Usha Martin Gdr 144A

Ladies and gentlemen, good day and welcome to the OSHA Martin Limited Morning Conference Call. As a reminder, all passing lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touchstone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anup Pujari of CDR India. Please go ahead. Thank you. Good afternoon, everyone, and thank you for joining us on Uta Martin's Q4 MSI 25 audience conference call. We have with us Mr. Rajiv Jawad, Managing Director of the company, Mr. Abhijit Paul, Chief Financial Officer, and Mr. Shreya Jawad from the Strategy and Growth team of the company.

We trust you have reviewed the earnings document shared earlier. To begin, we will initiate a call to open the notes from the management, or you can open for a question and answer session.

Before we start, I would like to find out the some statements made in today's call, may be for looking in nature, and if this feedback with the credit has been included in the representation shared with you earlier.

I would now like to invite Mr. Rajiv Chauhan to make his opening remarks. Good afternoon everyone.

On behalf of the management team of Usha Martin, I would like to welcome you all to our earnings conference call. I will begin by sharing some updates on operations and strategies following which our CFO, Mr. Abhijit Paul, will run you through the key financial highlights. We are pleased to share that F525 ended on a steady note with revenue reaching Rs. 3,474 crore, a growth of 7.7% year-on-year, driven by 9.5% increase in volumes across our core segments. The wire rope divisions performed well, recording a 9.3% year-on-year revenue growth, while the wire segment registered a robust 19.7% increase over the same period. Within the wire rope segment, the value-added products accounted for 71% of revenue in FY25, with encouraging contributions from the oil and offshore and the elevator sectors. International markets In Q4 at 5.25, EBITDA margins were at 15.6%, primarily due to a higher share of LRPC sales during the quarter. As part of our measures to optimize the business model in our international locations, we have taken a provision of one-time redundancy cost of Rs. 4 crores during the quarter. Excluding this one-time cost, the EBITDA margin stands at 16%. Looking ahead, we remain focused on cost control, operating discipline, and enhancing the share of value-added offerings to support margin expansion. As shared previously, One Usha Martin is our company-wide transformation program aimed at operating as a unified enterprise, moving away from regional silos This strategic shift is yielding gains in cost optimization. It will also help us become more competitive and strengthen our position to gain further market share. The initiative is now firmly embedded in our culture and way of working. I would like to share a few key developments under the one Usha Martin approach. Number one, as a part of this initiative, the restructuring at our Brenton Shaw UK business is progressing very well. Under the new model, Brenton Shaw will operate as a specialized hub focused exclusively on manufacturing critical large diameter ropes for the oil and offshore sector. For other key value added sectors such as fishing, elevator, grain and mining, We have commenced direct exports from India to the European customers, enabling improved service levels and enhanced cost efficiency. The full transition is on track and set to be completed by September of 2025. This integration of Rachi and Benton Shaw has also played a significant role in reducing inventory requirements at BSUGate thereby contributing to better working capital management. In parallel, we are implementing best practices in procurement, logistics and back-end operations across regions with a focus on driving leaner and more efficient administrative structures. We anticipate that benefits of these enhancements will start delivering measurable value from the second half of the year F2526. We are also making significant progress in our digitalization efforts. During the year, the implementation of SAP S4 HANA was successfully completed for our operations in Singapore, Australia, Vietnam, Indonesia, United States and Thailand. with the updation of our European entities currently in progress. Moving everyone on a single unified digital platform is a key enabler of the one Usha Martin vision, speculating stronger process controls and ensuring the successful integration of our back office operations. With these initiatives underway, we are starting to see early results across key metrics and expected further improvements as the programs mature. We have begun to see improvement in working capital efficiency because of this integrated approach. Working capital days improved from 209 in September of 2024 to 199 days in March 2025, reversing the earlier trend. Additionally, we generated 141 crores of operating cash flows from international operations in S2 of FY25, helping strengthen our balance sheet. As a result, even after undertaking Rs. 245 crores of capex during the year, we brought down the consolidated net debt to Rs. 63 crores, while our standalone India operations turned into net cash positive. With these improvements in place, We are confident of sustaining this trajectory and maintaining tighter control over working capital in the quarters ahead. Looking forward, our strategic focus for the upcoming year will center around the following priorities. 1. Continue to pursue value-led volume growth through completing the capacity expansion at our Ranchi plant. We expect volume ramp-ups in the value-added wire rope segment to support our margin expansion in the quarters ahead. 2. Focus on value-added services for customers through our dedicated trading shops in Europe, Middle East, Southeast Asia, thereby also improving customer stickiness and margins. 3. In the domestic market, the continued growth in infrastructure An advancement of Tri-2 and Tri-3 CTs is expected to drive demand for our products, particularly in segments such as elevators and train routes. We are working closely with our channel partners network to grow our markets here in India. This initiative is part of our broader strategy to pursue high-value products even within the wired segment, both in the domestic and the international markets. Our commercial production of ocean fibre has begun, making our entry into the synthetic sling space for offshore lifting. Though at a nascent stage, At the moment, the venture reflects our long-term commitment to product innovation and global relevance. To conclude, we remain committed to long-term value creation through consistent investment in value-added segments, product diversification, and operational resilience. While there are uncertainties globally and ongoing geopolitical tensions Our disciplined approach to execution and financial prudence will continue to support sustained performance in the quarters ahead. With this, I would now like to invite our CFO, Mr. Abhijit Paul to present you the financial highlights for the quarter ended 31st March 25. Thank you and over to you Abhijit.

