Usha Martin , a leading wire rope manufacturer, has entered into a significant real estate transaction, signing an agreement to sell a parcel of land for 29.52 crore rupees. The deal marks a strategic move for the company as it divests non-core assets.

Deal Details

The agreement, inked with UGP Engineering Private Limited, involves the transfer of leasehold land measuring approximately 10.11 acres. The property, located in Sriperumbudur, Tamil Nadu, includes structures, plant, and machinery. This sale aligns with Usha Martin's strategy to optimize its asset portfolio and focus on core business operations.

Transaction Highlights

Strategic Implications

The sale of this non-core asset is expected to strengthen Usha Martin's financial position. By divesting land that is not central to its primary operations, the company can potentially redirect resources towards its core wire rope and wire products business.

Market Impact

This transaction comes at a time when Usha Martin has been focusing on enhancing its operational efficiency and market presence in the wire rope sector.

Regulatory Compliance

Usha Martin has confirmed that this transaction does not fall under related party transactions and is conducted at arm's length. The company has duly informed the stock exchanges as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As Usha Martin continues to streamline its operations and focus on core competencies, this land sale represents a step towards optimizing its asset utilization. The market will be watching closely to see how the company deploys the proceeds from this sale to drive growth in its primary business segments.

Usha Martin , a leading wire rope manufacturer, has reported a 7.4% year-on-year increase in consolidated revenue for the first quarter, reaching Rs. 887.00 crore. The company's performance was driven by strong volume growth across key segments, particularly in its wire and wire rope divisions.

Key Financial Highlights

Segment Performance

• Wire ropes segment (72% of total revenue): 7.9% YoY growth
• Wire segment: 32.3% YoY growth
• LRPC segment: 3.4% revenue decline due to market headwinds

Operational Highlights

The company's 'One Usha Martin' transformation program has largely completed its foundational phase, with more tangible benefits expected in the second half. Management is targeting an 18% EBITDA margin for the full year and 19-20% margins for the following year.

Rajeev Jhawar, Managing Director of Usha Martin, stated, "We are pleased to report a stable start, with consolidated revenues driven by a year-on-year volume growth of 10.4% across our key segments."

Market Dynamics and Strategy

Usha Martin faces challenges from 50% US tariffs on steel wire ropes but remains optimistic about passing costs to customers. The company has secured a sizable tender in the US market, providing strong order visibility for the rest of the year.

The company's synthetic sling solution, Oceanfibre, has gained faster-than-expected traction, with strong brand acceptance in offshore, subsea, and heavy-lifting applications.

Expansion and Future Outlook

A new capacity expansion of 40,000 tons is underway, including 20,000 tons of rope capacity at the Ranchi plant. The company has also successfully increased direct shipments of high-value segments from India to European customers.

Shreya Jhawar from the Strategy and Growth team commented, "We are confident that strategic groundwork laid under the 'One Usha Martin' initiative combined with disciplined financial approach positions the Company well for the next phase of growth."

Financial Position

The company has strengthened its balance sheet, achieving a consolidated net cash position of Rs. 14.00 crore as of the quarter-end, compared to a net debt of Rs. 63.00 crore in the previous quarter. Operating cash flow before tax for the quarter stood at Rs. 137.00 crore, translating to approximately 95% of operating EBITDA.

Abhijit Paul, Chief Financial Officer, added, "Our disciplined capital allocation approach ensures that both ongoing and planned growth initiatives remain well-funded."

As Usha Martin navigates global challenges, including tariff pressures and market uncertainties, the company maintains a cautiously optimistic outlook, focusing on operational efficiencies, product innovation, and strategic market expansion to drive sustainable growth in the coming quarters.