Slide 1: Q4 & FY23 Earnings Presentation
Specialty Wire Rope Solutions Provider Q4 & FY23 Earnings Presentation April 27, 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
~ air o.'5 a} (oe (be)
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 Continents High-quality wires 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: Q4 & FY23 Results Overview
Q4 & FY23 Results Overview
Slide 9: Key Financial Highlights – Consolidated Q4 & FY23
Key Financial Highlights – Consolidated Q4 & FY23 In Rs. crore Net Revenue from operations Operating EBITDA Margins 13.9% 15.2% 18.0% 14.3% 15.7% 3,268 513 2,688 384 767 834 855 127 154 107 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Shift (%) QoQ: 2.6% YoY: 11.6% 21.6%
Slide 10: Segmental Revenue Overview
Segmental Revenue Overview In Rs. crore Wire Rope Wire & Strand 2,194 339 327 1,640 562 598 95 83 79 451 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Shift (%) QoQ: 6.4% YoY: 32.6% 33.8% Shift (%) QoQ: (4.8%) YoY: (16.8%) 3.7% LRPC Segment wise contribution to ov
Slide 11: Key Operational Highlights – Consolidated Q4 & FY23
Key Operational Highlights – Consolidated Q4 & FY23 Sales Volumes1 (‘000 MT) Increase in rope volumes and marginal decrease in 189 192 wire and LRPC volumes in line with the Company’s strategy to focus on value added products and exit low contributory segments 53 49 47 Segment wise contribution
Slide 12: Diversified presence across geographies and segments
Diversified presence across geographies and segments Revenue Segmentation for FY23 Product End Industry1 Geography1 Fishing, Others, 3% Others, 7% 2% America, 8% Mining, 4% Wire & Strand, 10% Engineering, 25% Utilities, 4% Middle East & Africa, 9% Elevator, 8% India, 45% LRPC, 15% Asia Pacific, 16%
Slide 13: Profitability indicators remain strong
Profitability indicators remain strong ROCE (%) ROE (%) 21.2% 18.8% 18.8% 19.2% 12.8% 11.3% FY21 FY22 FY23 FY21 FY22 FY23 Interest Coverage (x) Fixed Asset Turnover Ratio (x) 16.0 3.4 3.2 2.4 9.2 4.3 FY21 FY22 FY23 FY21 FY22 FY23 Note 1: All figures mentioned in the slide are consolidated financials
Slide 14: Discussion on Financial and Operational Performance
Discussion on Financial and Operational Performance Net Revenues Revenue from operations increased by 21.6% Y-o-Y in FY23 to Rs. 3,267.8 crore. In Q4FY23, revenues stood at Rs. 855.2 crore, registering a 11.6% Y-o-Y growth o The Company reported an increase in revenues on account of improved reali
Slide 15: Successfully Managing Raw-Material Volatility
Successfully Managing Raw-Material Volatility Steel Price/tonne (Rs.) 65,530 63,590 59,302 58,040 61,691 56,317 44,112 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 EBITDA/tonne2 (Rs.) 32,063 25,608 25,526 26,473 22,965 19,624 15,880 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Note 1: All figures mentio
Slide 16: PBT Bridge: Q4 & FY23
PBT Bridge: Q4 & FY23 In Rs. crore 132 -321 448 -150 Sales Realizations: Overall 455 346 improvement was achieved through enhancements in the product portfolio and increased realizations from solution sales in Europe FY22 PBT Sales Realizations Sales Volume Consumption Others FY23 PBT Sales Volu
Slide 17: Balance Sheet remains significantly de-risked
Balance Sheet remains significantly de-risked In Rs. crore Gross Debt Net Debt 461 342 355 347 191 185 FY21 FY22 FY23 FY21 FY22 FY23 Gross Debt to Equity (x) Net Debt to Equity (x) 0.33 0.24 0.21 0.17 0.11 0.09 FY21 FY22 FY23 FY21 FY22 FY23 Note 1: All figures mentioned in the slide are consolidated
Slide 18: NWC to turnover steady despite increase in revenue
NWC to turnover steady despite increase in revenue through active rationalization of inventory Continuous focus on optimizing working capital to reduce cash conversion cycle Current Ratio (x) Net Working Capital (Rs. Crore) 2.5 1,028 2.2 874 1.7 674 Mar-21 Mar-22 Mar-23 Mar-21 Mar-22 Mar-23 Net Work
Slide 19: Management Comment
Management Comment Commenting on the performance, Mr. Tapas Gangopadhyay, Director said: “We have ended the year on a strong note, delivering healthy revenue and operating EBITDA growth of 22% and 34%, respectively, during FY23. Our international operations, which made up 55% of our FY23 revenue, re
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 4QFY23 4QFY22 3QFY23 FY23 FY22 Change (%) Change (%) Change (%) Revenue from Operations 855.2 766.6 11.6% 833.6 2.6% 3,267.8 2,688.1 21.6% Operating EBITDA 154.0 106.7 44.3% 127.0 21.2% 513.3 383.7 33.8% Operating EBITDA Margin (%) 1
Slide 22: Abridged Standalone P&L Statement
Abridged Standalone P&L Statement In Rs. crore Y-o-Y Q-o-Q Y-o-Y 4QFY23 4QFY22 3QFY23 FY23 FY22 Change (%) Change (%) Change (%) Revenue from Operations 511.2 514.7 -0.7% 496.1 3.1% 2,041.7 1,810.1 12.8% Operating EBITDA 83.5 72.5 15.2% 75.8 10.2% 298.0 251.3 18.6% Operating EBITDA Margin (%) 16.3%
Slide 23: Key Financial Highlights – Standalone Q4 & FY23
Key Financial Highlights – Standalone Q4 & FY23 In Rs. crore Net Revenue from operations Operating EBITDA Margins Domestic Export 2,042 1,810 16.3% 15.3% 14.6% 14.1% 13.9% 667 562 298 251 515 496 511 1,248 1,375 147 148 173 72 76 84 368 348 338 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 FY22 Q3 FY23 Q4 FY
Slide 24: Key Operational Highlights – Standalone Q4 & FY23
Key Operational Highlights – Standalone Q4 & FY23 ( in ‘000 MT ) Increase in rope volumes especially exports and marginal Sales Volumes1(‘000 MT) decrease in LRPC volumes in line with the company’s strategy Domestic Export to focus on international markets, value added products and 157 159 exit lo
Slide 25: Long term issuer rating at 'IND A' / Outlook: Positive
Long term issuer rating at ‘IND A’ / Outlook : Positive Short term issuer rating at ‘IND A1’ A+ A A- BBB+ BBB BBB- BB+ BB BB- FY'18 FY'19 FY'20 FY'21 FY'22 Aug'22 Current Rating A Outlook Positive Last Review Aug’22 25
Slide 26: Market snapshot
Market snapshot Shareholding pattern as on 31st March 2023 As on Key Market Statistics st 31 March 2023 Public 29.4% BSE/NSE Ticker 517146 / USHAMART CMP (Rs) 214.5 Corporate Bodies 13.7% Market Cap (Rs Crore) 6,537 Number of outstanding shares (Crore) 30.47 Face Value 1.00 FPI 9.4% 52-week High / L
Slide 27: Concall details
Concall details Usha Martin Ltd. Q4 & FY2023 Earnings Conference Call Time: May 3, 2023 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 28: 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 Mr. Anil Kumar (Secretary to CFO) the manufacturing of high-quality wires,
Slide 29: Thank You
Thank You usha martin