Slide 1: Q4 & FY24 Earnings Presentation
Specialty Wire Rope Solutions Provider Q4 & FY24 Earnings Presentation 26th April, 2024
Slide 2: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Usha Martin Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall no
Slide 3: Company Overview
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Slide 4: Leading global and India's no.1 specialty steel wire rope solutions provider
Leading global and India’s no.1 specialty steel wire rope solutions provider Rich Legacy Of 6 ~60 years Manufacturing Facilities Offering wide range of: Presence across 30+ Specialty wire ropes 6 Distribution Centers High-quality wires Continents Low relaxation prestressed concrete steel stran
Slide 5: We are undergoing a strategic transformation and are poised for growth
We are undergoing a strategic transformation and are poised for growth Turnaround Consolidation Growth • Value accretive capex • Divestment of steel business • Renewed focus on specialty • Enhance specialty offerings resulting in: wire rope business across industry segments • Sharp deleveraging • St
Slide 6: Multi-faceted growth strategy continue to drive our performance
Multi-faceted growth strategy continue to drive our performance Capex initiatives focused on value-migration Expand international market share through overseas subsidiaries Remain financially prudent Strong focus on digital initiatives 6
Slide 7: Q4 & FY24 Results Overview
Q4 & FY24 Results Overview
Slide 8: Key Financial Highlights – Consolidated Q4 & FY24
Key Financial Highlights – Consolidated Q4 & FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 18% 20% 18% 16% 19% 3,268 3,225 513 599 855 797 829 154 157 152 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Shift (%) QoQ: 4.0% YoY: 3.1% 1.3% Shift (%) Q
Slide 9: Segmental revenue overview for consolidated business
Segmental revenue overview for consolidated business In Rs. crore Wire Rope Wire & Strand 2,194 2,277 339 274 598 561 607 79 74 66 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Shift (%) QoQ: 8.2% YoY : 1.7% 3.8% Shift (%) QoQ: 11.4% YoY: 17.0% 19.3% Core Wire-Rope segm
Slide 10: Diversified presence across geographies and segments
Diversified presence across geographies and segments Revenue Segmentation for FY24 Product End Industry1 Geography1 Others, 3% Fishing, 3% Others, 9% America, 7% Mining, 6% Engineering, 22% Wire & Strand, 8% Middle East & Africa, 9% Utilities, 4% LRPC, 12% Elevator, 8% Asia Pacific, 15% India, 45% C
Slide 11: Profitability indicators remain strong
Profitability indicators remain strong ROCE (%) ROE (%) 21.9% 19.2% 21.2% 19.2% 18.8% 18.8% FY22 FY23 FY24 FY22 FY23 FY24 Interest Coverage (x) Fixed Asset Turnover Ratio (x) 23.2 3.4 3.2 16.0 2.7 9.2 FY22 FY23 FY24 FY22 FY23 FY24 Note 1: All figures mentioned in the slide are consolidated financial
Slide 12: Discussion on Financial and Operational Performance
Discussion on Financial and Operational Performance Net Revenues Revenue from operations decreased by 1.3% Y-o-Y in FY24 to Rs. 3,225.2 crore. In Q4FY24, revenues stood at Rs. 829.0 crore, registering a 3.1% Y-o-Y de-growth o Although both the Wire & Strand and LRPC segments witnessed declines, th
Slide 13: Successfully Managing Raw-Material Volatility
Successfully Managing Raw-Material Volatility Steel Price (Rs. per tonne) 61,691 59,210 55,362 55,392 54,106 53,109 FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 EBITDA/tonne2 (Rs.) 32,227 34,018 32,299 31,178 31,784 26,473 FY23 Q1FY24 Q2FY24 Q3FY24 Q4 FY24 FY24 Note 1: All figures mentioned in the slide ar
Slide 14: Consolidated PBT Bridge
Consolidated PBT Bridge In Rs. crore 25 -13 142 -29 136 11 Sales Realizations: Revenue performance was impacted by decreased realizations in Wire & Strand and LRPC segment. However, realization from Wire Rope continue to increase through sustained emphasis on value-added offerings Q4FY23 PBT Sales
Slide 15: Balance Sheet remains significantly de-risked
Balance Sheet remains significantly de-risked In Rs. crore Gross Debt Net Debt 355 347 292 191 185 124 FY22 FY23 FY24 FY22 FY23 FY24 Gross Debt to Equity (x) Net Debt to Equity (x) 0.11 0.21 0.09 0.17 0.12 0.05 FY22 FY23 FY24 FY22 FY23 FY24 Note 1: All figures mentioned in the slide are consolidated