Thank you and a very good afternoon to everyone. I will now provide a brief overview of the company's operating and financial performance for the quarter and year-end date 31st March 25. In Q4 of 2025, our consolidated net revenue from operations stood at Rs. 896 crore, reflecting a year-on-year growth of 8% over Rs. 829 crore in Q4 of 2024. This revenue growth was led by segment which grew by 36.5% year-on-year and LRPG segment which saw 18% year-on-year increase. The core virus segment remained at same level on a YOY basis and is expected to gain momentum in FY26 supported by a recovery in demand and the ongoing One Usha Martin initiative. These efforts are aimed at enhancing our competitiveness in international markets which in turn will drive growth and margin improvement. Operating EBITDA for the quarter stood at Rs. 140 crore compared to Rs. 152 crore in the corresponding period last year. That said, as highlighted earlier, our focus on rising operational efficiencies remains firm and we expect this to support margin recovery going forward. Net profit for the quarter stood at Rs 101 crore compared to Rs 106 crore in Q4-24. On a full year basis, FY25 consolidated net revenue increased by 7.7% year-on-year to Rs 3,474 crore compared to Rs. 3,225 crore in FY24. The wire rock segment remained our key contributor accounting for 72% of total revenue. Operating EBITDA for the year was Rs. 597 crore, largely scheduled compared to Rs. 599 crore in FY24. Profit before tax stood at Rs. 527 crore, as against Rs. 550 crore in FY24. PVT was impacted by a higher depreciation cost resulting from capitalization of assets worth Rs. 303 crore. On the balance sheet front, I am pleased to report a notable improvement in our financial position. As of 31st March 25, our consolidated net debt reduced to Rs. 63 crore down significantly from Rs.124 crore a year ago. Correspondingly, our net debt to equity ratios improved to 0.02 times down from 0.05 times as of March 24. Our prudent capital allocation ensures that ongoing and planned growth investments remain competitively funded. From a cash flow standpoint, We delivered a solid improvement. Cash flow from operations before tax in FY25 stood at Rs. 541 crores representing 91% of operating EBITDA compared to Rs. 200 crores which was 63% of the operating EBITDA in H1 of FY25. These robust cash flows coupled with adequate working capital headroom provide a strong foundation for future investments and capital deployment. In closing, I would like to reiterate our confidence in One Usha Martin's long-term growth trajectory. We expect continued momentum across both volume-led and value-led drivers, supported by strategic initiatives such as One Usha Martin Transformation and ongoing investments in digitalization and customer engagement. We remain committed to delivering sustained performance improvement and long-term value creation for all stakeholders. This brings me to the end of my address. I now request the moderator to open the line for question and answer session.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aman Tanakhlia from AK Securities. Please go ahead. Good afternoon, sir. Sir, I have few questions regarding the performance and features direction of the company. Sir, what is the reason behind the deep in the margin and when we can expect margin improvement?

