Usha Martin Limited · NSE:USHAMART
Usha Martin — Q1 FY25 Earnings Presentation
24 slides from Usha Martin's earnings presentation, Aug 12, 2024
Slide 1: Q1 FY25 Earnings Presentation
Specialty Wire Rope Solutions Provider Q1 FY25 Earnings Presentation August 12, 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: Q1FY25 Results Overview
Q1FY25 Results Overview
Slide 4: Key financial highlights – Consolidated Q1 FY25
Key financial highlights – Consolidated Q1 FY25 In Rs. crore Net Revenue from operations Operating EBITDA Margins 17.9% 18.3% 18.6% 814 829 826 146 152 154 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Shift (%) QoQ: 0.3% YoY: 1.5% Shift (%) QoQ: 1.7% YoY: 5.7% PAT Margins ▪ Revenue from o
Slide 5: Revenue breakdown by segment
Revenue breakdown by segment In Rs. crore Wire Rope Wire & Strand 607 71 595 553 66 65 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Shift (%) QoQ: 2.1% YoY: 7.5% Shift (%) QoQ: 7.8% YoY: 8.9% LRPC ▪ Core Wire-Rope segment revenues increased by 7.5% Y-o-Y in Q1 FY25 116 ▪ Wire & Strand seg
Slide 6: Diversified presence across geographies and segments
Diversified presence across geographies and segments Revenue Segmentation for Q1FY25 Product End Industry1 Geography1 Others, 3% Fishing, 3% Others, 9% America, 10% Engineering, 20% Mining, 8% Wire & Strand, 8% Middle East & Africa, 8% Utilities, 4% LRPC, 11% India, 44% Elevator, 9% Construction & A
Slide 7: Profitability indicators remain strong
Profitability indicators remain strong ROCE (%) ROE (%) 21.2% 21.9% 20.8% 19.2% 18.8% 18.8% 19.2% 18.0% FY22 FY23 FY24 Jun'24* FY22 FY23 FY24 Jun'24* Interest Coverage (x) Fixed Asset Turnover (x) 23.2 21.2 3.4 3.2 16.0 2.7 2.6 9.2 FY22 FY23 FY24 Jun'24 FY22 FY23 FY24 Jun'24^ ^ LTM Note 1: All figur
Slide 8: Successfully managing raw-material volatility
Successfully managing raw-material volatility Steel Price (Rs. per tonne) 59,210 55,362 55,392 54,106 53,109 51,913 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 Q1FY25 EBITDA/tonne2 (Rs.) 34,018 32,628 32,227 32,299 31,784 31,178 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY24 Q1FY25 Note 1: All figures mentioned in the slide
Slide 9: Balance sheet remains significantly de-risked
Balance sheet remains significantly de-risked In Rs. crore Gross Debt Net Debt 355 347 317 191 185 292 124 73 FY22 FY23 FY24 Jun'24 FY22 FY23 FY24 Jun'24 Gross Debt to Equity (x) Net Debt to Equity (x) 0.11 0.21 0.09 0.17 0.12 0.13 0.05 0.03 FY22 FY23 FY24 Jun'24 FY22 FY23 FY24 Jun'24 Note 1: All fi
Slide 10: Long term issuer rating upgraded to 'IND A+' / Outlook: Stable
Long term issuer rating upgraded to ‘IND A+’ / Outlook : Stable A+ A A- BBB+ BBB BBB- BB+ BB BB- FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Aug'24 Current Rating A+ ▪ India Ratings and Research Pvt. Ltd. has upgraded Usha Martin Ltd.’s long-term issuer rating from 'IND Outlook Stable A/Positive' to 'IND A+
Slide 11: Net working capital to turnover remains steady
Net working capital to turnover remains steady Current Ratio (x) Net Working Capital (Rs. Crore) 1,089 1,108 2.9 1,028 2.5 2.7 874 2.2 Mar-22 Mar-23 Mar-24 Jun-24 Mar-22 Mar-23 Mar-24 Jun-24 Net Working Capital to Turnover (LTM, %) 32.8% 32.4% 28.8% 29.1% Mar-22 Mar-23 Mar-24 Jun-24 Note 1: All figu
Slide 12: Strategic near-term growth drivers
