Usha Martin Gdr 144A

Good morning, ladies and gentlemen, and welcome to the earnings conference call of Usha Martin Limited. As a reminder, all participant clients 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 the conference call, please signal an operator by pressing star, then zero on your touchscreen phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dev Rishi Sen from CTR India. Thank you and over to you, sir.

Thank you. Good morning, everyone. And thank you for joining us on Osha Martins Q2N H1 FY26 Coilings Conference Hall. We have with us Mr. Rajesh Jhaver, Managing Director of the company, Mr. Abhijit Paul, Chief Financial Officer, and Ms. Shreya Jhaver, from the strategy and growth team of the company. We hope all of you have had the opportunity to refer to the earnest documents that we shared with you earlier. We will initiate the call with open remarks from the management, following which we will have the forum open for a Q&A 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 invite Mr. Rajiv Jhaver to make his opening remarks. Thank you and over to you, sir.

Good morning, everyone. On behalf of the management team of Usha Market, I would like to welcome you all to our earnings conference call. I will begin by sharing some updates on our operations and strategies following which our CFO, Mr. Abhijit Paul, will take you through the key financial highlights. We are pleased to share that Q2 FY26 reflected steady financial progress and disciplined operational execution. Consolidated revenue for the quarter stood at Rs. 908 crores. The YRO business continued to deliver a steady performance recording a 2.6% year-on-year growth in revenues, driven by healthy contributions from the elevator and plane rope segments. The wire segment delivered a 14.2% year-on-year revenue increase, reflecting sustained demand and momentum. Meanwhile, the LRPC division reported a 26% year-on-year decline. The operating EBITDA for the quarter stood at Rs. 173 crores with a margin of 19.1% and EBITDA per tonne stood at approximately Rs. 35,000 per metric tonne. The improvement was aided by a favourable mix and ongoing cost efficiency. Margin percentage was further supported by temporarily lower LRPC volumes As LRPC volumes recover in the coming quarters, margins may moderate from Q2 levels. However, absolute EBITDA is expected to increase on higher throughput. With regards to the balance sheet, we continue to strengthen our financial position. During the first half of the year, we repaid Rs. 157 crore of debt fully funded through internal accruals. Operating cash flows before tax to debt rupees 390 crore, translating to a robust 123% conversion of operating EBITDA to cash flow. As a result, we close the quarter with net cash position of 111 crore and a healthy ROC of 20.3%. These metrics also reflect the early impact of our One Usha Martin transformation journey. Over the past year, the initiative has evolved into an integral way of working, aligning our global teams and operations under a unified vision and driving sharper execution and stronger financial discipline. While we had earlier indicated that benefits of this transformation would become visible from second half of FY26, we are encouraged to note that early signs have already emerged in Q2. That said, an area where we believe there was room for improvement this quarter was in volume performance. Volume growth during the quarter was below our expectations, particularly in the rope and the LRPC segments. Looking at rope first, this was driven by a few key factors. 1. This quarter, our rope portfolio tilted more towards high performance and value-added ropes. These products command stronger realizations and profitability, though they inherently yield lower output given their specialized manufacturing processes. While there were opportunities to scale up general-purpose volumes, we chose to maintain our focus on an upgraded product mix. 2. While most of our capex is complete, a few regimes for high-performance ropes, which were expected to come online during Q2, faced slight delays in commissioning, which impacted volumes. These are now expected to be operational in Q3 and will help further optimize product mix and throughput in waterfall. 3. The domestic market volumes in rope were relatively subdued during the quarter versus last year's strong Q2 bays, partly due to delayed monsoon and the foster demand environment. We are, however, beginning to see a gradual pickup as post-monsoon activity resumes. Number four, demand in Saudi Arabia, which we have identified as a key volume growth driver, is improving, but at a slower than expected pace. Our teams are actively engaging with key stakeholders to accelerate traction and ensure we are very well positioned in this market as project activity scales up and oil and offshore segment recovers. Now, on the LRTC front, volumes were impacted by the extended monsoon, which slowed down infrastructure activity during the quarter. On the positive side, we are in the final stages of approval with a key customer for our value-added LRTC range. This milestone will enable us to expand our presence both in India and export markets in the coming quarters. Overall, Q2 volumes were softer than expected due to short-term operational and market factors and we expect higher throughput and growth in the second half. In conclusion, the progress we have made across capacity expansion, product development, market diversification and one Usha Martin continues to strengthen our growth ambitions. These initiatives are helping Osha Martin reinforce our leadership in the wire rope industry. With a strong balance sheet and a clear strategic direction, we remain confident in our ability to deliver sustainable and profitable growth in the coming years ahead. With this, I would like to now invite our CFO, Mr. Abhijit Bal, to present the financial highlights for the quarter. Thank you. Thank you and a very good morning to everyone. I will now provide a brief overview of company's operating and financial performance for the quarter and half year end date 36th September 2025. In Q2 of 2025, our consolidated net revenue from operations stood at Rs. 908 crore as against Rs. 891 crore in Q2 of 2025. This performance was driven by a healthy 14.2% year-on-year growth in the work segment

