Usha Martin Limited · NSE:USHAMART
Usha Martin — Q3 FY2024 Earnings Presentation
30 slides from Usha Martin's earnings presentation, Feb 6, 2024
Slide 1: Q3 & 9M FY24 Earnings Presentation
Specialty Wire Rope Solutions Provider Q3 & 9M FY24 Earnings Presentation 6th February, 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: Our vision echoes our long-term growth agenda
Our vision echoes our long-term growth agenda To be the global leader in the wire rope industry by delivering customer delight, adopting modern technology and ensuring sustainable growth for all of its stakeholders 7
Slide 8: Q3 & 9M FY24 Results Overview
Q3 & 9M FY24 Results Overview
Slide 9: Key Financial Highlights – Consolidated Q3 & 9M FY24
Key Financial Highlights – Consolidated Q3 & 9M FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 15% 18% 20% 15% 19% 2,413 2,396 447 359 834 785 797 144 157 127 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Shift (%) QoQ: 1.6% YoY: 4.4% 0.7
Slide 10: Segmental revenue overview for consolidated business
Segmental revenue overview for consolidated business In Rs. crore Wire Rope Wire & Strand 1,669 260 1,596 208 562 554 561 83 69 74 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Shift (%) QoQ: 1.2% YoY : 0.1% 4.6% Shift (%) QoQ: 7.8% YoY: 10.6% 20.0% LRPC Cor
Slide 11: Diversified presence across geographies and segments
Diversified presence across geographies and segments Revenue Segmentation for 9M FY24 Product End Industry1 Geography1 Fishing, 3% Others, 3% Others, 9% America, 6% Mining, 5% Engineering, 22% Wire & Strand, 9% Middle East & Africa, 10% Utilities, 5% Elevator, 7% Asia Pacific, 15% India, 45% LRPC, 1
Slide 12: Profitability indicators remain strong
Profitability indicators remain strong ROCE (%) ROE (%) 23.8% 22.7% 21.2% 21.4% 19.2% 20.1% 18.8% 18.8% FY22 FY23 Sept. 23* Dec. 23* FY22 FY23 Sept. 23* Dec. 23* Interest Coverage (x) Fixed Asset Turnover Ratio (x) 24.0 23.8 3.4 3.2 3.2 2.9 16.0 9.2 FY22 FY23 Sept. 23 Dec. 23 FY22 FY23 Sept. 23^ Dec
Slide 13: Discussion on Financial and Operational Performance
Discussion on Financial and Operational Performance Net Revenues Revenue from operations decreased by 0.7% Y-o-Y in 9MFY24 to Rs. 2,396.2 crore. In Q3FY24, revenues stood at Rs. 797.1 crore, registering a 4.4% Y-o-Y de-growth o The core Wire-Rope segment revenues remained steady despite Y-o-Y redu
Slide 14: Successfully Managing Raw-Material Volatility
Successfully Managing Raw-Material Volatility Steel Price (Rs. per tonne) 63,590 62,847 59,302 59,210 58,040 55,362 56,218 54,106 Q2FY23 Q3FY23 9M FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 9M FY24 EBITDA/tonne2 (Rs.) 32,063 32,227 34,018 32,478 31,178 25,526 24,695 22,965 Q2FY23 Q3FY23 9M FY23 Q4FY23 Q1FY24
Slide 15: Consolidated PBT Bridge
Consolidated PBT Bridge In Rs. crore 79 -9 140 110 3 -43 Sales Realizations: Despite a Y-o-Y decline in raw material prices, revenue performance was supported by increased realizations in wire rope segment. This was achieved through a sustained emphasis on value-added offerings and continued contr
Slide 16: Balance Sheet remains significantly de-risked
Balance Sheet remains significantly de-risked In Rs. crore Gross Debt Net Debt 355 347 348 191 342 185 134 110 FY22 FY23 Sept. 23 Dec. 23 FY22 FY23 Sept. 23 Dec. 23 Gross Debt to Equity (x) Net Debt to Equity (x) 0.11 0.21 0.09 0.17 0.16 0.15 0.06 0.05 FY22 FY23 Sept. 23 Dec. 23 FY22 FY23 Sept. 23 D
