Ranvir’s Portfolio

Usha Martin Q1 concall highlights-

Offers wide range of-

Specialty Wire ropes
High Quality Wires
LRPC wires
Bespoke end fitments, accessories & related services

Consol Q1 outcomes-

Sales- 814 vs 760 cr
EBITDA- 146 vs 117 cr ( margins @ 17.9 vs 15.5 pc )
PAT- 101 vs 82 cr

Segmental revenues –

Wire ropes – 553 vs 481 cr, up 15 pc yoy
Wire and Strands – 65 vs 86 cr, down 24 pc yoy
LRPC – 116 vs 148 cr, down 22 pc yoy

Segment wise sales contribution –

Wire Ropes – 68 vs 67 pc
Wire and Strand – 8 vs 10 pc
LRPC – 14 vs 15 pc

Increase in rope sale in line with company’s strategy to focus on value added products

Volume wise data –

Wire Ropes – 23k vs 21k MT
Wire and Strands – 7k vs 9k MT
LRPC – 14k vs 17k MT

Geographical sales breakdown –

India – 44 pc
Europe – 24 pc
America – 7 pc

Middle East & Africa – 11 pc
Asia Pacific – 14 pc

In Q1, within Wire Ropes the share of speciality ropes ( for cranes, elevators, oil & offshore, mining, fishing ) increased from 65 to 71 pc

Revenues increased in Q1 despite YoY fall in RMs due better mix of value added sales

Exports in Q1 were up 13 pc

Nett Debt down to 99 cr vs 185 in Mar 23 despite 68 cr of Capex spend in Q1 – due very healthy cash flow generation

EBITDA / Ton @ Rs 32230 vs 26470 in FY 23 vs 19625 in FY 22 vs 15880 in FY 21

Committed to maintain > 18 pc EBITDA margins

Intend to improve the margins further as the product mix improves

As wins new international customers, margins can improve significantly. Current guidance is conservative

New wire ropes Capex to be concluded by Q3. Fresh volumes to start flowing in from Q4

Full ramp up to happen in 3-4 Qtrs

LRPC realisations are under pressure due capacity additions from Jindal Group, Tata Steel. Company now focussing on plasticated and galvanised LRPC products to differentiate and to add value

Hope to be Debt free by end of FY 24

Ranchi capex of aprox 350 cr to be completed by Q3. Has the potential to add 800 cr of annual sales at full capacity. Also, the products breakup from this new capex will favour the Higher Margin Speciality business

Chinese are not significant players in the value added segments

Guiding for 13-15 pc volume growth this yr and next yr despite volume contraction in Q1 !!!

Globally, Wire Ropes are growing at aprox 5 pc / yr. Company is gaining mkt share in international Mkts due better pricing vs Intl players and increased efforts towards customer service

Company’s global Mkt share is 5 pc. Intend to take it to 7-8 pc in medium term

Also looking to add value in the Wire segments for both domestic and export Mkts. This is also a huge mkt and can offer a lot of growth opportunities

In 2-3 yrs, EBITDA margins can be upwards of 20 pc due continuous focus on value additions

Disc : holding, biased