VESUVIUS - Vesuvius India

📊 NSE: VESUVIUS 🏢 Refractories / Intermediates 📅 Last Updated: 12/14/2025 15:04

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 16.56% YoY, reaching INR 1,868.57 Cr in 2024 compared to INR 1,603.13 Cr in 2023. The growth is primarily driven by the steel sector, which accounts for approximately 60-70% of the refractory industry demand.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates on a pan-India basis with a new major manufacturing hub in Vizag.

Profitability Margins

Operating Profit Margin improved to 18.73% in 2024 from 17.83% in 2023. Net Profit Margin increased to 14.16% from 13.28% YoY, reflecting improved operational efficiencies and higher-value product mix from advanced refractories.

EBITDA Margin

PBDIT (EBITDA) margin stood at 21.18% in 2024, with absolute PBDIT rising 23.04% to INR 395.87 Cr from INR 321.75 Cr in 2023.

Capital Expenditure

The Vesuvius Group has committed to investing INR 1,000 Cr in India. Vesuvius India Limited has already invested approximately INR 360 Cr over the last 2.5 years, surpassing its initial standalone outlook of INR 500 Cr as it expands manufacturing capacity in Vizag.

Credit Rating & Borrowing

The company maintains a very low Debt-Equity Ratio of 0.01, indicating it is virtually debt-free. Interest Coverage Ratio remains exceptionally high at 297x, though it decreased from 665x in 2023 due to a rise in finance costs to INR 1.18 Cr.

⚙️ Operational Drivers

Raw Materials

Refractory raw materials and specialty ceramic components; specific chemical names and percentage of total cost are not disclosed in available documents.

Import Sources

Not disclosed in available documents; however, the company notes that securing a stable supply of raw materials is a critical operational risk.

Capacity Expansion

Inaugurated a new facility in Vizag with an immediate capacity of 250,000 tonnes for advanced refractories and flow control products. The Vizag site covers 32 acres, with significant land remaining for future phases of expansion over the next 2-3 years.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company highlights susceptibility to commodity price fluctuations and the need for stable supply chains to protect the 18.73% operating margin.

Manufacturing Efficiency

The company is implementing 'most modern equipment' at the Vizag plant to increase market share and improve production speeds for flow control and shaped refractories.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

The company aims to double its turnover within the next 5-6 years by leveraging the new 250,000-tonne Vizag capacity. Strategy includes gaining market share in advanced refractories, expanding into non-steel sectors (aluminum, cement, glass) where they are currently 'weaker than average', and benefiting from the Indian steel industry's modernization and decarbonization shifts.

Products & Services

Specialty ceramics, flow control refractories, shaped refractories, advanced refractories for continuous casting, and technical service contracts (TRMS) for molten metal flow engineering.

Brand Portfolio

Vesuvius

New Products/Services

Advanced refractories and flow control systems produced at the new Vizag plant; the company is also increasing focus on non-steel applications like kilns and incinerators.

Market Expansion

Targeting increased presence in non-steel sectors and expanding the 'playing field' through innovation in decarbonization-friendly refractory solutions.

Market Share & Ranking

The Vesuvius Group accounts for approximately two-thirds of the world's continuous cast refractory market; VIL aims to grow faster than the Indian market to increase local share.

Strategic Alliances

Ultimate holding company is Vesuvius plc (UK), providing access to global R&D and technological expertise in molten metal flow engineering.

🌍 External Factors

Industry Trends

The industry is shifting toward 'advanced refractories' and decarbonization. Vesuvius is positioning itself to provide technology that helps steel plants transition to greener processes, evolving from a product supplier to a performance partner.

Competitive Landscape

Faces competition from other refractory players but maintains an edge through R&D and the inauguration of the 'most modern' manufacturing facility in Vizag.

Competitive Moat

Moat is built on technological leadership in flow control and a 30-year history of 'partnership in performance' with major steel plants. This is sustained by high switching costs for customers who rely on Vesuvius for safety and precision in high-temperature molten metal environments.

Macro Economic Sensitivity

Highly sensitive to the growth of the Indian steel industry and infrastructure development initiatives, which are the primary drivers for refractory demand.

Consumer Behavior

Industrial customers are increasingly demanding higher-performance, longer-lasting refractories to improve steel plant uptime and safety.

Geopolitical Risks

Geopolitical uncertainties are cited as a risk to both raw material supply chains and the stability of end-user commodity prices.

⚖️ Regulatory & Governance

Industry Regulations

Complies with the Companies Act, 2013 and SEBI (LODR) Regulations. The company follows a January to December financial year as permitted by a 2016 Company Law Board order.

Taxation Policy Impact

Effective tax rate for 2024 was approximately 24.17% (INR 84.32 Cr tax on INR 348.84 Cr PBT).

Legal Contingencies

The company reports no material weaknesses in internal financial controls and confirms strict compliance with all applicable laws; no specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Cyclicality of the steel industry (high impact), raw material price volatility (medium impact), and the speed of adoption for new advanced refractory products.