while wire rope segment which accounted for around 74% of total revenue registered a stable 2.6% growth on a year-on-year basis. Operating EBITDA at Rs. 173 crore compared to Rs.

151 crore in the same quarter last year with margins improving to 19.1% from 18%. Net profit from continuing operations for Q2 FY26 to that Rs. 128 crores up from Rs. 109 crores in Q2 of FY25. For the half year, revenue from operations was Rs. 1795 crores as against Rs. 1718 crores in H1 FY25, registering a 4.5% year-on-year growth. Operating EBITDA rose to Rs. 318 crores compared to Rs. 315 crores in the same period last year. while tax from continued operations improved to Rs. 228 crores versus Rs. 213 crores in H1 of H5-25. During the quarter, we recognized an expense of Rs. 17.8 crores towards additional expenditure likely to be incurred related to transfer of certain land parcels to Tata Steel relating to earth-wise sale of steel divisions. The same has been reported under discontinued operations. We would like to mention that our operating cash flow will not be impacted due to this as we have amount receivable from Tata on this account. We would like to highlight that overall fixed expenses have reduced significantly compared to last year driven by various initiatives under the One Usamadin program. These include the establishment of a shared back office in India, optimization of treasury operations across group companies, centralized negotiations with vendors, and an increased focus on off-coverness across the organization. As a result of these efforts, we were able to reduce our tax expenses by more than 10% compared to 2025. On the balance sheet front, overall net working capital has reduced by over 108 crores from the peak of December 24 due to improved net working capital management. While the absolute level has come down, working capital days have increased primarily due to higher base in September 24 as the metric is calculated using average net working capital over the past 12 months. Pre-cash flow for H1 FY26 was 229 crores, which helped us to reduce our debt significantly. Growth debt decreased from 338 crores in March 25 to 181 crores as on September 25. This has helped in meaningful reduction of finance costs.

To conclude, the strategic groundwork laid under one Usama team transformation, together with our disciplined financial approach,

continue to strengthen the company's foundation for sustainable growth. With steady demand across three markets, improving cost competitiveness and robust balance sheet, we are confident of delivering a stronger performance in second half of FY26. Thank you and over to you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press bar and 1 on the capstone telephone. If you wish to remove yourself onto question queue, you may press star as 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions are assembled.

The first question is from the line of Bala Subramanian from Ariham Capital.

Please go ahead.

Thank you so much for the opportunity. So my first question, we have delivered a 95.1% impressive margin. It's majorly led by lower sales in that lower margin LRPC segment. Whether then this LRPC sales normalize, what is the sustainable EBITDA margin for the code business? And how much of the recent margin expansion is structural, especially from the product mix, hot savings versus cyclical in terms of raw material prices. I think already we have guided 18% margin near site 26 and 90 to 20% margin near site 27. Is it good to elaborate more on in terms of product mix shift and operational leverage for new capacity and cross-off savings and net impact of geographic nature in terms of contribution?

Thank you for your question. As we mentioned in our last session, IP production was lower in the quarter expected to improve in the coming quarters. So our overall EBITDA will definitely go whereas the absolute numbers of part-time may reduce. This is the consistent line from our previous quarter also. This is point number one. Point number two, as our CFO mentioned, the 35,000 rupees per metric term or 19.1 is the result of also the one OSHA market which has helped us, the initiatives helped us to reduce our fixed cost by approximately 10% over the previous year. So that has also contributed. So it's a mix of the LRPC and as well as advantages getting from one Osha Martin cost optimization, that is definitely helping us. Going forward, as we see the volumes getting ramped up in the YRO segment, including product mix improvement, which is part of our constant endeavor, we should be able to meet our earlier projections that we would maintain those EBITDA numbers as you articulated. So, we are on line to achieve those numbers given the coming quarters.

