Usha Martin (517146) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue from operations rose 1.5% YoY to Rs. 826.4 crore, with operating EBITDA up 5.7% to Rs. 154.0 crore and margin improving to 18.6%, despite macroeconomic and geopolitical challenges.

• Core wire rope revenue rose 7.5% YoY; wire segment revenue up 8.9% YoY; volumes in wire rope and wire segments increased 7.8% and 19.8% YoY, respectively, offsetting a decline in LRPC.

• Value-added products now comprise 54% of revenue, up from 51% in FY24; international markets contributed 56% of total revenue.

• CapEx ramp-up underway, targeting capacity and value addition, with new plasticated LRPC products and synthetic slings introduced.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2024; new Company Secretary and ESOP plan announced.

Financial highlights

• Consolidated net revenue at INR 826 crore in Q1 FY25, up 1.5% YoY; net profit for the quarter was INR 104 crore, a 3.1% increase YoY.

• Operating EBITDA reached INR 154 crore (up from INR 146 crore YoY); EBITDA margin improved to 18.6% from 17.9% YoY.

• Net debt reduced to INR 73 crore as of June 2024, down from INR 124 crore in March 2024.

• Standalone revenue for Q1 FY25 was Rs 51,411 lakhs, with net profit after tax at Rs 6,886 lakhs.

• Basic and diluted EPS for Q1 FY25 stood at Rs 3.42 (consolidated) and Rs 2.26 (standalone).

Outlook and guidance

• Anticipates gradual volume ramp-up over next 6-9 months as CapEx comes online, supporting performance in H2 FY25.

• Expects 10% volume growth in ropes and wire segments; LRPC focus shifts to value-added products.

• EBITDA per ton expected to be maintained at INR 32,000+; margin stability targeted through product mix.

• Management confirmed ongoing operations are unaffected by legal proceedings and expressed confidence in the company's legal position.

• Growth expected from international markets and domestic infrastructure projects, with synthetic slings and elevator ropes as key drivers.