Vibhor Steel revenue up 16%, but net profit dives 42% on Odisha plant costs
Q4 net profit fell to ₹2.57 cr as finance costs and depreciation from the new Odisha plant ate into 26.15% EBITDA growth. Full-year profit also down 25.32%.
What's new
- Q4 revenue rose 16.24% to ₹335.13 crore, but net profit slumped 42.12% to ₹2.57 crore.
- EBITDA grew 26.15%, but higher finance costs and depreciation from the Odisha plant squeezed margins.
- Full-year net profit dropped 25.32% to ₹8.79 crore despite revenue growth of 15.35%.
Why it matters
Vibhor's top line is growing, but the cost of its new Odisha capacity is hitting profits now. This is a classic capex pain phase: higher depreciation and interest erode the bottom line. The stock's re-rating depends on when that plant starts contributing cash flow, not just revenue.
What we're watching
- When the Odisha plant reaches breakeven and begins generating positive free cash flow.
- Trend in finance costs and debt levels in the coming quarters.
- Any guidance on capacity utilisation of the new plant.
The full read
Vibhor Steel Tubes grew Q4 revenue by 16.24% to ₹335.13 crore, and EBITDA climbed 26.15%. But net profit collapsed 42.12% to ₹2.57 crore. The culprit is the new Odisha plant: finance costs and depreciation rose sharply, turning revenue growth into a profit squeeze. For the full year, net profit fell 25.32% to ₹8.79 crore on revenue of ₹1,149.35 crore. The expansion is the right long-term move, but near-term earnings are paying the price. The question is how quickly the new capacity ramps to cover those fixed costs.