Hi, sir. Thank you for your question. So, as we mentioned in our opening remarks that there was a one-time redundancy cost of rupees spoke role this quarter which did impact our margins margin percentage. Secondly, the margin percentage was also impacted during this quarter because of the LRCC mix. The volumes of LRCC in this particular quarter was about 15k compared to Q3 where it was about 13k So this LRTC mix, if we think about how this accounted for the overall margin percentage, it would be approximately a 1% margin reduction on account of this mix. And thirdly, another reason is also the higher cost in the European entities, which we had mentioned in the last call as well. which continue to impact our margins and for that we have taken certain initiatives especially in our BS2K facility and based on these restructuring initiatives of the BS2K business which we are implementing, we do expect further margin improvement especially starting Q2 of this next financial year.

Next question is when can the For last few years, I think our volume in wire rope is almost stagnant. So, from when we can see noticeable volume growth in wire rope segment?

As I had mentioned in the opening remarks that our volume grow by about 10% year on year as far as the wire rope is concerned. The new CAPEX is already in place and we have the capability of increasing our volumes And as the markets keep on improving, as we are targeting newer markets in Saudi Arabia, in also different sectors, even further consolidating our markets in India, we are now geared up to increase our volume. Then I expect quarter on quarter, we should be able to see growth in our volumes as we move forward.

Thank you, sir. Sir, what is the latest update on Gulfine wireline, plasticated electricity and business in Saudi Arabia?

The Galstar line is now started to produce and we have got prime orders as well as some commercial orders from our customers. I am happy to say that the samples produced have been accepted well in terms of the quality. and we are now expecting the ramp up of volumes to take place and we expect that we should be gradually ramping up the volumes in the next two quarters to be able to come to close to 450 tons a month and then by end of this year to come to almost 80-85% of park capacity. On the plasticated LRTC, our plant is capable of producing 500 tons a month as of now We are doing close to 200 to 250 tons a month. This largely depends on the various projects which we have quoted for and depending on the demand from these projects and as the schedules come, we should be able to ramp up. We would say that in the next three to four quarters, based on the projected demand, we and the projects under the pipeline, we feel that there is an opportunity that towards the end of the year, we see the volume of tape come closer to our capacity.

Okay. And sir, how is the European and US market?

The European market is fairly stable I would say with demand from oil and offshore continues to be strong with good inquiries. I think the order book should get better in the coming months. Even the elevator business is stable. As far as the US market is concerned, the markets are a little confused at the moment with the various tariffs tariff issues which are happening on a day to day basis but based on our team we expect that the business should ultimately be stable as the US does not have the manufacturing capability of the additional volume and with a fairly good product mix and customer base established already there we should expect the business we should expect the business to be as usual and hopefully better as things stabilize.

Sir, one more question, sir. There may be chance of peace between Ukraine and Russia in near future. This could present a significant opportunity for our product in Ukraine. So, how frequent are we to capitalize on this potential if it happens?

First of all, if it happens, that would be very good for the overall geopolitical situation. I think this would lead to a big reconstruction of the war, whatever happened during the destruction in the war. So lot of reconstruction activity will happen, thereby increasing the demand for train roads as well as elevator roads, particularly in these two areas. And I think that could result into a big opportunity coming up. And the company with its expansion has enough capacity to be able to take care of these demands if and when they come.

Okay, sir. Thanks a lot. Thank you. The next question comes from the line of Rajesh Majumdar from B&K Securities. Please go ahead.

Hi, good afternoon everybody. So, I thought I had a question that our wire rope quarterly volumes were about 28 KT in 2Q FY25 and from there it has fallen to 25 KT. Can we attribute this entirely to the European business and the fact that there is some short-term research going on or is there some slackening in the demand as well?

