Usha Martin was established in 1960 and is today a leading global manufacturer and market leader in the wire rope industry with its multi-unit and multi-product portfolio. The company’s wire rope manufacturing facilities are located in Ranchi, Hoshiarpur, Dubai, Bangkok, and UK producing the widest range of wire ropes that find application in various industries across the world. The company’s high-quality wire ropes find application in diverse sectors such as oil and offshore, mining, crane, elevator, and other infrastructure segments. It has its global research and development center located in Italy which is actively engaged in the designing of wire ropes along with a comprehensive research and development facility in its manufacturing facility at Ranchi.
Usha Martin’s factory in Ranchi is one of the world’s largest wire rope manufacturing units and also manufactures high-quality conveyor cords along with customized and diversified applications in Infrastructural development work, Renewable energy installations, Construction and Maintenance of Bridges, etc. Usha Martin is India’s no 1 specialty steel wire rope solution provider offering a wide range of specialty high-quality wire ropes, low relaxation prestressed concrete steel strands,s and bespoke fitments, accessories, and other related services. The company is undergoing a strategic transformation by divesting the steel business resulting in sharp deleveraging and re-shaping of the balance sheet. It is also looking more at consolidation through a renewed focus on the specialty wire rope business plus consolidating its leadership in the sector.
Revenue from operations decreased by 1.3% year-on-year in FY24 to Rs 3225 crores. In Q4FY24 the revenue stood at Rs 829 crores whereas both the wire and strand segments witnessed declines but the consistent performance from the core wire rope segment supported the overall revenue target. FY24 operating EBITDA stood at Rs 598 crores, increasing 16.6% on a y-o-y basis while the operating EBITDA margin for FY 24 improved to 18.6% up from 15.7% in FY23. EBITDA margins, including other income, rose to 19.8% in FY24 from 16.6% in FY23. The continued focus on value-added products along with a growing global fingerprint, contributed consistently to margin performance. In Q4FY24 operating EBITDA stood at Rs 151 crores, decreasing 1.6% on a y-o-y basis while the Operating EBITDA margin for the quarter was 18.3% compared to 18% in Q4FY23. EBITDA margins including other income stood at 19.4% in Q4 FY24, as against 19.3% in Q4 FY23.
In FY24 profit before tax stood at Rs 549 crores as against Rs 455 crores in FY23, registering a 20.7% year-on-year increase. In Q4FY24 the profit before tax amounted to Rs 136 crores, registering a 4.1% year-on-year decrease from 142 crores. FY24 profit after tax stood at Rs 424 crores as against Rs 350 crores in FY23 while in Q4FY24 profit after tax stood at Rs 106 crores against Rs 105 crores.
The management has commented on the FY 2024 performance to be systematically de-risked, managing the raw material volatility successfully, focusing on managing working capital requirements, and significantly improving cash flows despite the macroeconomic challenges. The stock price of Usha Martin is quoting Rs 371 on the bourses and is a good buy for long-term portfolio gains on the back of solid performance in the next few quarters.