Okay, sir. So, my second question, the share of international business has been increased to 68%. Which specific geographics like Europe, America or Africa are driving this growth? And which are the three target markets for the future? And are you seeing any signs of demand softeners in your three international markets? And secondly, you mentioned about flexibility to shift production to the UK to mitigate U.S. tariffs but right now it seems not cost effective. What is the economic retention between applying the U.S. from India and Thailand versus U.K. and what level of tariff or change in cost structure would make the shift to U.K. production happening in may be in future?

Thank you for your question. So in terms of the international market, which is now 58% of the total top line, the growth has been driven primarily by Europe and US. Europe is now 28% of our total top line and the Americas, so US as well as Canada, Latin America. That combined is 90%. So, both of them have contributed to our output. Firstly, with regards to the retail market, our performance, you know, both in terms of top line and top line have been better in terms of their lifestyle. In terms of the tariffs, shifting production to the UK is something that we have not done and it's not something that is in our pipeline right now. The tariffs have largely been passed through to the end customers. So, you know, what's happening in the end market is overall price levels have gone up, but it has not, you know, it has minimally impacted our margins, little or no impact, I would say. Secondly, in the U.S., in terms of the demand momentum, what you ask, we have won some new customers as well as contracts, which we were able to secure earlier this year. Because of that, we have quite a good and stable order flow in the region. And like I said, you know, U.S. is one part where, of course, there is still uncertainty. So far, we've managed it well. But our goal is that in the Americas, we also look at Canada, you know, Latin America, whether it's Brazil, Chile, Peru, Mexico, those are important markets as well. This will help us grow our overall share in that region. Secondly, when it comes to the European market, as we mentioned, the integration of, you know, and the model changes in Brunton Shaw, that happened over the last year has helped us and the direct shipment from India, you know, from our RANCI facility to Brunton Shaw had started that made us more competitive, helped us reduce our lead time as well, which is translating into overall better order flow and helping us win new customers as well as provide existing customers. The demand momentum is fairly stable to positive. I would say we are seeing demand stick up in certain regions, whether it's the industrial sectors, plane or tourist are stable. Our target now in the European market going forward is that right now, you know, through our service centers in Zyroida, in Netherlands, we have a strong presence in that market as well as, you know, the Aberdeen area with the EMM service center. But we feel that you know, this Europe is a big market and, you know, each of these countries are a market of their own and there is a lot of hope and opportunity for further expansion in the European market.

Okay, madam. So, my last question, the new competition is coming from money printers and high-value wires. Beyond R&D and customer engagement, what are the other strategies to, like, product margins and market share? And what are the strategies to tackle those competitions? And is there any risk of margins, especially in that high value IS because of this competition?

Competition will always be there. And I think it's a healthy competition where each one of us in the global market continue to upgrade our products. and our offerings to the market. And we are constantly working with our team in Europe as well as our team in India to constantly upgrade and improve our product mix and live performance of our ropes as per the customer requirements. And we are happy to say that we are making steady progress on this. On the various product lines of whether it's mining, grain, elevators, we are constantly upgrading our products. based on the needs of the customer, and that is helping us to ensure that we stay ahead of competition and keep on meeting the higher standards and expectations of the customer. Thank you.

Got it, sir. Thank you.

Thank you. The next question is from the line of Aman Kumar from AK Securities. Please go ahead.

Yes sir, good morning sir. Sir, first of all I would like to congratulate the management for delivering study numbers this quarter despite very heavy rainfall in most parts of the country and a very challenging international business environment. And the second thing which I want to congratulate the management for the very high cash flow and the company has become a net cash positive company. This is really very commendable. In the previous person who has asked the question so I want to understand that really we are seeing very good traction in the US market despite this tariffs and previously the European market was scavenging so we are seeing good traction in the European market because that is a very big market for us.

