Usha Martin MD Rajeev Jhawar discusses FY2023 earnings on conference call
With more than 60 years of experience, Usha Martin is among the top producers of speciality steel wire ropes in the world. The company provides a wide selection of goods, such as speciality wire ropes, premium wires, LRPC, end-fitments that are made to order, accessories, and related services. Oil and gas, ports, cranes, lifts, mining, fishing, renewable energy, building and infrastructure, and general engineering are just a few of the industries that use these goods.
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| Usha Martin |
In order
to improve its commercial relationships, the company holds a conference call to
discuss its FY2023 earnings for the community of analysts and investors.
According to Rajeev Jhawar, MD of Usha Martin Ltd., "Our goal is to hold
such forums regularly in the future with the aim of increasing transparency and
building a stronger relationship with the investors and analyst community."
Along
with sites abroad in Thailand, the United Arab Emirates, and the United
Kingdom, Usha Martin has production facilities in India. The business strategy
focuses on stocking and selling through its own distribution hubs in Southeast
Asia, Australia, Europe, the US, and the United Arab Emirates, as well as
making some direct sales from the facility. UML has specialised service centres
where they add value by cutting, socketing, testing, inspecting, and other
processes. The business also operates a global R&D facility in Italy where
it develops its own software for designing wire ropes.
Additionally,
Rajeev Jhawar Usha Martin provided information on how Usha Martin reduced their business's
debt. Usha Martin formerly worked in the steel manufacturing industry, which
was adversely affected by both the severe industry slump and the Company's high
level of borrowing. To overcome these difficulties, they decided to sell off the
steel company through a slump sale. It is significant to note that the Company
never experienced a default, did not seek a debt restructure, and received no
lender haircut. Through this effort, the company was able to drastically reduce
its debt and improve its financial and operational situation. Despite the fact
that it was a difficult choice at the time, it assisted in our transition from
a commodities firm to a value-added, high ROC business, Rajeev Jhawar said. Due
to this, Usha Martin was able to increase their margins and profitability
despite the fluctuating price of their raw material, which is essentially
steel.
“Additionally,
the industry has a high entrance barrier due to the lengthy client approval
process and complex applications. As some of you may be aware, wire ropes are
highly developed goods that must adhere to the highest requirements for
dependability and performance. Usha Martin has taken strategic steps to improve
its wire rope production capacity, diversify its product line, reorganise its
costs, secure its raw material sources, and strengthen its financial position
in light of its increased focus on the specialised wire rope sector”, Rajeev
Jhawar explained.
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| Rajeev Jhawar |
He
finished by stating that Usha Martin has overcome its previous obstacles and
has made significant development over the past three years. He firmly believes
that Usha Martin is going through an interesting time right now. Rajeev Jhawar
is certain that the business is in a position to take advantage of the enormous
growth potential the sector has to offer. He anticipates continued support from
the community and investors as they embark on a journey to build long-term,
sustainable value for all stakeholders.
The
session was carried on by Mr. Anirban Sanyal, CFO of Usha Martin, who then
explained through the operational and financial highlights for the quarter
ended 31st March 2023.
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