Usha Martin Limited · NSE:USHAMART
Usha Martin — Q3 FY2014 Earnings Presentation
14 slides from Usha Martin's earnings presentation, April 2014
Slide 1: Usha Martin Q3 & 9M'14
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Slide 2: Economic Overview
Economic Overview The industrial sector continues to remain a concern due to recessionary trend in mining and manufacturing sectors. Negative growth in Capital Goods segment in consecutive 3rd year reflects on poor prospects. The automobile sector, a major contributor to the alloy steel demand
Slide 3: Trends in Industrial Growth
Trends in Industrial Growth FY' 11 FY' 12 FY' 13 FY' 14 (upto Nov'13) 10.0% 9.0% 8.2% 8.0% 6.0% 5.2% 5.5% 5.4% 10.00% 4.0% 4.0% 3.0% 8.20% 2.0% 1.3% 8.00% 0.0% Mining Manufacturing Electricity -0.6% 6.00% -2.0% -2.0% -2.4% -2.2% -4.0% 4.00% • Negative growth in mining continues in 3rd consecutive ye
Slide 4: Trends in Auto Sector
Trends in Auto Sector 50% 40% M&HCVs 30% 75,000 67,030 M&HCVs 65,629 20% 65,000 10% 52,425 0% 55,000 -10% 45,000 41,158 -20% -30% 35,000 Q4'FY13 Q1'FY14 Q2'FY14 Q3'FY14 -40% -50% Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 LCV 160,000 LCV M & HCVs Tractors PV LCV 154,470 140,00
Slide 5: ff usha martin
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Slide 6: Highlights 9M'14
Highlights 9M’14 • Pellet, Coke Oven and Beneficiation plants commissioned. • EBIDTA up by 18% on consolidated basis and 31% on stand alone basis. • Consolidated EBIDTA margin at 21.5 % and stand alone at 23.4%. • UML Iron Ore Mines bags 1st prize in Mines Safety Week competition conducted by DGMS.
Slide 7: Intermediate Products: Improved Volumes
Improved Volumes In ‘000 Metric Tonnes Particulars 9M’FY13 9M’FY14 Change % Comments Iron Ore • 100% requirement of minerals met 1,299 1,410 8.6% Minerals from captive mines, for Iron and Own DRI making. Coal 398 566 42.3% • Blast Furnace planned maintenance shut down for Intermediate Products Hot M
Slide 8: Attaining higher level of Billets Production / Month
Attaining higher level of Billets Production / Month Monthly production Qty in MT 80,000 of 75,000 MT, achieved 90% capacity utilisation 60,000 40,000 20,000 Q1'FY 14 (Avg) Q2'FY 14 (Avg) Oct' 13 Nov' 13 Dec' 13 • Achieved highest ever quarterly production at 185,000 MT. • Achieved highest ever mont
Slide 9: Improved Operating Parameters - Standalone
Improved Operating Parameters -Standalone Particulars Unit 9M’FY13 9M’FY14 Sales Realisation – Steel Rs per MT 44,850 39,900 EBIDTA margin to Net Sales (%) 18.1 23.4 EBIDTA Rs- Crs 407 534 - Steel Rs / Per Ton 6,850 9,450 - VA Products Rs / Per Ton 10,400 9,850 - Integrated Business Rs / Per Ton 10,
Slide 10: Integrated Business Performance against all odds
Integrated Business Performance against all odds Rs in Crs 30% 200 The continuing economic slowdown led to EBIDTA EBIDTA % 175 pressure on selling prices and profitability 25% 150 across all business segments. 20% 125 Reduced cost of production, helped by 15% 100 Higher productivity Q1'13 Q2'1
Slide 11: Key Developments & Challenges
Key Developments & Challenges Key Developments With the commissioning of the pellet plant and feed of Pellets to DRI, business model allows sale of products at various stages of production like DRI, Pig Iron, Pellets, Billets. Challenges Additional incremental volume in steel and poor market con
Slide 12: Financial Performance Q3 & 9M FY'14
Financial Performance Q3 & 9M FY’14 Rs in Crs Stand Alone Consolidated FY ’ 13 FY ‘ 14 FY ’ 13 FY ‘ 14 Q3 9M 12M Q3 9M Q3 9M 12M Q3 9M Net Sales 739.73 2242.93 3044.53 827.91 2277.45 889.05 2674.12 3621.83 965.38 2821.27 PBDIT 150.70 406.69 572.33 195.13 533.90 195.34 512.79 705.20 230.82 607.38 PBT
Slide 13: Architecture of Integrated Business
Architecture of Integrated Business Mineral Resource Power Module Iron Making Module Blast Furnace DRI Iron Ore Mine 71 MW 64 MW 600 KT 600 KT Crushing & Screening WHRB Thermal JSR JSR Sinter Plant O2 & Lime Coal Block – “A- C” grade Kiln Plant 800 KT Washing Plant 20 MW Thermal - Ranchi Coke Oven P
Slide 14: 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