Q3 FY 24 Results. Decent Results.
Value added products save the day for Usha Martin.
Operating EBITDA up 23.7% Y-o-Y to Rs. 157.1 crore
PAT increases 27.9% Y-o-Y to Rs. 107.5 crore
Consolidated Performance Overview – Q3FY24 vs. Q3FY23:
• Revenue from operations decreased by 4.4% Y-o-Y to Rs. 797.1 crore in Q3FY24
o The core Wire-Rope segment revenues held steady, despite Y-o-Y reductions in sales volumes
and raw material prices, supported by enhanced realizations
o Realizations were supported by continued contribution from international markets and value-added
offerings
• Q3FY24 Operating EBITDA stood at Rs. 157.1 crore as against Rs. 127.0 crore, higher by 23.7% on a Y-o-Y basis .
• In the quarter, the Operating EBITDA margin was recorded at 19.7%, an increase from 15.2% in Q3FY23
o The Company’s sustained strategic emphasis on value-added products, coupled with its
expanding global presence, has been instrumental in enhancing margin performance consistently
o EBITDA margins including other income for Q3FY24 stood at 20.4%, compared to 15.8% in Q3FY23
• In Q3FY24, PBT amounted to Rs. 139.6 crore, registering a 27.3% Y-o-Y increase from Rs. 109.6 crore
• In Q3FY24, PAT amounted to Rs. 107.5 crore, registering a 27.9% Y-o-Y increase from Rs. 84.1 crore
• Basic EPS stood at Rs. 3.53 for the quarter as against Rs. 2.76 Y-o-Y
Commenting on the performance Mr. Tapas Gangopadhyay, Non-Executive Director said, “
Our strategic focus on high value wire ropes has ensured continued strong profitability, with our Operating EBITDA growing at 23.7% YoY during the quarter. However, this quarter had subdued contributions from our Wire & Strand and LRPC segments which impacted topline.
Capex: Our wave 1 Capex program, poised for commissioning, is a testament to our commitment to expanding our product portfolio in high-end value-added products across our business verticals. This strategic investment also reflects our ambition to set a new benchmark for excellence and to solidify our standing as a premier global player in the wire rope sector.
Looking ahead, Usha Martin is well-positioned to leverage its core strengths to drive future growth. Our improved financial and operational standing forms the foundation of this strategy. We are particularly confident in the strength of our in-house manufacturing and R&D capabilities, which, combined with our diverse product range and dedicated after-sales service, position us to effectively meet and adapt to global market challenges.
Our extensive network and established brand reputation further reinforce our capacity to secure sustained growth and value creation for all stakeholders.”
Press release:
c08021b6-4a35-496a-adab-d11fb14728b3.pdf (bseindia.com)
Investor Presentation:
b5b4658c-f563-4265-b79d-3274c99bfb7a.pdf (bseindia.com)
Discl: Invested from lower level.
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