Profit Before Tax (PBT) by 99.1% to Rs 35.18 crore, compared to the average PBT of the previous four quarters at Rs 17.67 crore. This trend is expected to continue in the near term. Similarly, the Profit After Tax (PAT) has also shown a growth of 80.9% to Rs 32.79 crore, compared to the average PAT of the previous four quarters at Rs 18.13 crore.

The company has also shown improvement in its operating profit to interest ratio, which is at its highest in the last five quarters at 10.48 times. This indicates that Vardhman Special Steels is effectively managing its interest payments. The operating profit (PBDIT) has also shown a positive trend, growing each quarter in the last five quarters and reaching its highest at Rs 48.83 crore in this quarter.

The company's efficiency has also improved, as seen in the operating profit margin, which has grown each quarter in the last five quarters and is at its highest at 11.11%. The net sales for this quarter have also reached their highest at Rs 439.41 crore, indicating a positive trend in the near term. The earnings per share (EPS) have also increased to Rs 4.03, showing an increase in profitability and creating higher earnings for shareholders.

However, there are some areas that need improvement for Vardhman Special Steels. The non-operating income has increased to its highest at Rs 8.71 crore in the last five quarters, but this may not be sustainable as it comes from non-business activities. The company also has a low debt burden, with a debt to equity ratio of 0.01, but it may not be utilizing leverage effectively. The return on equity (ROE) and return on capital employed (ROCE) are also lower than the industry average, indicating lower profitability and efficiency in utilizing capital compared to its peers.

Overall, Vardhman Special Steels has shown positive financial performance in the quarter ending March 2024, with improvements in key areas. However, there are also areas that need attention for the company to continue its growth in the future. Based on these financial results, MarketsMOJO has given a 'Hold' call for the stock of Vardhman Special Steels.