Slide 16: Continuous focus on managing working capital
Continuous focus on managing working capital Current Ratio (x) Net Working Capital (Rs. Crore) 2.9 2.5 1,028 1,089 2.2 874 FY22 FY23 FY24 FY22 FY23 FY24 Net Working Capital to Turnover (LTM, %) 32.8% 28.8% 29.1% FY22 FY23 FY24 Note 1: All figures mentioned in the slide are consolidated financials 16
Slide 17: Significant improvement in Cash flows
Significant improvement in Cash flows In Rs. crore Operating Cash Flow (OCF) before Income Tax and % to EBITDA2 94% 67% 561 38% 345 Healthy OCF generation supports 146 Company’s capital allocation plans FY22 FY23 FY24 o The OCF to EBITDA2 in FY24 recorded a healthy improvement, standing at 94% com
Slide 18: Management Comment
Management Comment Commenting on the performance Mr. Tapas Gangopadhyay, Non-Executive Director said: “We have concluded the financial year 2024 on a positive note with our robust operating cash flows reflecting strong performance. Despite facing macro-economic challenges, the Company managed to gen
Slide 19: Annexure
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Slide 20: Abridged Consolidated P&L Statement
Abridged Consolidated P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Change (%) Change (%) Change (%) Revenue from Operations 829.0 855.2 -3.1% 797.1 4.0% 3,225.2 3,267.8 -1.3% Operating EBITDA 151.5 154.0 -1.6% 157.1 -3.5% 598.6 513.3 16.6% Operating EBITDA Margin (%
Slide 21: Abridged Standalone P&L Statement
Abridged Standalone P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y Q4 FY24 Q4 FY23 Q3 FY24 FY24 FY23 Change (%) Change (%) Change (%) Revenue from Operations 515.1 511.2 0.8% 532.0 -3.2% 2,046.1 2,041.7 0.2% Operating EBITDA 97.0 83.5 16.1% 112.3 -13.6% 400.2 298.0 34.3% Operating EBITDA Margin (%) 18
Slide 22: Key Operational Highlights – Consolidated Q4 & FY24
Key Operational Highlights – Consolidated Q4 & FY24 Sales Volumes1 (‘000 MT) 192 Decrease in overall volumes YoY, primarily due to a 181 decline in LRPC and Wire & Strand volumes Segment wise contribution to overall volumes FY24: 47 45 47 o Wire Rope – 52% (FY23: 49%) o Wire & Strand – 18% (FY23
Slide 23: Key Operational Highlights – Standalone Q4 & FY24
Key Operational Highlights – Standalone Q4 & FY24 Sales Volumes1 (‘000 MT) Decrease in overall volumes YoY, primarily due to a decline Domestic Export in LRPC volumes 159 157 38 42 Segment wise contribution to overall volumes FY24: 39 40 40 o Wire Rope – 47% (FY23: 43%) 121 115 10 11 10 o Wire &
Slide 24: Key Financial Highlights – Standalone Q4 & FY24
Key Financial Highlights – Standalone Q4 & FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 16% 21% 19% 15% 20% Domestic Export 2,042 2,046 400 298 667 732 511 532 515 84 112 97 1,375 1,314 173 192 184 338 340 331 Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Q4 FY23 Q3 FY24 Q4 FY24 FY23 F
Slide 25: Long term issuer rating at 'IND A' / Outlook : Positive
Long term issuer rating at ‘IND A’ / Outlook : Positive A+ A A- BBB+ BBB BBB- BB+ BB BB- FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Aug'23 Current Rating A Outlook Positive Last Review Aug’23 25
Slide 26: Market snapshot
Market snapshot Shareholding pattern as on 31st March 2024 As on Key Market Statistics st 31 March 2024 Public 27.8% BSE/NSE Ticker 517146 / USHAMART CMP (Rs) 318.35 Corporate Bodies 12.3% Market Cap (Rs Crore) 9,700 Number of outstanding shares (Crore) 30.47 Face Value 1.00 FPI 14.6% 52-week High /
Slide 27: Concall details
Concall details Usha Martin Ltd. Q4 & FY2024 Earnings Conference Call Date & Time: 29 April, 2024 at 2.00 PM IST To enable participants to connect to the conference call without having to wait for an operator, please register at the below mentioned link: Pre-registration You will receive dial in num
Slide 28: Contact us
Contact us About Us: Established in the year 1960, Usha Martin is a leading global and India’s No. 1 Mr. Anirban Sanyal (Chief Financial Officer) specialty steel wire rope solutions provider. The Company is also engaged in Usha Martin Limited the manufacturing of high-quality wires, low relaxation p
Slide 29: Thank You
Thank You usha martin