With more than 60 years of experience, Usha Martin is among the top producers of speciality steel wire ropes in the world. The company provides a wide selection of goods, such as speciality wire ropes, premium wires, LRPC, end-fitments that are made to order, accessories, and related services. Oil and gas, ports, cranes, lifts, mining, fishing, renewable energy, building and infrastructure, and general engineering are just a few of the industries that use these goods.
In order to improve its commercial relationships, the company holds a conference call to discuss its FY2023 earnings for the community of analysts and investors. According to Rajeev Jhawar, MD of Usha Martin Ltd., "Our goal is to hold such forums regularly in the future with the aim of increasing transparency and building a stronger relationship with the investors and analyst community."
Along with sites abroad in Thailand, the United Arab Emirates, and the United Kingdom, Usha Martin has production facilities in India. The business strategy focuses on stocking and selling through its own distribution hubs in Southeast Asia, Australia, Europe, the US, and the United Arab Emirates, as well as making some direct sales from the facility. UML has specialised service centres where they add value by cutting, socketing, testing, inspecting, and other processes. The business also operates a global R&D facility in Italy where it develops its own software for designing wire ropes.
Additionally, Rajeev Jhawar Usha Martin provided information on how Usha Martin reduced their business's debt. Usha Martin formerly worked in the steel manufacturing industry, which was adversely affected by both the severe industry slump and the Company's high level of borrowing. To overcome these difficulties, they decided to sell off the steel company through a slump sale. It is significant to note that the Company never experienced a default, did not seek a debt restructure, and received no lender haircut. Through this effort, the company was able to drastically reduce its debt and improve its financial and operational situation. Despite the fact that it was a difficult choice at the time, it assisted in our transition from a commodities firm to a value-added, high ROC business, Rajeev Jhawar said. Due to this, Usha Martin was able to increase their margins and profitability despite the fluctuating price of their raw material, which is essentially steel.
“Additionally, the industry has a high entrance barrier due to the lengthy client approval process and complex applications. As some of you may be aware, wire ropes are highly developed goods that must adhere to the highest requirements for dependability and performance. Usha Martin has taken strategic steps to improve its wire rope production capacity, diversify its product line, reorganise its costs, secure its raw material sources, and strengthen its financial position in light of its increased focus on the specialised wire rope sector”, Rajeev Jhawar explained.
After the firm turned around and stabilised, Usha Martin implemented a new dividend policy in FY22. “I am delighted to share that the Board has recommended a healthy dividend of Rs. 2.5 per share for FY23, amounting to a total cash flow of Rs. 76.2 crore after taxes. Our commitment to all shareholders remains strong, and our Board will continue to prioritize a balance between investing in the business to pursue growth opportunities and rewarding shareholders through dividends”, Rajeev Jhawar Usha Martin added.
He finished by stating that Usha Martin has overcome its previous obstacles and has made significant development over the past three years. He firmly believes that Usha Martin is going through an interesting time right now. Rajeev Jhawar is certain that the business is in a position to take advantage of the enormous growth potential the sector has to offer. He anticipates continued support from the community and investors as they embark on a journey to build long-term, sustainable value for all stakeholders.
The session was carried on by Mr. Anirban Sanyal, CFO of Usha Martin, who then explained through the operational and financial highlights for the quarter ended 31st March 2023.
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