Slide 1: Q2 & H1 FY24 Earnings Presentation
Specialty Wire Rope Solutions Provider Q2 & H1 FY24 Earnings Presentation 3rd November, 2023
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: Q2 & H1 FY24 Results Overview
Q2 & H1 FY24 Results Overview
Slide 9: Key Financial Highlights – Consolidated Q2 & H1 FY24
Key Financial Highlights – Consolidated Q2 & H1 FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 14% 18% 18% 15% 18% 1,579 1,599 290 232 820 814 785 146 144 115 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Shift (%) QoQ: 3.6% YoY: 4.3% 1.3
Slide 10: Segmental revenue overview for consolidated business
Segmental revenue overview for consolidated business In Rs. crore Wire Rope Wire & Strand 1,108 177 1,035 134 553 553 554 92 65 69 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Shift (%) QoQ: 0.2% YoY : 0.2% 7.1% Shift (%) QoQ: 5.5% YoY: 24.9% 24.4% Increase
Slide 11: Key Operational Highlights – Consolidated Q2 & H1 FY24
Key Operational Highlights – Consolidated Q2 & H1 FY24 Sales Volumes1 (‘000 MT) Decrease in overall volumes YoY, primarily due to a 97 89 decline in LRPC and Wire volumes Segment wise contribution to overall volumes H1FY24: 50 44 45 Wire Rope – 52% (H1FY23 47%) Wire & Strand – 17% (H1FY23 19
Slide 12: Diversified presence across geographies and segments
Diversified presence across geographies and segments Revenue Segmentation for H1 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 13: Profitability indicators remain strong
Profitability indicators remain strong ROCE (%) ROE (%) 22.7% 23.8% 21.2% 21.4% 19.2% 20.6% 18.8% 18.8% FY22 FY23 June 23* Sept. 23* FY22 FY23 June 23* Sept. 23* Interest Coverage (x) Fixed Asset Turnover Ratio (x) 24.4 24.0 3.4 3.3 3.2 3.2 16.0 9.2 FY22 FY23 June 23 Sept. 23 FY22 FY23 June 23^ Sept
Slide 14: Discussion on Financial and Operational Performance
Discussion on Financial and Operational Performance Net Revenues Revenue from operations increased by 1.3% Y-o-Y in H1FY24 to Rs. 1,599.1 crore. In Q2FY24, revenues stood at Rs. 784.7 crore, registering a 4.3% Y-o-Y de-growth o Despite a Y-o-Y decline in both sales volumes and raw material prices,
Slide 15: Successfully Managing Raw-Material Volatility
Successfully Managing Raw-Material Volatility Steel Price (Rs. per tonne) 65,530 64,560 63,590 59,302 59,210 58,040 57,317 55,362 Q1FY23 Q2FY23 H1 FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 H1 FY24 EBITDA/tonne2 (Rs.) 32,063 32,227 31,178 31,698 25,608 24,237 25,526 22,965 Q1FY23 Q2FY23 H1FY23 Q3FY23 Q4FY23 Q
Slide 16: Consolidated PBT Bridge
Consolidated PBT Bridge In Rs. crore 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 Sales Volume: In Q2 FY24, LRPC volume
Slide 17: Balance Sheet remains significantly de-risked
Balance Sheet remains significantly de-risked In Rs. crore Gross Debt Net Debt 355 347 348 191 185 134 322 99 FY22 FY23 June 23 Sept. 23 FY22 FY23 June 23 Sept. 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 June 23 Sept. 23 FY22 FY23 June 23 Sep
Slide 18: NWC to turnover steady through active rationalization of inventory
NWC to turnover steady through active rationalization of inventory Continuous focus on optimizing working capital to reduce cash conversion cycle Current Ratio (x) Net Working Capital (Rs. Crore) 2.6 2.6 1,028 992 1,001 2.5 874 2.2 FY22 FY23 June 23 Sept.23 FY22 FY23 June 23 Sept. 23 Net Working Cap
Slide 19: Significant improvement in Cash flows
Significant improvement in Cash flows In Rs. crore Operating Cash Flow (OCF) before Income Tax and % to EBITDA2 107% 345 311 67% 41% ▪ Healthy OCF generation supports Company’s 96 capital allocation plans 1HFY23 FY23 1HFY24 ▪ The OCF to EBITDA2 in H1FY24 recorded a healthy improvement, standing at 1
Slide 20: Management Comment
Management Comment Commenting on the performance Mr. Tapas Gangopadhyay, Non-Executive Director said: “We are pleased to report a strong first half, characterized by significant operational advancements and robust growth in overall profitability. Notably, during Q2FY24, our Operating EBITDA grew by
Slide 21: Annexure
SRE VETTINU: TERRE “a
Slide 22: Abridged Consolidated P&L Statement
Abridged Consolidated P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y Q2 FY24 Q2 FY23 Q1 FY24 H1 FY24 H1 FY23 Change (%) Change (%) Change (%) Revenue from Operations 784.7 820.2 -4.3% 814.4 -3.6% 1,599.1 1,578.9 1.3% Operating EBITDA 144.3 115.0 25.5% 145.7 -0.9% 290.0 232.4 24.8% Operating EBITDA Mar
Slide 23: Abridged Standalone P&L Statement
Abridged Standalone P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y Q2 FY24 Q2 FY23 Q1 FY24 H1 FY24 H1 FY23 Change (%) Change (%) Change (%) Revenue from Operations 498.4 518.8 -3.9% 500.6 -0.4% 999.0 1,034.4 -3.4% Operating EBITDA 99.9 68.0 46.8% 91.1 9.6% 191.0 138.7 37.7% Operating EBITDA Margin (%)
Slide 24: Key Financial Highlights – Standalone Q2 & H1 FY24
Key Financial Highlights – Standalone Q2 & H1 FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 13% 18% 20% 13% 19% Domestic Export 1,034 999 346 354 191 519 501 498 139 91 100 166 177 177 688 645 68 353 324 321 Q2 FY23 Q1 FY24 Q2 FY24 H1 FY23 H1 FY24 Q2 FY23 Q1 FY24 Q2 FY24 H1
Slide 25: Key Operational Highlights – Standalone Q2 & H1 FY24
Key Operational Highlights – Standalone Q2 & H1 FY24 Sales Volumes1 (‘000 MT) Decrease in overall volumes YoY, primarily due to a decline in Domestic Export LRPC volumes 80 77 Segment wise contribution to overall volumes H1FY24: 20 21 41 38 39 Wire Rope – 46% (H1FY23 42%) 9 32 10 28 10 28 61 5
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 30th Sept. 2023 As on Key Market Statistics th 30 Sept. 2023 Public 29.5% BSE/NSE Ticker 517146 / USHAMART CMP (Rs) 343.35 Corporate Bodies 11.8% Market Cap (Rs Crore) 9,837 Number of outstanding shares (Crore) 30.47 Face Value 1.00 FPI 11.9% 52-week High /
Slide 28: Concall details
Concall details Usha Martin Ltd. Q2 & H1FY2024 Earnings Conference Call Date & Time: November 6, 2023 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