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