Yes, as we mentioned, you know, in both the Europe and U.S. markets, we have been able to see both the top-line growth as well as bottom-line growth in both of these markets. In the U.S. in particular, even though with the tariffs, there are tariffs headwinds and there is still some uncertainty, but we are quite sure with our healthy order book for Europe, H2, we are quite confident that, you know, this is a market in the near term that we will continue to do well. And for the long term, we're constantly working on whether it's new OEM approvals, whether it's strengthening our, you know, mining presence, trying to secure more contracts. You know, we are constantly working on that to ensure that even in these high value segments of mining, elevator, etc., we only, you know, keep increasing our market share in the U.S.

Thank you. My next question is that in the plasticated LRPC, I think we have not get much success so far as far as volume is concerned. So, when we can say this noticeable volume growth in this plasticated LRPC?

It's a good question. Thank you. Basically, plasticated LRPC requires a lot of it's a process of approval with customers take a lot of time so out of the 5 or 6 global players we have got approval with almost all of them but couple of them we are working which should happen in the coming quarters and that should result in not only start increasing the volumes to them in India but even in the international markets To answer specifically, I feel that Q4 and Q1 onwards next year, we should see significant growth of plasticated LRTC from these customers as well. Secondly, while we have orders from our other customers, but the projects were significantly delayed due to the extended lockdown, and those should start getting delivered from the quarter three and quarter four onwards. So, the existing order should also start picking up from a delivery perspective. So, overall, I think quarter four and quarter one onwards, we should start seeing a significant improvement in production and delivery.

So, my next question is that LRPC, the margins are quite muted. I think it's a very thin margin we are working with. A lot of players have entered in this segment. So whether we are making any profit in LRPC and whether we are getting some very high margin or good value orders in normal LRPC?

You see, LRPC is a very competitive product and a lot of demand is there but equally a lot of competition and supply from other competition is there. The margins have definitely come down But I would say that still it is profitable. And we expect these volumes to continue to do better in the coming quarters with a positive margin, not the high margins of earlier. But it continues to be profitable.

And sir, one more question regarding this. So, whether we are getting good volume growth and good orders in Calphine price?

I am happy to say that the Calphine or the Calstar line as our product is named as Calstar is continuing to be, have been able to get approval from most of our customers. very high ACP. The approval process is fairly long as the samples are supplied, supplies are made and delivered to different parts of the world and then we start getting repeat orders. I am happy to say that the development process has done well and we have got good response from our customers for our initial supplies and we expect to start granting of the capacity from quarter four onwards and we expect to get to our levels of five to six thousand terms a year what we have projected earlier from quarter one onwards of the next financial year.

How is the synthetic stream business performing? Are there any notable developments, new customers or growth opportunities in this business?

Thank you for asking. Yes, the synthetic screen business is a new business for us. It continues to perform steadily. We did get a couple of high-value orders, both from the European as well as Latin American market. And I'm happy to say that though it's a new business for us, it is already a profitable business. While it remains a small part of the overall portfolio, definitely it can become an independent vertical for us going forward. And since it's a complementary product to our rope and a lot of the end customers are actually similar, it can be a very good complement and value-added offering to our rope basket.

And the last question, Madam, is the company turning into this any products that are related to our existing business lines and better to the similar customer base?

Yes, of course, that most of our product lines, we are constantly looking at new opportunities to expand like the wire. We have constantly started looking at how to expand into the value-added wires. Of course, our focus would be always in the niche value-added wires and that's the constant process. So, That is definitely helping us to identify new products, new customers, and that is helping us to gradually increase our volume of higher value-added wires in the market. Similarly, on the ropes, of course, we are present in mostly all the segments, but we are constantly looking at upgrading our portfolio within these segments and trying to introduce new variants to the customers We hit mining, we hit elevator, we hit the crane ropes for different applications. And this is a constant part of our activity because that is the only way we can continue to increase the share of our radio added products and stay ahead of competition. And I'm happy to say that in most of these areas, we have been able to constantly improve our mix. and thereby helping us to continuously keep on increasing the share of specialized ropes within our wire rope portfolio.

Thank you, sir. This is from my side. Thank you.

Thank you. The next question is from the line of Moen Pindari from Asian Market. Please go ahead.

Thank you for the opportunity, Ma'am. Question is particular to steel wire segment. So what would be your EBITDA per ton in the steel wire currently?

