India’s Vardhman Special Steels expects sales volumes, which recovered in Q2 FY2021, to remain steady through Q3 and Q4 driven by a significant pick up in demand from the auto sector. The company forecasts profits for Q3 and Q4 and positive results for the full year as increased sales volumes offset the loss incurred in Q1, according to the company’s update on the impact of the COVID-19 pandemic.
Demand from the automobiles sector has recovered significantly and surpassed pre-pandemic levels, states the release. The improvement in auto demand has boosted sales. The company is also negotiating higher prices with end-users. Vardhman Special will report profits for Q2, and the results announcement is scheduled for Monday, Nov 9.
Vardhman Special’s Q1 was severely impacted by the pandemic. The company struggled with high raw material inventory due to the arrival of imports, while sales volumes and margins were lower. The company had reported a loss of Rs127.8mn ($1.72mn) in Q1. But the situation has visibly improved in Q3, said the release.
($=Rs74.323)