Usha Martin Limited · NSE:USHAMART
Usha Martin — Q1 FY24 Earnings Presentation
29 slides from Usha Martin's earnings presentation, Aug 5, 2023
Slide 1: Q1 FY24 Earnings Presentation
Specialty Wire Rope Solutions Provider Q1 FY24 Earnings Presentation August 5, 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
Company Overview 3
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: Q1FY24 Results Overview
Q1FY24 Results Overview
Slide 9: Key Financial Highlights – Consolidated Q1FY24
Key Financial Highlights – Consolidated Q1FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins 15.5% 18.0% 17.9% 855 814 759 154 146 117 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Shift (%) QoQ: 4.8% YoY: 7.3% Shift (%) QoQ: 5.4% YoY: 24.2% PBT Margins PAT Margins 13.6
Slide 10: Segmental Revenue Overview
Segmental Revenue Overview In Rs. crore Wire Rope Wire & Strand 598 86 553 79 481 65 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Shift (%) QoQ: 7.4% YoY: 15.0% Shift (%) QoQ: 17.8% YoY: 23.9% LRPC ▪ Segment wise contribution to overall sales Q1FY24 : 148 Wire Rope – 68% (PFY 67%); Wire &
Slide 11: Key Operational Highlights – Consolidated Q1FY24
Key Operational Highlights – Consolidated Q1FY24 Sales Volumes1 (‘000 MT) ▪ Marginal decrease in overall volumes during Q1FY24 47 47 44 ▪ Segment wise contribution to overall volumes Q1FY24 :Wire Rope – 52% (PFY 49%); Wire & Strand – 16% (PFY 19%); LRPC – 32% (PFY 32%) ▪ Increase in YoY rope volumes
Slide 12: Diversified presence across geographies and segments
Diversified presence across geographies and segments Revenue Segmentation for Q1FY24 Product End Industry1 Geography1 Fishing, 2% Others, 4% Others, 10% America, 7% Mining, 6% Engineering, 20% Wire & Strand, 8% Middle East & Africa, 11% Utilities, 5% Elevator, 7% India, 44% LRPC, 14% Asia Pacific, 1
Slide 13: Profitability indicators remain strong
Profitability indicators remain strong ROCE (%) ROE (%) 22.7% 21.2% 20.6% 19.2% 18.8% 18.8% 12.8% 11.3% FY21 FY22 FY23 Jun'23* FY21 FY22 FY23 Jun'23* Interest Coverage (x) Fixed Asset Turnover (x) 24.4 3.4 3.3 3.2 2.4 16.0 9.2 4.3 FY21 FY22 FY23 Jun'23 FY21 FY22 FY23 Jun'23^ Note 1: All figures ment
Slide 14: Discussion on Financial and Operational Performance
Discussion on Financial and Operational Performance Net Revenues ▪ Revenue from operations increased by 7.3% Y-o-Y to Rs. 814.4 crore in Q1FY24 o Despite a Y-o-Y decline in raw material prices, the Company reported an increase in revenues due to enhanced realizations resulting from value-added and s
Slide 15: Successfully Managing Raw-Material Volatility
Successfully Managing Raw-Material Volatility Steel Price (Rs. per tonne) 65,530 63,590 59,302 61,691 59,210 56,317 58,040 44,112 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Q1FY24 EBITDA/tonne2 (Rs.) 32,063 32,227 25,608 25,526 26,473 22,965 19,624 15,880 FY21 FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Q
Slide 16: PBT Bridge: Q1FY24
PBT Bridge: Q1FY24 In Rs. crore 38 -17 -12 17 129 103 ▪ Sales Realizations: Improvement in product portfolio and higher realizations from solution sales in Europe contributed to overall Q1 FY23 PBT Sales Realizations Sales Volume Consumption Others Q1 FY24 PBT improvement ▪ Sales Volume: Increase du
Slide 17: Balance Sheet remains significantly de-risked
Balance Sheet remains significantly de-risked Significant reduction in net debt despite capex spend of ~Rs. 68 crore In Rs. crore Gross Debt Net Debt 461 342 355 347 322 191 185 99 FY21 FY22 FY23 Jun'23 FY21 FY22 FY23 Jun'23 Gross Debt to Equity (x) Net Debt to Equity (x) 0.33 0.24 0.21 0.17 0.15 0.
