Investor Presentaiton

Management's Message VARDHMAN SPECIAL STEELS LTD. A COMMITMENT TO QUALITY Commenting on the results Mr. Sachit Jain, Vice Chairman and Managing Director said - "Q1 FY23 has been a quarter that has witnessed strong headwinds in terms of raw material price fluctuations. While, the industry was negotiating a price increase with the OEMS, that has been due for sometime, we witnessed a sharp fall in raw material price in later half of May which significantly impacted the quantum of price increase we were supposed to obtain. This led to a pressure on the gross margins thereby impacting the EBITDA performance. In terms of sales volume, we performed rather very well, registering a growth of about 20% and crossed 52,000 tons mark in the quarter. Another 20% increase in the turnover came from the 20% price increase we got from the OEMs. The change in product mix towards value added products, as a part of the strategy, is an on-going process and about 2% increase in topline has come in due to this. The progress of the Aichi association continues with the commencement of phase II. After success of the sampling phase, the phase for supply of Trial order has already begun. This is in line with the expected timeline as stated earlier. The entire team of Vardhman has put in an immense amount of effort to face the recent headwinds and deserves appreciation. I would also like to express my gratitude towards our customers, suppliers, Banks and the Government for their unstinted, cooperation and support. I assure my shareholders that we will keep up the momentum of efforts and hard work and keep performing as per stated targets." 5

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