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.

Usha Martin Limited , a leading global specialty wire rope solutions provider, has reported a strong start to the fiscal year, with significant growth in revenue and strategic advancements in its operations.

Financial Highlights

For the first quarter, Usha Martin posted consolidated revenue from operations of Rs. 887.20 crore, marking a 7.40% year-on-year increase. This growth was primarily driven by a 10.40% rise in sales volumes across the company's core segments.

The company's profitability remained resilient despite market challenges. Operating EBITDA stood at Rs. 144.60 crore, with a margin of 16.30%. Net profit for the quarter was Rs. 100.80 crore, demonstrating the company's ability to maintain strong bottom-line performance.

Segment Performance

Usha Martin's Wire and Wire Ropes segment, which constitutes the majority of its business, saw revenues increase to Rs. 870.75 crore in Q1, up from Rs. 793.80 crore in the same quarter last year. This segment contributed 72% to the overall sales, unchanged from the previous fiscal year.

Notably, the Wire segment registered a substantial 32.30% year-on-year increase in revenues, while the Wire Rope segment recorded a 7.90% growth.

Strategic Initiatives

The company is making significant progress with its 'One Usha Martin' transformation strategy. This initiative aims to create a more agile, integrated, and future-ready organization, enhancing Usha Martin's ability to scale operations while optimizing costs.

Rajeev Jhawar, Managing Director of Usha Martin, commented on the performance: "We have commenced the fiscal year on a stable note, reporting a volume increase of 10.40% year-on-year, led by growth in our wire and wire rope segments and supported by sustained demand across key markets."

Expansion and Future Outlook

Usha Martin is currently expanding its Ranchi facility capacity, which is progressing as per schedule. This expansion, coupled with a robust order pipeline across international and domestic markets, positions the company for accelerated growth in the coming periods.

The company has successfully achieved a net debt-free position at both standalone and consolidated levels, reflecting its strong financial management and cash flow generation.

Market Position

Usha Martin continues to strengthen its global presence, with international business contributing 57% to the overall revenue in Q1. The company's diverse geographical presence spans across India (43%), Europe (26%), Asia Pacific (14%), Middle East & Africa (9%), and America (8%).

Conclusion

With its strategic 'One Usha Martin' initiative, ongoing capacity expansion, and strong market position, Usha Martin Limited is well-positioned for sustained growth. The company's ability to maintain profitability while investing in future capabilities demonstrates its resilience and strategic foresight in the competitive wire and wire rope industry.

As Usha Martin moves forward, it anticipates realizing stronger outcomes from its transformation initiatives, setting the stage for a meaningful step-up in its growth trajectory.