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) 2.5 2.6 1,028 992 2.2 874 1.7 674 Mar-21 Mar-22 Mar-23 Jun-23 Mar-21 Mar-22 Mar-23 Jun-23 Net Working Ca
Slide 19: Management Comment
Management Comment Commenting on the performance Mr. Tapas Gangopadhyay, Non-Executive Director said: “We are delighted to report a strong year-on-year growth in EBITDA and profitability for Q1FY24. During the quarter, our Operating EBITDA increased by 24.2%, with EBITDA margins showing a notable ye
Slide 20: Annexure
SORT BRT ie Rs SANT
Slide 21: Abridged Consolidated P&L Statement
Abridged Consolidated P&L Statement In Rs. crore Q1FY24 Q1FY23 Y-o-Y Change (%) Q4FY23 Q-o-Q Change (%) Revenue from Operations 814.4 758.7 7.3% 855.2 -4.8% Operating EBITDA 145.7 117.3 24.2% 154.0 -5.4% Operating EBITDA Margin (%) 17.9% 15.5% 2.4 pps 18.0% -0.1 pps Operating EBITDA / ton^ (Rs.) 32,
Slide 22: Abridged Standalone P&L Statement
Abridged Standalone P&L Statement In Rs. crore Q1FY24 Q1FY23 Y-o-Y Change (%) Q4FY23 Q-o-Q Change (%) Revenue from Operations 500.6 515.6 -2.9% 511.2 -2.1% Operating EBITDA 91.1 70.7 28.9% 83.5 9.1% Operating EBITDA Margin (%) 18.2% 13.7% 4.5 pps 16.3% 1.9 pps Operating EBITDA / ton (Rs.) 24,084 17,
Slide 23: Key Financial Highlights – Standalone Q1FY24
Key Financial Highlights – Standalone Q1FY24 In Rs. crore Net Revenue from operations Operating EBITDA Margins Domestic Export 516 18.2% 511 501 16.3% 13.7% 180 173 177 91 84 71 336 338 324 Q1 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q4 FY23 Q1 FY24 Shift (%) QoQ: 2.1% YoY : 2.9% QoQ: 9.1% YoY: 28.9% PBT M
Slide 24: Key Operational Highlights – Standalone Q1FY24
Key Operational Highlights – Standalone Q1FY24 Sales Volumes1(‘000 MT) ▪ Marginal decrease in overall volumes during Q1FY24 Domestic Export ▪ Segment wise contribution to overall volumes Q1FY24 : Wire Rope – 45% (PFY 43%); Wire & Strand – 18% (PFY 19%); 40 39 38 LRPC – 37% (PFY 38%) 10 10 10 ▪ Incre
Slide 25: 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 25
Slide 26: Market snapshot
Market snapshot Shareholding pattern as on 30th June 2023 As on Key Market Statistics th 30 June 2023 Public 30.2% BSE/NSE Ticker 517146 / USHAMART CMP (Rs) 270.4 Corporate Bodies 13.4% Market Cap (Rs Crore) 8,246 Number of outstanding shares (Crore) 30.47 Face Value (Re.) 1.00 FPI 9.2% 52-week High
Slide 27: Concall details
Concall details Usha Martin Ltd. Q1FY24 Earnings Conference Call Time: August 8, 2023 at 5:00 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, passco
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 Usha Martin Limited the manufacturing of high-quality wires, low relaxation p
Slide 29: Thank You
Thank You f usha martin