This article first appeared on GuruFocus .
Release Date: November 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Usha Martin Ltd ( BOM:517146 ) reported a steady financial performance with consolidated revenues of INR 908 crores, reflecting a year-on-year growth.
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The wire segment showed a robust 14.2% year-on-year revenue increase, indicating sustained demand.
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The company achieved a significant reduction in debt, repaying INR 157 crores, fully funded through internal accruals, resulting in a net cash position of INR 111 crores.
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Operating cash flows before tax stood at INR 390 crores, translating to a strong 123% conversion of operating EBITDA to cash flow.
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The 'One Usha Martin' transformation initiative has started showing early positive impacts, aligning global teams and operations under a unified vision.
Negative Points
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The LRPC division reported a 26% year-on-year decline in volumes, impacting overall performance.
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Volume growth was below expectations, particularly in the rope and LRPC segments, due to operational and market factors.
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Delays in commissioning new machines for high-performance ropes affected production volumes.
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The domestic market experienced subdued growth due to delayed monsoon and softer demand environment.
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Demand in key international markets like Saudi Arabia is improving slower than expected, affecting volume growth.
Q & A Highlights
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Q: What is the sustainability of EBITDA margins for Usha Martin's core business, especially with the normalization of LRPC sales? A: Managing Director, Rajeev Jawar, explained that while LRPC volumes are expected to improve, the absolute EBITDA numbers will rise, though the per metric ton figure may reduce. The 19.1% margin is partly due to cost optimization under the "One Usha Martin" initiative, which reduced fixed costs by 10%. The company aims to maintain these EBITDA levels as volumes ramp up in the wire rope segment.
Q: Which international markets are driving Usha Martin's growth, and how is the company managing US tariffs? A: Strategy and Growth Team Member, Shreya Jaar, stated that growth is primarily driven by Europe and the US, with Europe contributing 28% and the Americas 9% to the top line. The company has passed US tariffs onto customers, minimizing margin impact. Usha Martin is also focusing on expanding in Canada and Latin America to increase market share.
Q: How is Usha Martin addressing competition in high-value wire segments? A: Managing Director, Rajeev Jawar, emphasized that competition is healthy and drives product upgrades. Usha Martin is focusing on improving product mix and performance in mining, crane, and elevator ropes to stay ahead of competitors and meet customer expectations.
Q: What is the outlook for Usha Martin's plasticated LRPC volumes? A: Managing Director, Rajeev Jawar, noted that approvals from global players are in progress, with significant volume growth expected from Q4 and Q1 next year. Existing orders delayed by monsoon are expected to pick up in Q3 and Q4.
Q: How does Usha Martin plan to utilize its cash flow now that it is debt-free? A: Managing Director, Rajeev Jawar, mentioned plans to expand rope-making capacity, particularly in elevator and crane ropes, and increase wire production to 100,000 tons over the next 2-3 years. The company also aims to expand its international distribution and service business, with CapEx funded through internal accruals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
