Usha Martin Gdr 144A

Ladies and gentlemen, good day and welcome to the earnings conference call of OSHA Martin Limited. As a reminder, all participant lines will be in the lesson 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 an operator by pressing start and zero on the touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Dev Rishi Singh of CTR India. Thank you and over to you, sir.

Thank you, Rituja. Good evening, everyone, and thank you for joining us on Usha Martin's Q4 FY26 Earnings Conference Call. We have with us Mr. Rajiv 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 earnings documents that we shared with you earlier. We will initiate the call with opening remarks from the management, following which we will open the forum for 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 Usha.

Good afternoon, everyone. On behalf of the Usha Martin Management Team, welcome to our earnings call for the fourth quarter and full year ended March 31, 2026. I'll start with the financial results, cover the key drivers behind them, and also share our outlook for the year FY27. We closed FY26 with consolidated revenue of Rs. 3,691 crores. Operating EBITDA grew from Rs. 597 crores last year to Rs. 705 crores this year, reflecting a margin of 19.1%. Operating cash flow conversion was healthy at 104% of the operating EBITDA. we ended the year with a net cash position of Rs. 332 crores compared to a net debt of Rs. 63 crores in the previous year. In Q4, revenue stood at Rs. 979 crores, up 9.3% year-on-year. Operating EBITDA was Rs. 212 crores, the highest since the sale of the steel business with margins at 21.6% and EBITDA per ton at approximately Rs. 39,500 per metric ton. So what drove these numbers? Our international rope business performed well, especially in Europe and the Americas. Segments like trains, elevators, and mining saw good traction. Over the past few years, we have invested in expanding capacity and deepening our technical capabilities of high-performance ropes in India. That groundwork is paying off. With Ranchi's upgraded manufacturing capability and Brunton Shaw's brand integrated together, we are executing larger, more complex projects for global OEMs and end-users. During the quarter, we executed a landmark OceanMax project at our Ranchi facility, including the largest single-reel rope production ever undertaken in our Ranchi plant. This is a tangible example of the capability our recent capital investments have created. Alongside this, our One Usha Martin program continues to drive efficiency across the group. So our cost basis becomes structurally leaner, while revenue is shifting towards higher value products, geographies, and applications, giving us clear operating leverage. Having said that, the operating environment did pose some challenges this quarter. The ongoing conflict in the Middle East led to slower customer activity, and project delays in both Dubai and the Saudi Arabian markets. Supply chain in this region were also disrupted, affecting the timing of some shipments. Volumes in the Middle East came in below normal levels. The broader geopolitical situation also created tightness in raw material availability, putting pressures on input costs. we were able to manage through this effectively. First, we proactively built additional raw material inventory to ensure continuity of supply with no disruptions to production at all. Second, in wire and LRPC, we passed through the input cost increases, so margins were not impacted. Third, in rope, a better product mix with a favorable shift towards higher value-added applications, improved realizations and margins, while also helping manage volatility in rod and gas prices. Fourth, while the Middle East was softer, we continued to see healthy demand in other markets, which more than compensated. And fifth, faster decision-making meant we stayed ahead of the situation rather than reflecting to it rather than reacting to it. All in all, the way we navigated this quarter gives us confidence in the resilience of our business model, which is very diversified across products and industries and geographies. Looking ahead, growth remains a key priority. there are three areas that give us confidence about this financial year ahead. The first area is value-added rope applications. Oil and offshore, elevators, port cranes, and mining. We have built references and field performance data in these segments over time, and the track record now lets us approach a wider set of customers. We are already seeing this play out with growing order book from new customers for H1 this financial year. In oil and offshore specifically, there is an added tailwind. More countries are prioritizing energy security, and that's driving demand that we are well positioned to capture. Beyond core role, some of our newer business verticals are maturing well. Potion fiber synthetic business and plasticated LRPC are two examples where the time we put to product development, technology work, and customer approvals have created platforms that are ready for the next stage of growth. We expect meaningful scale-up in F527 and beyond. And finally, From a capital allocation standpoint, with strong operating cash flows and a positive net cash position, we have the bandwidth to invest from internal accruals. We'll continue targeted capital expenditures where demand visibility is clear, and we are also evaluating selective organic and inorganic opportunities in markets where our footprint is still limited. In summary, We enter FY27 from a place of strength, a healthy balance sheet, a richer product mix, and growth engines that are beginning to deliver. The hard work of building the foundation is largely done. Now it's about execution and scaling up. With this, I would now like to invite our CFO, Mr. Abhijit Paul, to take you through the financial highlights for the quarter, and the year-ended. Thank you.