So you know, if we look at our EBITDA per ton on an overall basis, not really break it up between rope wire and NRTC since a lot of the capacities are fungible. But if we have to give a ballpark, it would be around 10,000 rupees per ton.

whereas the key growth the value added is much you know upwards of 50-55 thousand rupees per annum so is the EBITDA pattern improving in this higher segment in last 2-3 years if you can highlight some of the trends I think it is more a focus to maintain the EBITDA pattern in this segment and try to keep on increase our portfolio and volumes

So I think the focus is to at least keep maintaining this 10,000 or around that range and to keep on increasing the volume which we have seen in the previous few quarters. And this trend would even continue going forward. The increasing of these values. But I don't think we are expecting to see the 10,000 going dramatically up or down. It would be more stable level.

So, when you say that value-added, it means... I'm sorry to interrupt in between.

Mr. Mahan, can you speak a little louder as you're not audible?

So, when you say value-added product, if you could highlight which sectors these value-added products will cater to increasingly.

Yeah, like Janskar is there. There are certain higher spring wires for the auto sector or... some wires for the transmission line business and some roping wires to our international divisions also. So, these are the various sectors which we generally operate as far as the wire segment is concerned.

Okay, and if I were to talk about volume growth, what is your target of volume growth in this wire business particularly?

In the wire business, as we mentioned earlier, our objective is to gradually take it up to take it up gradually up to 100,000 tons over the next two to three years and that is something which we are constantly working and we should be able to hopefully work to our plan to achieve that.

Sir, largely if I were to ask, can you highlight something on the competition in this wire segment to I mean, how is the competition we have in this segment? Is the capacity increasing in the industry? How is the pricing power playing out too?

Wire segment is a much larger segment compared to the rope business globally. It could be 10-15x compared to the rope business. And there are quite a few different players both in the domestic and international market. Some work on high volume, low margin business. Some work on niche products with decent margins and where the volumes may not be very high. But these require higher quality, not the commercial quality. So, Usha Margin wants to focus. I can only talk about where Usha Margin wants to focus. We want to focus on the range where there are, where they have some technical special needs and requirements which could ultimately help us in getting better realization rather than looking at pure commercial product which could have higher volumes and practically very low margins so we would like to operate in this market and the competition will always be there like we have at YRO business also globally here and each one of us want to maximize in that way so I can only talk about ourselves that we are on course to upgrade our volumes and increase our volumes with this and at the margin levels what we indicated earlier.

Sure. Thank you very much.

Thank you. The next question is from the line of Sahil Doshi from Pinkwise. Please go ahead.

Hi, good morning and thank you for the opportunity. First, sir, I would like to comment on the fabulous job done on the balance sheet and the cashless side. Just taking that forward, sir, we want to understand incrementally as we have become debt-free and we start generating significant amount of cash flow, how should we think about this cash flow or the use of cash over the next two to three years?

Good question. I think that we have, first of all, thanks for the, that yes, of course, our focus as well as the market has been to constantly improve the balance and the cash flow of the company and the entire team has worked to achieve the number what you have seen. Going forward, we expect to have our growth plans. We are further expanding our rope-making capacity, particularly in certain segments where the demands are expected to grow like elevator and train ropes in the coming years. And also, we expect to further increase our capacity to increase our wire production in order to achieve the 100,000 ton level over the period of next two to three years. Apart from this, we would also be looking at further expanding our reach in these national markets by further increasing the capacity of our distribution and service business internationally. All these requirements would be requiring cash, which we hope to achieve mostly out of our internal accruals. Apart from this, you know, if the company continues, which we are confident, we would definitely look at further improving our payout to the shareholders.

Sir, broadly, would you have any ballpark capex estimate for all of these things for the next two to three years?

Yeah, our capex would be close to including our maintenance capex would be close to 350 crores a year. That is something which we see would be definitely needed to continuously keep on maintaining our volume growth and that is something which we have in plan which is based on only the organic growth what we have. If some inorganic growth comes in, that could be additional.

Understood. Understood. And also, sir, in context of the earlier discussion, I just wanted to check, you know, two parts. I think plasticated LRPC was likely to be a growth driver and second, Saudi.

So, could you just go? Sorry, can you come again? And also...

I couldn't hear your question. Can you come again?

Hello.

Sorry.