Thanks for your question. In the European market, while the demand is healthy, there have been certain margin pressures which have impacted the performance and there are some competitive pressures that we see in the market. So part of it would be attributed to the European market as you mentioned. But overall globally as well in Q4, there was a slight slowdown on account of the uncertainties around policies and tariffs And that's why the ROE performance was largely flat compared to Q4 of the previous year. At the same time, in terms of the domestic market as well as market in the Middle East, certain project execution was slightly slower than anticipated. But we see some early signs and we think it should pick up in the upcoming year. And as we mentioned before, our focus will be now to optimize our costs in order to tackle some of these sectors that we're seeing in the European market as well as globally and at the same time focus on the value-added rope products as well as our digging business in Europe, Middle East, Southeast Asia in order to grow our rope volumes as well as our margins.

Okay, and secondly, on your outlook for margin, we've seen 16% around for the two consecutive quarters, and you said 2Q, FY26, so you have a long-term guidance of 18% to 20%. Will you see that in 2Q or even later in 2Q, that kind of a margin profile coming back into the company? Yeah, that was my last question.

Yeah, so quarter and on quarter, you know, obviously depending on the mix, the margin can change. But I would say that over the next year, we expect an overall, you know, margin of 18% at minimum is what we are targeting. With, you know, stronger progress towards the second half as some of our One Usha Martin initiatives are in full swing. So that's, you know, on an overall year basis, we still maintain a minimum of 18% is our target.

Okay, thank you.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and run. The next question comes from the line of Krupanchu from Thinkwise Realtor Managers. Please go ahead.

Hi, thank you for the opportunity. So just on the wire of volumes, so earlier we had some visibility from Saudi Arabia market, new growth of, we were targeting 4,000 metric tons, right, in a year. So like that, in elevator rope, we were targeting around 12,000 tons. So how is the visibility now that we went to FY26? And are there new opportunities from the UK-India free trade agreement? Just on the volume side, if you can give me some visibility. That's my first question.

Thank you for the question. So on the elevator volumes, I think we are on target and we expect strong demand both from the international markets where we are operating as well as in the domestic markets with the growth in the tier 2, tier 3 cities. We expect the demand to be fairly strong and we are on target to achieve the numbers what we have projected. In terms of the Saudi market, we have started doing between 150 to 200 tons a month which is on an annual rate of close to 2500 tons and we expect that gradually because we have just started few months now with initial supplies made, some repeat orders coming. We are fairly optimistic to achieve these numbers. quarter here or there but ultimately the demand fraction is fairly strong and we expect to be around the 4000 tons by the time the exit rate of 4000 tons we should be able to achieve.

And on the UK India agreement, does it open any opportunities for us? The UK India, I don't think the time that I am talking about

our demand between India and UK through our BSUK continues to be stable and we expect that this volume should be should be continuing neither we see I don't see a big big increase because our new model which we have built up where we now supply directly from India to the European companies instead of to BS UK plant. So there may not be direct replies to BS UK, but overall our volumes in the European market on the BS UK branch should be fairly stable to getting better.

Understood. And on the gross margin, so this quarter we've obviously seen significant compression. Can we attribute it entirely to the production exchange? And if, supposing, a wire rope mix improves, then is a 50% kind of a margin reasonable?

Actually, I don't think so.

Part of it is because of the one-size-fits-all technology and the basic needs of all those folks. And that one-size-fits-all technology has to Sir, I am trying to interrupt you.

Your audio is not coming in clear. There is some disturbance at the end.

You can get an echo.

Yes, sir. Ladies and gentlemen, I would request you to stay connected while I reconnect the management. Thank you. Ladies and gentlemen, we have the management reconnected. Subhash, you can please continue. Thank you.

Yeah, my question on cross-morgans.

Yeah, so it was primarily due to the mix of LRTCs which impacted the gross margins. If we look at our usual mix from the last couple of quarters, it would be at similar levels.