Slide 17: Continuous focus on managing working capital
Continuous focus on managing working capital Current Ratio (x) Net Working Capital (Rs. Crore) 2.7 1,028 1,001 1,063 2.5 2.6 2.2 874 FY22 FY23 Sept.23 Dec.23 FY22 FY23 Sept. 23 Dec. 23 Net Working Capital to Turnover (LTM, %) 30.4% 32.0% 28.8% 29.1% FY22 FY23 Sept. 23 Dec. 23 Note 1: All figures men
Slide 18: 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% 60% 420 345 214 Healthy OCF generation supports Company’s capital allocation plans 9MFY23 FY23 9MFY24 The OCF to EBITDA2 in 9MFY24 recorded a healthy improvement, standing at 94% c
Slide 19: Management Comment
Management Comment Commenting on the performance Mr. Tapas Gangopadhyay, Non-Executive Director said: “We are pleased to share the financial results for Q3 & 9MFY24 where we made considerable progress on our planned initiatives. Our strategic focus on high value wire ropes have ensured continued str
Slide 20: Annexure
SRE VETTINU: TERRE “a
Slide 21: Abridged Consolidated P&L Statement
Abridged Consolidated P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y Q3 FY24 Q3 FY23 Q2 FY24 9M FY24 9M FY23 Change (%) Change (%) Change (%) Revenue from Operations 797.1 833.6 -4.4% 784.7 1.6% 2,396.2 2,412.5 -0.7% Operating EBITDA 157.1 127.0 23.7% 144.3 8.8% 447.1 359.4 24.4% Operating EBITDA Marg
Slide 22: Abridged Standalone P&L Statement
Abridged Standalone P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y Q3 FY24 Q3 FY23 Q2 FY24 9M FY24 9M FY23 Change (%) Change (%) Change (%) Revenue from Operations 532.0 496.1 7.2% 498.4 6.7% 1,531.0 1,530.5 0.0% Operating EBITDA 112.3 75.8 48.1% 99.9 12.4% 303.3 214.5 41.4% Operating EBITDA Margin (%
Slide 23: Key Operational Highlights – Consolidated Q3 & 9M FY24
Key Operational Highlights – Consolidated Q3 & 9M FY24 Sales Volumes1 (‘000 MT) Decrease in overall volumes YoY, primarily due to a 146 134 decline in LRPC and Wire & Strand volumes Segment wise contribution to overall volumes 9MFY24: 49 45 45 Wire Rope – 52% (9MFY23: 47%) Wire & Strand – 18
Slide 24: Key Operational Highlights – Standalone Q3 & 9M FY24
Key Operational Highlights – Standalone Q3 & 9M FY24 Sales Volumes1 (‘000 MT) Decrease in overall volumes YoY, primarily due to a decline Domestic Export in LRPC volumes 120 117 Segment wise contribution to overall volumes 9MFY24: 28 32 40 39 40 Wire Rope – 47% (9MFY23: 41%) 92 8 32 10 28 11 2
Slide 25: Key Financial Highlights – Standalone Q3 & 9M FY24
Key Financial Highlights – Standalone Q3 & 9M FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 15% 20% 21% 14% 20% Domestic Export 1,530 1,531 303 494 547 215 496 498 532 100 112 1,036 984 76 148 177 192 348 321 340 Q3 FY23 Q2 FY24 Q3 FY24 9M FY23 9M FY24 Q3 FY23 Q2 FY24 Q3 FY2
Slide 26: 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 26
Slide 27: Market snapshot
Market snapshot Shareholding pattern as on 31st Dec. 2023 As on Key Market Statistics st 31 Dec. 2023 Public 28.2% BSE/NSE Ticker 517146 / USHAMART CMP (Rs) 296.20 Corporate Bodies 12.4% Market Cap (Rs Crore) 9,026 Number of outstanding shares (Crore) 30.47 Face Value 1.00 FPI 12.7% 52-week High / L
Slide 28: Concall details
Concall details Usha Martin Ltd. Q3 & 9MFY2024 Earnings Conference Call Date & Time: February 7, 2024 at 3.30 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
Slide 29: 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 30: Thank You
Thank You usha martin