Usha Martin Limited · NSE:USHAMART
Usha Martin — Q3 FY2013 Earnings Presentation
17 slides from Usha Martin's earnings presentation, 2013
Slide 1: Usha Martin Q3 & 9M'13
f usha martin Q3 & 9M’ 13
Slide 2: Economic Overview
Economic Overview Global uncertainty continues to impact economic environment, severely impacting growth of global steel demand, driven by a sharp demand contraction in Europe and slower growth in Asia and North America. Excess global capacity can create futher trade distortion Higher interest
Slide 3: Business Profile 9M FY'13
Business Profile 9M FY’13 Gross Level of Activities – Rs 4,086 Crs Others VA - Services VA - Distb 2% 3% 8% VA - Mfg Steel 35% 52% Net Turnover (Rs in Crs) 9M’ FY 13 9M FY’12 Stand Alone 2,243 2,006 Consolidated 2,674 2,406
Slide 4: Revenue Distribution
Revenue Distribution 2.9% 50.0% America 2.9% 45.0% 41.5% 4.5% 40.0% 43.2% 36.0% Middle East & Africa 4.9% 35.0% 36.0% 10.3% 30.0% Europe 9.4% 25.0% 20.0% 16.2% 11.2% Asia Pacific 15.0% 10.8% 15.4% 10.0% 71.2% 3.4% India 5.0% 2.9% 71.9% 2.2% 3.3% 0.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% Steel Wire Ro
Slide 5: Architecture of Integrated Business
Architecture of Integrated Business Mineral Resource Power Module Iron Making Module 48.3 MW 55 MW Blast Furnace DRI Iron Ore Mine Thermal Crushing & Screening WHRB JSR 600 KT 500 KT 26 MW 9 MW Coal Block – “A- C” grade WHRB Thermal Sinter Plant O2 & Lime 800 KT Kiln Plant 20 MW Thermal - Ranchi Was
Slide 6: Global Footprint
Global Footprint Glasgow ,UK Aberdeen, UK Nottinghamshire,UK Rotterdam Houston Norway Iron Ore & Coal Mines (Jharkhand) Baku Canada London Agra Vietnam Kolkata Hoshiarpur Jakarta Australia Dubai Singapore Ranchi Bangkok Jamshedpur Manufacturing Facilities Distribution Centers Corporate Office Sales
Slide 7: Consolidated Key Financials Trend
Consolidated Key Financials Trend Rs in Crs Particulars 07-08(A) 08-09 (A) 09-10 (A) 10-11 (A) 11-12 (A) Trail 12M Net Turnover 2,309 2,950 2,514 3,046 3,361 3,629 PBDIT 445 531 495 595 498 666 PBT 247 281 240 204 11 97 PAT 175 185 169 137 4 72 Cash Profit 278 271 347 383 214 320 ROCE (%) 20.1% 24.1
Slide 8: ff usha martin
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Slide 9: Highlights Q3 & 9M'13
Highlights Q3 & 9M’13 • Turnover increased by 11% on consolidated basis & 12% on stand alone over 9M’12 • Consolidated EBITDA margin at 19.2 % • Mining operations performed better , Iron ore & Coal Production up by 17 % and 93% respectively • Achieved 150,000 MT of Billet Production in the quarter •
Slide 10: Production Volume Growth Consolidated
Production Volume Growth Consolidated Rolled Bright Wires & Wire Billets Products Bars Strands Ropes QoQ Q o PQ 150,207 MT 135,677 MT 2,799 MT 33,740 MT 22,090 MT 7 11 1 2 17 7 9 6 1 10 % % % % % % % % % % 9M o 9M 435,442 MT 408,097 MT 9,156 MT 98,561 MT 71,511 MT 6 1 4 15 6 22 % % % % % %
Slide 11: Production Performance
Production Performance QoQ QoPQ QoPQ 34 % 5% 45 % 140000 600000 105000 400000 70000 200000 35000 0 0 Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13 Coal Iron Ore QoQ QoPQ QoQ QoPQ 5% 14 % 12 % 27 % 140000 80000 105000 60000 70000 40000 35000 20000 0 0 Q3 FY12 Q2 FY13 Q3 FY13 Q3 FY12 Q2 FY13 Q3 FY13
Slide 12: Production Performance
Production Performance 400000 1400000 93 % 17 % 300000 1050000 200000 700000 100000 350000 0 0 9M FY12 9M FY13 9M FY12 9M FY13 Coal Iron Ore 400000 200000 300000 13 % 21 % 150000 200000 100000 100000 50000 0 0 9M FY12 9M FY13 9M FY12 9M FY13 Hot Metal DRI
Slide 13: Forex Accounting Practices
Forex Accounting Practices The effect of fluctuation in value of FCY assets and liabilities were accounted for as under: Accounting On Loan Exposure On Trade Exposure Period / Qrtr Previous Year 2011 - 12 Q1’12 • Shown as normal item (pre EBITDA) in P&L A/c • Shown as normal item (pre EBITDA) in P&L
Slide 14: Summarised Results Consolidated Stand Alone
Summarised Results Current Forex Accounting Practice for change in valuation of FCY assets and liabilities is as under: • On Capex Loans – Routed through Fixed Assets • On Other Loans – Ammortised over maturity period of loan • On Trade Exposure – Routed through Profit & Loss A/C Applying the Curren
Slide 15: Looking Forward
Looking Forward • Implementation of new projects to further enhance competitiveness in specialty segment – Beneficiation, Pellet, Coke Oven and 35 MW Power are underway • The company has created a R&D and Distribution centre in Italy for wire ropes under Usha Martin International Limited a subsidiar
Slide 16: Project Status
Project Status Major Projects Completion Status DRI – 5 Commissioned 30 MW CPP ( With DRI - 5) Commissioned DRI – 4 Commissioned Coke Oven with 35 MW Power Plant Q4 FY’ 13 / Q1 FY’14 Pellet Plant H1 FY’ 14
Slide 17: Disclaimer
Disclaimer: This presentation may contain forward looking information that involves risk and uncertainties. Such projections and forward looking statements reflect various assumptions of management concerning future performance of the Company, and are subject to significant business, economic, envir