Understood, thanks. And my last question would be, our buyer and chance volume growth has been very encouraging. So where is this growth coming from exactly? If you can give us a type of orders also.

sectors mainly from the auto segment and some of the specialized spring requirements and that is both which we supply to the domestic market as well as the customers are exporting it so it's mainly coming from the auto and the specialized spring segment as far as the strength is concerned this is the LRPC which is because of the demand from the construction sector and the plasticated LRTC would be going into these big bridge construction. So, these would be the sectors where we expect the growth coming from.

Okay, thank you.

Thank you. The next question comes from the line of Rohin Nandu from Edelweiss Public Alternatives. Please go ahead.

Yeah, hi team. Thank you for giving me the opportunity. The first question is slightly on the margin pressure that you alluded to not just in this quarter, but couple of quarters back as well, that you have also clarified that there is slightly heightened competition. So, my question is, you know, with, let us say, with stereotyping, settling, and maybe the Ukraine issue also solving. Should we see some easing of competitive intensity led margin pressure in the coming quarters? Any color on this aspect of margin pressure that you have alluded to in the past? Any change there that you see in the near term? Or this margin pressure is something which you think is going to continue?

as we mentioned that margin pressure is because of two reasons one is because of the competition which is always going to be there and secondly because we are going through we could see that in our new model in the business model which we have now gone for for uh change in our model with our european subsidiary bs uk now focusing only on the higher value added products and the direct shipment from the new capacities built in India it would result in reduction in our fixed cost as well as some of the initiatives part of one Osha Martin where we are focusing on shifting lot of back office work to India thereby optimizing our cost focusing on the logistics procurement and all these things all these things which are actively being pursued We expect the year to be, the whole year as Shreya mentioned, to be at minimum 18% EBITDA margin. From the current levels of what 16% we are in, overall with these initiatives and improvement in product mix and increase in volumes all coming together, we should expect to be around 18% for the year, minimum.

I understand, Mr. Javar. So what I am trying to understand is that this is not assuming any change in competition, right? Or any change in the intensity of competition. Am I correct in assuming that?

Yes, this is assuming that business as usual at our current level. Yes, that's what we are assuming as the state of business today.

Understood. And on this restructuring, right, you have spent 4 crores as a one-off, right, in Q4, FY25. How much more do we intend to spend on restructuring? And do you think that the benefits might start accruing from Q1 onwards or this would be back-ended even in FY26?

Yeah, so in terms of BSUK restructuring, we, you know, as part of our overall plan, we are reducing the manpower at BSUK by about 50%. And that entire provision of 4 crore for that restructuring largely, you know, was on account of this manpower reduction, which is a one-time cost. And we don't expect any further provisions to be taken in the upcoming quarter. So this was, you know, the... major cost in terms of restructuring that we see when it comes to this initiative. At the same time, we are also looking at optimizing the other fixed costs like the back office operations. So costs would reduce, but we don't expect any further provisions in terms of restructuring to be taken.

And the other question is when do we expect the benefit of this to start reflecting? I would say from, you know, once all this is completed, we'll see the effect on the overall cost and improvement in margins from Q2 of this financial year.

Okay, great. That's it from my side. Thank you so much.

Thank you. The next question comes from the line of Aryan Sharma from BNK Securities.

Please go ahead. Yeah, hi sir. Thank you for the opportunity. Just a couple of questions regarding some guidances. So, could you just guide me through, like you mentioned previously that we can expect sequential volume growth, but could you just guide me through some numbers as to what we are expecting or what we are expecting in this time?

Overall, in terms of both volume and top line, we expect, say, about a 12% to 15% growth overall across the wire slope as well as wire segment. LRTC, again, you know, is up and down depending on competitive pressures. So, within that, our focus will be primarily on the plasticated LRTC, how much ever we can grow within a capacity of 500 tons a month.

And, like, what things do you add value as share, then? What do you add value as share?

Within Viro, some value as share right now, in terms of revenue, is 71%. The goal is to, you know, maintain that at a minimum and with the new capacities that have come on stream and certain OEM approvals that we are targeting, hopefully that should grow gradually as well. But we add minimum.