I wanted to understand in terms of... Sorry to interrupt in between.

Mr. Sainal, the voice is not audible to us.

Hello.

Yes, sir. Please proceed.

My apologies, some issue at my end. I will repeat the question. So I just wanted to understand in terms of plasticated LRPC, what would be the volume in H1? And similarly for Saudi, how much have we done this year?

Yeah, Saudi, we don't look at individual sectors. We don't look at, because Saudi is part of our Middle East. part of this matrix and as we mentioned that the supplies have been or the demand has been fairly muted in this quarter in the last two quarters and this is part of our consolidated BW our Breton wire business but it is expected to grow in the incoming quarters. Our LRCC plasticity has been an average of just around 200 tons a month which is fairly low because of the extended monsoon and the although we have orders in hand and let's see how the projects work on site based on that only we can get delivery orders and we are able to come in so these are highly dependent on how fast the projects are getting executed it is not a standard LRPC product which gets apparently it's project specific based so We hope that in the coming quarters, we see an uptake in the demand from the projects which were growing down due to monsoon.

Sure. I just want to check that we used to guide for 20-15% sustainable volume growth. It's been 3-10 quarters where we haven't seen this kind of a number. So, when do we see that kind of an environment coming back?

As mentioned to you earlier that based in my opening remarks that based on based on the various projects and all those have been completed with the balance getting completed in this quarter. We expect the volumes should start growing from H2 of this financial year and hopefully with all these in place and also depends on how the global markets demands continue. I think capability wise the factory would be able to push higher volumes but lot of it also depends on how the global markets also plan out in the coming quarters. We are optimistic, but let us see as the global situation improves. We are ready to push up the volume should there be a little improvement in the options of the international markets.

Thank you so much and best wishes, sir. Thank you. Thank you.

Thank you. A reminder to all the participants, you may press star and 1 to ask a question. The next question is from the line of Rajesh Mojundar from 361 B&K. Please go ahead.

Yeah, good morning, Rajeev Bishreya and Abhijit. I just wanted to ask you a couple of questions. One was on the Kedarnath ropeway project and the other ropeway projects that are coming on right now. What is our status in terms of the tender here? Because we had approved, we had got some approval status now in the domestic ropeway projects. Are we seeing any traction there or are we going to get any chunk of this ropeway project?

these projects have just started you know the process of they have just been awarded the contract we are working on couple of projects where we hope that we should be able to get some some orders which are in advanced stages of experimentation but some of these projects are still a few years away and wire rope is probably the last leg of the requirement so like the Kedarnath project what we have takes 7-8 years to to get operation so wire rope would be in the last stages of course we are in touch with all the all the various project owners and we are constantly in dialogue with them to see how we could become a part of their part of their project okay so these are still some time away according to in terms of you know giving any meaningful contribution for us

Absolutely.

Secondly, sir, do you see any acquisition opportunities because by the end of this year will be net cash complete and there will be a lot of free cash flows and we are almost at the end of our CapEx program in Ratchi and Bangkok. So, do you see any kind of acquisition opportunities globally? Are they available? Are we studying them? Yeah, that was my question.

Yes, of course, we are already a net cash company as on September and that would continue to improve. As mentioned, there is a pipeline of CapEx both at our Ananshi plant as well as our other manufacturing facilities which are ongoing and some more are expected to basically take care of the increased demand from certain sectors, whether it's value-added wires, value-added LRPC, whether it is whether it is the elevator frame ropes. So that is something which will be ongoing and we would continue as our ground field expansion in our various facilities. Apart from this, we would definitely look at opportunities to further increase our presence in the international market with our food for value-added offerings. But nothing is on the table at the moment. But that is definitely, there is an endeavour to look at an opportunity and if and when it comes, we would definitely be keen to expand our presence in the international market for our value-added products and services.

And so my last question is, though you highlighted a better product mix, if you look at the realisation pattern in wire ropes, it is still lower compared to 1Q and 2Q and probably slightly higher than last year. Is that a concern? I mean, is there a price walk still going on in Europe, etc., which, you know, can lead to realizations being low in the wire rope business?

So, what have we seen? Realization for wire rope has increased from Q1, both in international and in domestic market, right? So, there is no reduction in the realization for wire rope.

