Usha Martin Gdr 144A

Ladies and gentlemen, good day and welcome to the earnings conference call of Husha Martin Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dev Rishi Singh 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 Q3 FY24 earnings conference call. We have with us Mr. Rajiv Jawar, Managing Director of the company, Mr. Aniswan Sanyal, Chief Financial Officer, and Ms. Shreya Jawar, from the strategy and growth team of the company. We hope all of you have had the opportunity to refer to the earnings documents that we shared with you earlier. We would now like to initiate the call with the opening remarks from the management, following which we will have the forum open for a question and answer session. Before we start, 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 invite Mr. Rajeev Jhawer to make his opening remarks.

Thank you and over to you, sir. Good afternoon, everyone.

On behalf of the management team of Pusha Marjan, I would like to welcome you all to our earnings consult call. I will begin by sharing quick operational and strategy-related updates of the company, following which our CFO, Mr. Anirban Sanyal, will run you through the key financial highlights. I am pleased to report that over the first nine months of the year, we have made healthy progress on our strategic growth initiatives. These include 1. Continuous enhancement of our product portfolio 2. with a focus on value-added offerings, and two, strengthening our capabilities through CapEx strength initiatives. During the recent quarters, there have been rising pressures in our wire and strength and LRPC segments, which has had an impact on the revenue performance. Despite that, we have shown resilience, managing to maintain stable top-line performance, on the back of strong support from our core wire rope segment. The contribution of wire rope segment to our consolidated revenue has increased to 70% in the 9 months FY24, up from 67% in FY23. Simultaneously, the share of value-added industry segments in our consolidated revenue registered growth reaching 49% up from 44% in FY23. It's worth highlighting that within the wire rope category, the contribution of value-added segments increased to 70% in 9 months FY24, up from 65% in FY23. Additionally, during the same period, revenue from international markets constituted 55% of our total revenue. Despite the volatility in seed prices, our wire rope realizations have consistently shown an upward trend. This positive trajectory is particularly noticeable in our value added wire rope products, which demand substantial engineering expertise. This has helped improve our profitability with our operating EBITDA and PAT registering a healthy growth of 23.7% and 27.9% respectively. In this financial year, our focus was on value. From next year, we will do value-led volume growth. So, looking ahead, our first wave of capital expenditure, that is Phase 1 expansion in Rashi, is set to be completed in Q4. This phase includes the increase of capacity for higher value added products such as train ropes, compacted ropes, plasticated ropes, oil and offshore ropes. Furthermore, our CAPEX initiatives include the modernization of existing production facilities aimed at enhancing our infrastructure. We believe that these investments will further strengthen our position as a leading global player in the wire rope sector. I would also like to take this opportunity to give updates regarding a few important growth initiatives taken by us. Number one, we have set up a step-down subsidiary company in Saudi Arabia through our Dubai subsidiary, Brunton Wire Ropes, to target the growing Saudi market. 2. Our island subsidiary, Usha Siam, recently acquired the remaining 50% stake in Cezac Usha. Previously, it was a 50-50 JV with Cezac Viro of Japan. We will use this facility for the manufacture of high-value elevator ropes. 3. We are planning to enter the synthetic slings market through our UK plant, Brenton Shaw UK. This will be our first foray into the synthetic slings. space. In addition, Husha Martin is actively pursuing various internal initiatives that will continue to contribute positively to its operational and financial performance. Firstly, the successful integration of our international businesses with the Indian operations is encouraging growth energies and creating a more integrated and collaborative approach across our global and local teams. Secondly, to support our constant commitment to strategic growth, we have established cross-functional groups for our key growth segments such as mining, elevator, fishing, and structural, maximizing our impact in these critical areas. Furthermore, our dedication to a one-stop-shop approach with an intensified focus on services is actively contributing to an overall enhancement in customer satisfaction. Going forward, we are confident that our efforts in this initiative will help position us as a comprehensive solution provider in the wireless sector. Lastly, the continued strengthening of our international teams and organizational structures is equipping us effectively to meet the unique demands of a diverse market. In conclusion, I want to highlight that presently our company is dedicated to its strategic initiatives and leveraging its fundamental strengths in the face of the global market environment. We are confident that our sustained efforts will yield positive results, playing an important role in driving sustainable growth for Usha Market. With this, I would like to hand over to Mr. Anirban Sanyal, our CFO, who will present the operational and financial highlights for the quarter and nine months ended 31st December 2023. Thank you.