Okay.

to maintain that shift.

I have just one final question with regards to the restructuring which we are doing right now. So is there any quantifiable number which you guys have worked out on like how much we are expecting? Does EBITDA margin jump just because of this restructuring like over normalized EBITDA?

So once this entire restructuring exercise is done in the European facility And across the global entities, we are looking at the cost side for all the entities, wherever we have scope. So this will have an impact of 1% to 2% on the margin, 1% to 1.5% on the margin. So the cost impact will be around 1% to 1.5%, maximum to 2% of the margin. That we are targeting.

Yeah, okay. That's it from my side. Thank you. Thank you for answering my question.

Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1.

Once again, a reminder. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Shraddha Kapadia from Smith's Pizza Head.

Hello, thank you so much for the opportunity.

Shweta, I do apologize to interrupt you there, but yes, you are not clear. Your audio is not clear.

Hello, am I audible now?

Yes, please go ahead.

Yeah, so my question is mainly regarding the international market. So currently, we contribute approximately 55% of our revenues. So for the future or the next leg of expansion, which are the major markets which we would be targeting?

In terms of the international market, I previously mentioned Saudi Arabia would be one of the major markets we are targeting. There are construction projects as well as, you know, with oil and gas in the port sector in Saudi Arabia that would boost the demand for arc lane ropes as well as this lane. So that is one of the markets we're targeting. Secondly, offshore wind, the offshore wind sector in the UK and the North Sea area is another key demand driver because we're seeing certain projects in the pipeline for the upcoming years. Thirdly, in UAE, also the oil and gas projects are gaining some traction now. So if some of those projects materialize, then we would see growing demand for oil and offshore growth in the UAE as well. And then in the Americas, of course, the market was a bit uncertain over the last, last couple of quarters but now it seems stabilizing a bit. We hope that the mining as well as the port and elevator markets that have been strong in the US that continues as well. That being said, you know, while its natural market share has grown and now it's at, say, 55% of the total top line for the last few quarters, now we think this would maintain at the same levels because in the domestic market as well, we're seeing a lot of traction and a lot of, you know, while it was low in terms of project execution in the last quarter, hopefully with the demand in the elevator sector as well as some of the same ropes in the construction sector, we see growth in the domestic market as well. So overall, the mix would largely be at the 55-56% change for international and 45 for India.

Thank you so much for such a detailed answer. My next question was somewhat related to this only. If we take a look, the infrastructure is picking up in India and Europe. So how do you look at this going forward for S526?

The infrastructure growth has started picking up in India and also

if the geopolitical situation gets better as we discussed earlier this should bring a big opportunity growth in the infrastructure and that would enable our demand for crane ropes and elevator ropes to be to be fairly strong both in the domestic and international markets because with infra growth these are the two sectors where we see good demand should come in so Hopefully, it should get better in the coming quarters if the infra-growth trend continues.

Sure. Thank you so much for answering my question. You have all the best of luck.

Thank you.

Thank you. The next question comes from the line of Kitesh Chhera from Lucky Investments. Please go ahead.

Madam, can you give a bridge on what is the capacity utilization in wire ropes that you have on the capacity and how much will be expanded capacity addition that will be done?

So our capacity utilization for the current year is around 80 to 85 percent and with the additional capacity coming in we will be reaching around our wire rope capacity will be around 150,000 will be our revised wire rope capacity. and the current volume is around 1,4,000. So, we have red room for growth for the next 3 to 4 years.

So, that is the current.

Okay.

At 104,000, you are 85% utilization. So, basically adding about 30,000.

So, 104,000 is the current volume on a capacity of 1,25,000.

Right.

And we are adding another 20,000 in the row. to 20 to 25,000. So, we will reach around 1,50,000 by the end of this quarter. So, on that basis, for the next 2 to 3 years with a 10% volume in growth, we are quite covered.

Okay. What's your market share in US and Europe? Enviros.

