Q2 2025 Usha Martin Ltd Earnings Call Transcript
Key Points
- Usha Martin Ltd (BOM:517146) reported a resilient financial performance with a 13.6% year-on-year increase in net revenue for Q2 FY25.
- The Wire Rope division, a core segment, showed strong performance with a 19.2% year-on-year revenue growth, contributing 73% to overall revenues.
- International markets contributed 55% to total revenue, indicating strong global market penetration.
- The company is focusing on higher value-added products, maintaining an operating EBITDA margin of 18% in Q2 FY25.
- Ongoing expansion efforts in Ranchi and Thailand are expected to enhance performance, supported by investments in digitalization and automation.
- The LRPC segment faced challenges, reporting a 6.7% year-on-year decline in revenue.
- Despite a strong product mix, the EBITDA margin slightly decreased from 18.4% in Q2 FY24 to 18% in Q2 FY25.
- There was a slight increase in net debt, attributed to ongoing CapEx initiatives, with net debt standing at INR127 crores as of September 2024.
- Working capital deterioration was noted, with increased inventory and debtor days, partly due to the Red Sea crisis affecting transit times.
- The company faces pricing pressures in certain segments, impacting margins despite efforts to maintain them through product mix enhancements.
Welcome to the earnings conference call of Usha Martin Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari of CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us on Usha Martin's Q2 FY25 Earnings Conference Call. We have with us Mr. Rajeev Jhawar, Managing Director of the company; Mr. Abhijit Paul, Chief Financial Officer; and Ms.
Shreya Jhawar from the company's strategy and growth team. We hope all of you had the opportunity to go through the results document shared earlier. We will initiate the call with opening remarks from the management, following which we will have the forum open for a question-and-answer session.
Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation.
I would now like to
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