Current Price: ₹45.00 | Up 3.90% Today
🧨 At a Glance
Vaswani Industries Limited (NSE: VASWANI) has reported a net profit of ₹860.43 crore in FY25, riding high on strong iron & steel revenues. But the catch? A massive ₹352.95 crore hit from “exceptional items” — including losses from buyback of investments and MAT credit write-offs.
Translation: Profit was strong, but they had to burn a bonfire of cash to get there.
🏭 About Vaswani Industries
- Based in Raipur, Chhattisgarh
- Diversified across Iron & Steel, Power, and recently listed Agri and Real Estate as micro segments (though negligible in revenue)
- One of Central India’s major steel product manufacturers with captive power generation
👑 Key Figures & Management
| Name | Designation |
|---|---|
| Yashwant Vaswani | Whole Time Director |
| Satya Narayan Gupta | Director |
| Sakshi Agrawal | Company Secretary |
💰 FY25 Financial Snapshot
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Total Revenue | ₹4140.08 Cr | ₹3910.08 Cr | ▲ 5.9% |
| EBITDA (approx) | ₹2516.64 Cr* | ₹2011.77 Cr* | ▲ 25% |
| Exceptional Losses | ₹352.95 Cr | Nil | 🔻 |
| Profit Before Tax | ₹1316.85 Cr | ₹1232.56 Cr | ▲ 6.8% |
| Net Profit | ₹860.43 Cr | ₹903.29 Cr | ▼ 4.7% |
| Total Comprehensive Income | ₹883.37 Cr | ₹900.35 Cr | ▼ |
*Calculated from operating PBT + Depreciation + Finance Costs
🧨 Let’s Talk About the ₹353 Cr Fire
Two major non-operating hits crushed earnings:
- MAT Credit Write-off: ₹188.04 Cr
- Loss on Investment Buyback: ₹164.91 Cr
Both are technically one-time — but large enough to deserve a warning bell. 📣
🧾 Segment Revenue – Q4 FY25
| Segment | Revenue (₹ Cr) | Profit (₹ Cr) |
|---|---|---|
| Iron & Steel | ₹1109.49 | ₹90.87 |
| Power | ₹59.78 | ₹11.95 |
| Agri/Real Estate | Negligible | Negligible |
Iron & Steel dominates — over 90% of total revenue.
📊 Earnings Per Share (EPS)
| Metric | FY25 | FY24 |
|---|---|---|
| EPS (Basic & Diluted) | ₹2.81 | ₹3.01 |
Despite stronger revenue, EPS fell due to those exceptional hits.
🏦 Balance Sheet Highlights (Standalone)
| Metric | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹3619.03 Cr | ₹1888.17 Cr |
| Equity (Net Worth) | ₹1417.84 Cr | ₹1216.38 Cr |
| Total Liabilities | ₹2192.19 Cr | ₹671.79 Cr |
| Cash & Cash Equivalents | ₹226.21 Cr | ₹119.52 Cr |
Borrowings jumped substantially — short-term borrowing shot up by ₹1,272 Cr.
🧾 Cash Flow Insights
| Cash Flow | FY25 | FY24 |
|---|---|---|
| Operating | ₹3254.67 Cr | ₹3564.67 Cr |
| Investing | ₹(432.05) Cr | ₹(281.89) Cr |
| Financing | ₹1223.83 Cr | ₹945.56 Cr |
| Net Increase in Cash | ₹1066.88 Cr | ₹808.98 Cr |
Even after the buyback loss, the company is flush with liquidity — thanks to huge inflows from operations and short-term borrowings.
💸 Dividend?
No mention of dividend declared yet. Might be saving the cash to recover from the hit. Or planning something bigger?
⚠️ Auditor’s Note
- Unmodified (clean) audit opinion ✅
- But highlighted lack of MSME disclosure compliance under the 2006 Act 🧾
Nothing alarming, but still a reminder that MSME payments remain a systemic opacity in Indian midcaps.
📉 Fair Value Estimate
Let’s crunch some back-of-the-napkin valuation:
- Normalized PAT (excluding exceptional loss): ₹1213 Cr
- EPS (normalized): ₹3.87
- Assume fair P/E: 15 (for cyclical steel co)
- FV = 3.87 × 15 = ₹58/share
CMP is ₹45 — that’s ~24% undervaluation if exceptional hits don’t repeat.
🧠 EduInvesting Take
“Steel is strong. But so is this company’s appetite for risk.”
- Operating numbers? Solid.
- Borrowing? Exploded — watch that short-term debt.
- Profit? Hidden under one-time write-offs.
- Fire sale of investments? Painful, but possibly strategic cleanup.
Despite all this, they managed to stay profitable, generate cash, and maintain EPS above ₹2.8. That’s not luck — that’s a company that knows how to handle fire.
🚨 Risks
- Large rise in debt → from ₹671 Cr to ₹2192 Cr in a year 😨
- Exceptional items aren’t explained well — what’s this investment buyback?
- MSME dues compliance is still pending.
🏁 Final Word
“Vaswani Industries made ₹860 Cr… after setting ₹353 Cr on fire.”
And the market still has it at a ₹1400 Cr market cap. Something doesn’t add up. Either this stock is cheap — or it’s hiding more than it shows.
Tags: Vaswani Industries, FY25 Results, Steel Stocks India, Power Sector, Exceptional Loss, Buyback Loss, MAT Credit, Vaswani EPS, EduInvesting