Strategic near-term growth drivers International Demand Drivers Key markets including South America, Middle-East and ASEAN region to strengthen performance OEM approvals and successful project references to drive performance in U.S. and Europe Opportunities in the oil & offshore sectors, inclu
Slide 13: Management comment
Management comment Commenting on the performance Mr. Rajeev Jhawar, Managing Director said: “In the backdrop of challenging macroeconomic conditions, Usha Martin commenced FY25 on a positive note, reporting revenues of ~Rs. 826 crore and achieving an operating EBITDA margin of 18.6%. Our core wire r
Slide 14: Annexure
Annexure 14
Slide 15: Abridged Consolidated P&L Statement
Abridged Consolidated P&L Statement In Rs. crore Q1 FY25 Q1 FY24 Y-o-Y Change (%) Q4 FY24 Q-o-Q Change (%) Revenue from Operations 826.4 814.4 1.5% 829.0 -0.3% Operating EBITDA 154.0 145.7 5.7% 151.5 1.7% Operating EBITDA Margin (%) 18.6% 17.9% 0.8 pps 18.3% 0.4 pps Operating EBITDA / ton^ (Rs.) 32,
Slide 16: Abridged Standalone P&L Statement
Abridged Standalone P&L Statement In Rs. crore Q1 FY25 Q1 FY24 Y-o-Y Change (%) Q4 FY24 Q-o-Q Change (%) Revenue from Operations 514.1 500.6 2.7% 515.1 -0.2% Operating EBITDA 101.4 91.1 11.3% 97.0 4.6% Operating EBITDA Margin (%) 19.7% 18.2% 1.5 pps 18.8% 0.9 pps Operating EBITDA / ton (Rs.) 24,792
Slide 17: Key operational highlights – Consolidated Q1FY25
Key operational highlights – Consolidated Q1FY25 Sales Volumes1 (‘000 MT) 44 47 46 ▪ Increase in overall volumes YoY, primarily due to an increase in Wire Rope and Wire & Strand volumes ▪ Segment wise contribution to overall volumes Q1 FY25: o Wire Rope – 53% (FY24: 52%) o Wire & Strand – 19% (FY24:
Slide 18: Key operational highlights – Standalone Q1 FY25
Key operational highlights – Standalone Q1 FY25 Sales Volumes1 (‘000 MT) ▪ Increase in overall volumes YoY, primarily due to an Domestic Export increase in Wire Rope and Wire & Strand volumes 38 40 41 10 10 11 ▪ Segment wise contribution to overall volumes Q1 FY25: 29 30 o Wire Rope – 48% (FY24: 47%
Slide 19: Key financial highlights – Standalone Q1 FY25
Key financial highlights – Standalone Q1 FY25 In Rs. crore Net Revenue from operations Operating EBITDA Margins 18% 19% 20% Domestic Export 501 515 514 177 184 187 91 97 101 324 331 327 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Shift (%) QoQ: 0.2% YoY : 2.7% Shift (%) QoQ: 4.6% YoY: 11.3
Slide 20: Globally recognized certifications and licenses
Globally recognized certifications and licenses ISO 45001: 2018 ISO 14001: 2015 Certificate of Authority issued by ISO 9001: 2015 Occupational Health & Safety Environmental management American petroleum Quality management systems institute Systems Approved Manufacturer of DGMS Manufacturing Japan -
Slide 21: Market snapshot
Market snapshot Shareholding pattern as on 30th June 2024 As on Key Market Statistics 30th June 2024 Public 29.3% BSE/NSE Ticker 517146 / USHAMART CMP (Rs) 387.50 Market Cap (Rs Crore) 11,808 Corporate Bodies 12.2% Number of outstanding shares (Crore) 30.47 Face Value 1.00 FPI 14.0% 52-week High / L
Slide 22: Concall details
Concall details Usha Martin Ltd. Q1 FY25 Earnings Conference Call Time: August 14, 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 numbers, pass
Slide 23: Contact us
Contact us About Us: Established in the year 1960, Usha Martin is a leading global and India’s No. 1 Mr. Abhijit Paul (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 pre
Slide 24: Thank You
Thank You f usha martin