The impact on iron ore companies is minimal to negligible. GPIL has minimal to negligible impact. TATA Steel and SAIL will have a major impact.

In the previous quarter, the materials purchased were added to the inventory, resulting in a negative value for Cost of Goods Sold (COGS). This quarter, the materials are being used from the existing inventory, which leads to a positive COGS.

Studying and would appreciate thoughts & views of those who have been holding / tracking since a while.

Lakshya project seems to be unique & good and commentary is positive for this year.

Are they building moat with this custom software based approach and will it be a solid story in time to come?

I attended the AGM for Usha martin yesterday. Below are my brief notes. Any mistakes are solely mine in capturing and drafting them:

• We went through a challenging period with significant learnings from past mistakes.

• After selling the steel business to Tata, the focus shifted entirely to the wire rope business.

• Continuous improvement in business performance over the last 5 years, despite the initial impact of COVID-19. Focused on maximizing resources, capacities, and capabilities during the first 2-3 years.

• Focused on integrating all the international businesses in the company.

• Initially focus was on consolidation before launching an expansion program.

• Current expansion involves an investment program of approximately ₹300 crores, with allocations as follows, to be implemented over the next 2-3 years:

• • 67 crores in our Thailand plant,
• • 40 crores in our European business, and
• • the rest in our plant in India [~190 cr ]

• Implemented digital initiatives:

• • upgrading SAP to HANA and rolling it out across all subsidiaries to improve efficiency and information access.
• • Salesforce to improve integration with subsidiaries and enhance customer service.

• The company plans to partner with government initiatives like Parvat Mala for upcoming rope projects across India.

• R&D is the backbone for UM, its supported by a center in Italy that collaborates with all with our manufacturing facilities and customers.

• Women empowerment: For UM In India percentage is low, but have taken major initiatives for recruiting more women. Internationally have a good balance.

• Renewable energy: Evaluating setting up Solar projects. Considering a few options right now. Will be investing in the next couple of years.

• Compliant with all ISO systems, essential for global supply capabilities.

• Partnering with Dupont to enhance safety standards across the organization, including fire, process, occupational health, and electrical safety.

• Two joint ventures (JVs):

• • Pengg USHA in Ranchi, showing good performance over last 2-3 years, with plans for expansion.
• • The other JV is with a corporation of Japan [Kobelco?] – has been for last 10 years. acquired the remaining 50% stake from them in Feb this year. Its well-integrated with our Usha Siam facility. incrementally increasing production, should give good returns over the coming years.

• QIP: No plans for a QIP in the near future, as the company is almost debt-free, with most projects funded through internal accruals!

• Employs approximately 3,000 permanent employees globally.

• Raw materials suppliers: 4 suppliers include Tata Steel, JSPL (40km away from Ranchi plant), JSW, and possibly [Electro Steel?] – excellent relationship with them

• Shipping: Global geopolitical challenges are resulting in longer shipment times from India, Thailand, to Europe and US, because of the Dead Sea issue – is resulting in delays in in the time required to reach. this is also resulting in increasing the inventory within the system, and 1 of the reasons why the inventory turnover is are higher.

• Domestic market: is robust, supported by government infrastructure projects and public private sector to spend more investment on capex – more demand for wire ropes – expect growth in both domestic and international markets.

• Credit rating recently upgraded from A to A+ with a stable outlook by India Rating, this is expected to reduce the cost of funds in the future.

@dm88 but if you listen to their concall, they themselves describe themselves a s a trading company.