In virus, the market share in U.S. would be 3 to 4% overall. So we are at a low base right now. In terms of our overall top line, about 5 to 6% comes from the U.S. market. So we are at a fairly low base in terms of market share and even our mix of U.S. business in the total revenue. But with the certain traction in mining, elevator rope, as well as certain port contracts that we're looking at, hopefully that is something that we can build on. But again, the U.S. is something where there is a little bit of uncertainty. So even from U.S. operations, we're also looking at Canada as well as Latin America as opportunities for growth. So that's something that we're looking to pursue further. more aggressively over this financial year. In Europe? In Europe, again, in different sectors, you know, it would be different. In the fitting rope segment, for example, it would be less than 5%, while in oil and offshore, our market share is more with the ocean max strength. But overall, I would say it's still... between 8-9% market share even in Europe. The competition is obviously more intense in the European market with a lot of regional players, a couple of regional players in the high performance sector. But I think with the new model again, back to the new front and core model that we have with supply from India, we think that the European market is an area where we can get a lot of growth because The customers have shown positive signs and acceptance of supplies from our branching facility that have already started. So with the reduced cost of being more competitive in the market as well as with the acceptance of our products from India, I think the combination of that should help us increase the market share in Europe.

And last thing, what is the differential EBITDA per kg between wire rope and wire rope strength?

Overall, as you know, EBITDA per ton has been at, for the year, about Rs. 30,000 per ton. We don't usually separate it out between wire rope and wires because a lot of the capacities are fungible. But if I have to give you a ballpark, wire rope would be 55 to 60,000 rupees per ton whereas wires would be 12 to 15,000 rupees per ton. Wire rope will be between 55 to 60,000 rupees per ton.

the next question comes from the line of Jordan from Investavis portfolio management please go ahead yes thank you for taking the question we would like to know

what are the top two opportunities and top two risks that you see for the company, especially in light of all the, you know, global uncertainties which are present?

I would say the opportunities would always be in the infrastructure sector. and the oil and offshore which continues to be fairly robust with most of the countries still trying to be energy self-sufficient and that has been a growth area for us in the last year as well and that continues to be strong. Elevator rope business also continues to be fairly strong particularly in the domestic market with the extensive growth in the tier 2, tier 3 cities on the real estate business with the multi-storey buildings So that is an area where we feel that the growth would continue to be very strong in the coming, should be there. On the risk side, of course, the top risk, of course, the uncertainty on the U.S. tariffs, which hopefully should not be a major issue for us, but definitely with the new policy changes coming every day, uncertainties in the minds of the customers that what happens if they import and the prices are higher and then the tariffs come down, they get stuck with higher inventory and all these uncertainties could definitely be one of the risk factors. The other risk factors could be if the geopolitical situation gets worse globally, it could definitely again destabilize the the logistics, the market. So these could be the potential risks what we see in front of us.

Sir, the fact that China's tariffs has more or less been seems to have been frozen at 30% and India currently is at 26% which could go down. Would that be an opportunity for you?

For us, when it comes to the tariffs, we are under Section 232. So, it's almost a level playing field of 25% for all countries. China is a bit higher, I think at about 35% for our sector in particular. We don't see that changing. This has been effective since March 12th. And before that, there was still a bit of uncertainty. But since then, I think this has stabilized. And I mean, in the future, we don't know what that was. But as of now, this is what it is. For all other countries, except China, it's 25% level pain.

And the UK treaty has also not changed that for UK. The US-UK treaty, the treaty between, whatever the agreement between US and UK, which was just signed, That has also not changed that for UK.

Nothing for us. Those changes are not having any impact on us.

Okay.

Cool.

Thanks a lot.

Thank you. Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for their closing comments.

I would like to thank everyone for attending the call and showing interest in Usha Martin Limited. I hope we have been able to answer all your questions. The company is dedicated to creating value for all its stakeholders in a sustainable manner. Should you need any further clarification or would you like to know more about the company, please feel free to reach out to us or to CBR India. Thank you once again for taking the time to join us on the call and see you all in the next quarter. Thank you.

Thank you. On behalf of Husha Martin Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line.