Vibhor Steel Tubes Limited (VSTL) has reported a smooth first quarter, with positive turnover reflecting in both top line and margins. The company's Managing Director, Mr. Vibhor Kaushik, shared insights during the recent earnings conference call, highlighting key developments and the company's outlook.

New Jharsuguda Plant Operational

The most significant update is the commencement of operations at VSTL's new plant in Jharsuguda, Odisha. After facing delays in electricity connection, the facility is now fully operational. Key highlights of the new plant include:

• Two tube mills successfully tested and operational
• Currently manufacturing three sizes of steel pipes: 1.5-inch, 2-inch, and 1-inch
• Production of approximately 1,000 tonnes of highway guard rails
• Galvanization of over 500 tonnes of products
• Annual capacity of 100,000-120,000 tonnes, similar to the company's Maharashtra and Telangana plants
• Total CAPEX of ₹120.00 crore

Market Outlook and Strategy

Mr. Kaushik expressed optimism about the company's future, citing several favorable factors:

1. Steady Domestic Demand: The management noted steady domestic demand for steel pipes.
2. Stable Raw Material Prices: Unlike the previous year, the company expects less fluctuation in raw material prices, potentially leading to healthy margin realization.
3. Government Support: Duties imposed by the government have made domestic raw materials more competitive.
4. Expanded Market Reach: With the new Jharsuguda plant, VSTL aims to capture market share in North-East India, West Bengal, Odisha, and Raipur.
5. Existing Dealer Network: The company plans to leverage its existing dealer network, with many dealers already showing enthusiasm and generating enquiries for pipe products from the new plant.

Financial Performance

While specific financial figures were not disclosed, Mr. Kaushik mentioned that the first quarter performance was reflected positively in both the top line and margins. The company expects the new Jharsuguda plant to contribute to growth and turnover from the second quarter onwards.

Future Outlook

VSTL's management described the outlook as very promising, with steady order intake observed. The company is focusing on:

1. Streamlining operations in the new North-East market
2. Achieving full capacity utilization at the Jharsuguda plant
3. Expanding presence across India, with different plants catering to specific regions

Mr. Kaushik concluded the call by stating, "We are viewing this as a very promising year and it should lay a foundation to a very successful and very bright future for this organization in terms of achieving a new turnover and also in terms of achieving the new markets which we have not been able to tap over these years."

As Vibhor Steel Tubes Limited continues to expand its operations and market reach, investors and industry observers will be keenly watching the company's performance in the coming quarters, particularly the impact of the new Jharsuguda plant on overall growth and market share.

Vibhor Steel Tubes Limited (VSTL) has announced a significant milestone in its expansion efforts, marking the commencement of electricity supply at its Unit III facility in Odisha. This development, effective from July 11, 2025, represents a crucial step in enhancing the company's production capabilities and operational efficiency.

Power Supply Initiation

The company officially started the electricity supply operations at its Unit III, located in Village Podbahal, Sardar Sundargarh Tahsil, Sundargarh district, Odisha. This advancement follows the earlier commencement of commercial production using generator power, which began on June 24, 2025.

Operational Impact

With the initiation of grid electricity supply, Vibhor Steel Tubes has transitioned from relying solely on generator power to a more stable and potentially cost-effective energy source. This move is expected to support the company's production processes and potentially improve operational efficiency at the Odisha facility.

Strategic Expansion

The power supply commencement at Unit III is part of Vibhor Steel Tubes' broader strategy to expand its manufacturing footprint. The company, which specializes in steel tube production, now operates manufacturing units across three states:

1. Maharashtra - Pipe Nagar, Raigad
2. Telangana - Udithyala, Mahabubnagar
3. Odisha - Podbahal, Sundargarh

Management Statement

Mr. Vibhor Kaushik, Managing Director of Vibhor Steel Tubes Limited, stated in the company's official communication, "This development marks a significant step towards the commissioning and operational readiness of the said facility."

Looking Ahead

The successful initiation of power supply at the Odisha unit signifies Vibhor Steel Tubes' commitment to expanding its production capabilities. As the company continues to grow its operations across multiple states, investors and industry observers will likely be watching closely to see how this expansion translates into business performance and market position in the steel tubes sector.

Vibhor Steel Tubes Limited continues to demonstrate its focus on strategic growth and operational enhancements in the competitive steel industry landscape.