So, if you do per term basis is to 2,42,000 compared to 2,61,000 in one key.

So, we can share with the numbers separately.

As per our calculations, both has increased, both domestic and international from Q1.

Thank you. The next question is from the line of Aditya Arora from P4 Tapitan. Please go ahead.

Good morning Rajivji, Shreya and MDG. Firstly, congratulations on an amazing performance by all the headings, especially on the balance sheet and the margin count. As I said, two questions. One was a follow-on question to the previous participant. How do you see the competitive intensity in Europe? And the second was, there was a lot of initiatives taken by the government of India on shipbuilding. We wanted to understand how are we positioned in marine shipyard segment in terms of being able to capture the new shipyard port expansion in land waterways segment, both in terms of product excel and approvals?

Good question. As far as the shipyards are concerned, Usha Martin is very strong in our product portfolio of shipping not only across all the continents and we are supplying to quite a large amount of the shipping liners through our various subsidiaries and through our dealers in India and that is something which we will continue to do so. We are in touch with all the various shipyards in the country as well as the new shipyards coming in different parts and we are not only in the shipyards but also in the ports where we consider these two as part of a common group of portfolio of products and we are fully geared with all the approvals as well as the entire product offering to be able to serve to these customers and as these projects start coming up we are well positioned to take our share in this market. As far as the European market is concerned, the demand is stable and slightly positive in certain sectors and the competition is equally there with all the European and the Korean players. We all work in the same market and the intensity is always there And I'm happy to say with our one Usha Martin of those who are working with our Usha Martin India plant and the BS UK plant and the product offering through this route directly to the customers, we are not only competitive but are able to offer much quicker delivery schedules, which is helping us to continuously increase our market share in the European market.

Thank you, sir.

Thank you. The next question is from the line of Rajesh Agarwal from Maniur. Please go ahead.

My question is, what is the size of opportunity when the ropeway order comes for that Kaidana, then Rudyapurak and all? Or you can quantify in terms of kilometer, what can be the rise of the orders?

The wire rope is a very small part of the entire project cost. It would be less than 1 or 2 percent of the project cost. And as mentioned earlier, in one of the questions, it is almost 7 to 8 years each of these projects take to get commissioned. And the wire rope comes as one of the last part of the project. So, it comes only after 5 or 6 years. So, most of these big projects, particularly I can talk about Kedarnath, they are talking the execution time between 7 to sometimes even 8 to 9 years on this. So, and the project cost, the rope part would not be more than 1 to 1.5% of the project cost.

Then the domestic growth will come from which sector, sir?

Elevator is one sector which is growing well. The ports are also ports, elevator, mining, as well as the construction and the crane rope. These are the four sectors which should, and all these depend on how the economy grows and how the industrial production growth but assuming that those growth at the levels these are the four sectors in which we expect growth coming here and so the last question is on working capital again the working capital has increased any particular reason in this quarter for the working capital to go is to go as we mentioned in our opening remarks that working capital is calculated well done last 12 months average since we had a higher base in September 24 the average working capital rate has gone up But if we take September as the exit and calculate based on September numbers, it will be down by 5 to 6 days. So, it will be similar to September. Thank you.

Thank you. The next question is from the line of Aman Kumar from AK Securities. Please go ahead.

Sir, one last question is that regarding the cable bridges over the rivers. So, how big this opportunity is? I think it's a big opportunity going forward.

Yeah, these are all project related businesses and as India is expanding its river connectivity as well as some of these big metro cities are connecting the coastal roadways, this is a good opportunity and We are well positioned to be it any lock-file bridges coming or any of these LRPC classificated or any of these suspension bridges, any types of offerings in terms of ropes and we are well positioned. But all these, we expect the demand to be good, but it is also important to understand how these projects get implemented in the country. And we are ready to be part of any of these projects. And we have mostly all the approvals except a couple of LRTC customers where we are in the process of finding stages of approvals.

Okay, sir. Thank you.

Ladies and gentlemen, for the participants, that was the last question for today. I now hand the conference back to the management for closing comments.

I would like to thank everyone for attending this 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 CDR India. Thank you once again for taking the time to join us on this call and see you all in the next quarter. Thank you.

Thank you very much. On behalf of OSHA Martin Limited, that concludes this conference. Thank you for joining us today and you may now disconnect your lines.