Usha Martin Q1 profit at Rs 19 crore
Usha Martin is renowned company, known for manufacturing steels and wire rope. It has bounced back into the black in the first quarter of the current financial year with a standalone net profit of Rs 19 crore against a loss of Rs 98 crore in the year-ago period. Improved realisations and strong domestic demand has drove the results.
It was reported that the turnaround came even as the Kolkata-based company continued to hold discussions on sale of its steel business with potential buyers as Tata Steel, JSW Steel, Liberty House and Kalyani Steels to pare its Rs 3,700-crore debt.
In the quarter that ended on June, company’s standalone revenue increased to Rs 1,219.86 crore, up 30.3% from Rs 936 crore a year ago, while total EBITDA shot up 120.8% and 94.1% year-on-year on standalone and consolidated basis respectively.
The Chief Financial Officer of the company stated that company’s performance in wire ropes and in steel during the quarter was better than last year mainly due to better realisation and strong market demand. Barring oil and gas sector, the domestic market is also seeing good traction for wire ropes, particularly from mining and infrastructure.
CFO also went on saying that even though the company saw cost pressure building up during the quarter, as input prices went up, it was able to pass on the price hike due to buoyant demand.