New Plans For Usha Martin In FY 2023-24: Shareholders Expect Increased Revenue Generation With Culmination Of The Previous FY

Usha Martin

Usha Martin Limited underwent the incorporation process in the year 1986 under the name Usha Beltron Ltd. Usha Martin Limited, together with its subsidiaries, manufactures and sells wires, wire ropes, and strands products in India and internationally. The company is one of the world’s leading manufacturers of wire rope. Their wire rope manufacturing facilities are located in Ranchi, Hoshiarpur, Dubai, Bangkok and UK.

The company offers wire ropes, including oil and offshore, crane, mining, elevator, fishing, aerial, and general engineering ropes, as well as ropes for conveyor cords and structural systems. The first wire rope reel rolled out of the company in 1962. Its public issue in 1961 was oversubscribed by more than 300 per cent. In 1963, Rajeev Jhawar Usha Martin Limited paid its maiden dividend and doubled the production from 3,600 tonnes to 7,200 tonnes in just two-and-a-half years.

Rajeev Jhawar, the Managing Director of Usha Martin Limited has always put significant emphasis on the continual improvement of Usha Martin’s products. Revenue of Usha Martin from exports on consolidated basis grew from Rs.1034.26 Crore in the FY 2020–21, to Rs.1366.24 Crore during FY 2021–22, an increase of 32.10% and this is continuously improving this year also.

Usha Martin: Are insiders aligned with shareholders?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, small purchases are not always indicative of conviction, and insiders don’t always get it right. Usha Martin insiders spent ₹8.6m on stock, over the last year where in contrast, any selling was not seen. This is a good look for the company as it paints an optimistic picture for the future. It is also worth noting that it was company insider Stuti Agarwalla who made the biggest single purchase, worth ₹6.8m, paying ₹136 per share.

The good news, alongside the insider buying, for Usha Martin bulls is that insiders have a meaningful investment in the stock. To be specific, they have ₹2.4b worth of shares. That shows significant buy-in, and may indicate conviction in the business strategy. Even though that’s only about 4.3% of the company, it’s enough money to indicate alignment between the leaders of the business and ordinary shareholders.

Huge growth in revenue generation for Usha Martin — Rajeev Jhawar, the man behind this target

In addition to enriching the product mix and expanding footprint in new geographies, Rajeev Jhawar Usha Martin will also continue to focus on areas like enlarging product basket and deliverables, moving up the value chain through service networks, strengthening network and market reach through digital platforms, strategic brand positioning and imbibing environmental, social and governance aspects in their business practices. Profit generation has been the result of all this hard work and planning that the company had put into work.

With the culmination of the FY 2022–23, Usha Martin is hoping to remain profitable more than ever and celebrate the increase in revenue for consecutive years. The expansion plans and ways to be more sustainable and resilient and built up in the background for the next financial year and Rajeev Jhawar and Usha Martin is set to go leaps and bounds with the new increased zest and passion. With these plans in hand, Rajeev Jhawar Usha Martin Limited remains confident of making deeper inroads into international markets with high contributory products.

Major Expansion Plans For Usha Martin In FY 2022-23: Plans Under Preparations – Rajeev Jhawar

The commencement of the fiscal year 2021–2022 marked the onset of the second wave of the pandemic in India. Though the effects of the second wave was devastating from a social perspective, the severity of the impact on the economy was more subdued as compared to the previous fiscal. The economy continued on its path of recovery underlined by a marked increase in public sector capex spending, especially infrastructure, robust exports, services sector rebound and improved consumption levels.

rajeev jhawar

The Ukraine and Russian conflict also led to escalating input prices of high carbon wire rods and the prices had hit an unprecedented high by early March 2022. Since international crude oil price is expected to remain firm, an uptick on the demand side is expected in the oil and gas market segment globally which will boost demand for products of the Usha Martin such as large diameter ropes and drilling lines, says MD Rajeev Jhawar.

According to Mr. Rajeev, quickly anticipating these challenges posed by the pandemic was the most important step that helped the company remain resilient in the previous financial year. “We, as an organisation, were quick to anticipate these challenges and undertook several mitigation measures to ensure our businesses remained resilient. We were successful in maintaining our margins and profitability by enriching our product mix to highvalue products, and also by increasing our penetration in newer geographies like Australia and South Africa”, he said.

usha martin

Increasing market penetration in newer geographies bore dividends, as the revenue of Rajeev Jhawar’s Usha Martin from exports on consolidated basis grew from Rs.1034.26 Crore in the FY 2020–21, to Rs.1366.24 Crore during FY 2021–22 an increase of 32.10% and is continuously improving this year also. Usha Martin is currently preparing for more expansion under leadership of Rajeev Jhawar. This includes enhancing their product mix, focusing on building share in international markets and investing in capacity increase.

“We are in the process of expanding our capacities for rope production, focusing on high-end ropes, specialised wires and also LRPC. We have capital expenditure planned to the tune of approximately Rs.285 Crore and expect to complete our expansion programme over the next 12–15 months”, Rajeev Jhawar Usha Martin MD said.