VMS Industries Ltd reports Revenue of Rs. 266.4 crore in FY24 with 89.7% growth Y-o-Y; PAT up 152.9% to Rs. 6.3 crore

Ahmedabad (Gujarat): Gujarat based VMS Industries Ltd (BSE - 533427) has reported excellent operational and financial performance of the 12 months ended March 2024. Company has achieved highest ever Annual Revenue of Rs. 266.37 crore for FY24 with 89.7% Y-o-Y growth as compared to revenue of Rs. 140.39 crore in the corresponding period of FY23.

Company announced first interim dividend of Rs. 0.50 per share

Net Profit for the Full year of FY24 surged to Rs. 6.32 crore, representing a growth of 152.9% as compared to PAT of Rs. 2.50 crore in FY23. EBITDA for the FY24 was reported at Rs. 10.54 crore, 110% growth Y-o-Y as compared to EBITDA of Rs. 5.02 crore in FY23. In FY 24, company has continued its trajectory of robust growth, reporting significant improvements across key financial metrics. Company has also bagged new orders worth approx. Rs. 168 crore.

The board of directors in the meeting held on July 3, 2024 announced the first interim dividend for FY24-25 of Rs. 0.50 per share on Rs. 10 face value. This move underlines the company’s commitment to rewarding its investors and signifies the substantial growth and success achieved over the years.

Financial Highlights (Rs. crore)

Sharing more details, Mr. Manojkumar Jain, Managing Director VMS Industries Limited said – “We are immensely proud of VMS Industries Limited’s exceptional performance in 12M Fy’24, marked by robust revenue growth and profitability. Our strategic initiatives have yielded significant results, as evidenced by the substantial increase in revenue and profitability metrics. The efficient management of working capital and focus on asset dismantling business further underscore our operational excellence and resilience. Looking ahead, we anticipate a strong revenue performance across major segments fuelled by expected growth in ship recycling business and Asset dismantling business.”

Outlook and Future plans – VMS Industries Limited remains committed to its growth trajectory, with a focus on strategic initiatives and future Opportunities.

Future Opportunities: In last 10 years more than 7000 vessels have been recycled world-wide, out of which more than 35% vessels were recycled in India and in the coming 10 years this figure is expected to double. Moreover share of India in ship recycling is also expected to increase. India has better chance and not much competition. Based on which we are anticipating robust growth in ship breaking and Assets Dismantling & Demolition in India. VMS Industries Limited remains optimistic about its future prospects, poised for sustained growth and value creation for stakeholders.

Incorporated in December 1991, VMS Industries Ltd recycles ships, exports products related to ships, and buys and dismantles ships. Company also trades in ferrous and non-ferrous metals. VMSI is headquartered in Ahmedabad, India. Company is certified by ISO 9001:2008, ISO14001:2004, ISO 30000-2009, and OHSAS18001:2007 for its ship recycling and offshore business.

Company in the month of May 2024 launched a rights issue of Rs. 28 crore to fund its expansion plans, meet working capital requirements, and general corporate purposes. The right issue was fully subscribed at 1.25 times the offer.

Company’s business segments include: i) Ship recycling: Company breaks down old ships into their parts and recycles them. The company has an industrial plot at Alang, Bhavnagar, using technology that reduces environmental hazards. ii) Trading of various Metals: Company trades in various metals encompasses a dynamic market where recyclable metal materials are bought, sold, and repurposed worldwide. iii) Assets Dismantling/Demolition: Asset dismantling or demolition is a complex process that deconstructs industrial facilities like manufacturing plants and warehouses. It requires specialized expertise, equipment, and adherence to safety protocols and environmental regulations.

ABOUT VMS INDUSTRIES LIMITED 

VMS Industries was incorporated on December 2, 1991 with the object of carrying on the business of providing different kinds of consulting and information technology services. During 1992- 1994, the Company was engaged in computerization of land revenue records of Bhavnagar Municipal Corporation.

The Ship Breaking Industry was revived in the year 2003-04 and therefore we decided to diversify activities. During the year 2004, Gujarat Maritime Board auctioned vacant plots and under open bid we have been allotted vacant Plot No. 160 at Alang-Sosiya Ship Breaking Yard admeasuring 1350 sq. meter.

In the year 2022 size of the plot was increased from 2700 Sq. Mtr to 5400 Sq. Mtr. The ship-breaking facility received certifications from NK Class (Japan), and ISO certifications (9001, 14001 & 45001) from Bureau veritas.

Now, leveraging its established contacts in the metal industry, the Company aims to diversify into the dismantling/demolition of Assets. The Company has started making participation in various Bids to acquire factories for dismantling.

In line with the same, the Company has participated in Bid and secured dismantling / cutting / sale of incomplete Ships and ship blocks lying at ABG shipyard, Dahej Shipyard weighing approximately 48000 MT valuing Rs.163.20 Crores plus GST from Welspun Corp Limited.

Presently VMS Industries is mainly engaged in the business activities of Ship Recycling, Trading of Various Metals and Asset Dismantling/Demolition.