MIRA
INFORM REPORT
|
Report Date : |
26.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
USHA MARTIN
LIMITED (w.e.f. 22.07.2003) |
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Formerly Known
As : |
USHA BELTRON
LIMITED |
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Registered Office : |
2 A, Shakespeare
Sarani, P S Shakespeare Sarani, Mangal Kalash, Kolkata – 700 071, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
22.05.1986 |
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Com. Reg. No.: |
21-91621 |
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Capital Investment / Paid-up Capital : |
Rs.305.420 Millions |
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CIN No.: [Company
Identification No.] |
L31400WB1986PLC091621 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALU01301G |
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Legal Form : |
A Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of
jelly filled telephone cables, wire and wire ropes and steel. |
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No. of Employees : |
8000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 62000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered
Office : |
2 A, Shakespeare
Sarani, P S Shakespeare Sarani, Mangal Kalash, Kolkata – 700 071, West |
|
Tel. No.: |
91-33-22828540 /
41 / 6737 / 8545 / 39800300 / 22825816 |
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Fax No.: |
91-33-22821660 /
1971 / 39800400 |
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E-Mail : |
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Website : |
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Corporate
Office : |
Agarwal Estate, |
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Tel. No.: |
91-22-26160176 / 26528477 |
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Fax No.: |
91-22-26526774 |
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Email: |
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Administrative
Office : |
Usha Alloys and
Steel Division, Post Box 147, |
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Tel No.: |
91-657-2386052 /
2386070 |
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Factory : |
Located at ·
UAS Division - Adityapur, ·
Tatilswai, ·
Hoshiarpur, ·
Construction Steel
Division (North) - Nawalganj, ·
Sri Perumbudur, ·
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Mines : |
Located at ·
·
Coal Mines – Daltonganj –
822 101, |
DIRECTORS
As on 31.03.2011
|
Name |
Mr. B K Jhawar |
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Designation |
Chairman Emeritus |
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Name : |
Mr. Prashant Jhawar |
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Designation : |
Chairman |
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Name |
Mr. Rajeev Jhawar |
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Designation |
Managing Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
B. Com (Hons) |
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Experience : |
26 Years |
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Date of Appointment : |
01.10.1997 |
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Name |
Dr. P Bhattacharya |
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Designation |
Joint Managing Director |
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Date of Birth/Age : |
65 Years |
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Qualification : |
B.E (Mech), M. Tech (Design Engineering) Phd (Solid Mechanics) |
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Experience : |
43 Years |
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Date of Appointment : |
02.02.1998 |
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Name : |
Mr. Brij K Jhawar |
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Designation : |
Director |
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Name : |
Mr. A K Chaudhri |
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Designation : |
Director |
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Name : |
Mr. A K Basu |
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Designation : |
Director |
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Name : |
Mr. S Singhal |
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Designation : |
Director |
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Name : |
Mrs. Ramni Nirula |
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Designation : |
Director |
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Name : |
Mr. G N Bajpai |
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Designation : |
Director |
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Name : |
Mr. Nripendra Misra |
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Designation : |
Director |
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Name |
Mr. Jitender Balakrishnan |
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Designation |
Director |
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Name |
Dr. Vijay Sharma |
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Designation |
Executive Director and Chief
Executive [Steel Business] |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B. Tech, M.Sc, PGD in BA Phd (Metallurgical Engineering) |
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Experience : |
34 Years |
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Date of Appointment : |
06.01.2010 |
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Name : |
Mr. Pravin Kumar Jain |
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Designation : |
Executive Director and Chief Executive [Wire and Wire Ropes Business] |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B. Tech, MBA |
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Experience : |
34 Years |
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Date of Appointment : |
01.09.2009 |
KEY EXECUTIVES
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Name : |
Mr. A K Somani |
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Designation : |
Chief Financial Officer and Company Secretary |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B. |
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Experience : |
32 Years |
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Date of Appointment : |
03.04.1990 |
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Name : |
Mr. Sanjay Nath |
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Designation : |
Senior Vice President [Sales and Marketing] |
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Name : |
Mr. D J Basu |
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Designation : |
Senior Vice President [HR] |
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Name : |
Mr. S K Jala |
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Designation : |
Senior Vice President [IT] |
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Name : |
Mr. Rajesh Sharma |
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Designation : |
Senior Vice President [Wire and Wire Rope Division] |
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Name : |
Mr. Sunil Gupta |
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Designation : |
Senior Vice President [Commercial] |
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Name : |
Mr. Anjan Kumar Dey |
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Designation : |
Senior Vice President [Iron Making] |
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Name : |
Mr. Malay Kumar De |
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Designation : |
Senior Vice President [Metallurgical Services] |
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Name : |
Mr. Arvind Kapoor |
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Designation : |
Vice President [Marketing] |
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Name : |
Mr. S Jodhawat |
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Designation : |
Chief Executive Officer – Usha MartinInternational Limited |
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|
Name : |
Mr. Paul Scutt |
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Designation : |
Managing Director – European Marine and Management |
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Name : |
Mr. Ken Green |
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Designation : |
Director-in-charge – Brunton Shaw |
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Name : |
Mr. Henk Steenbergen |
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Designation : |
General Manager – De Ruiter Staalkabel B.V |
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Name : |
Mr. Amogh Sharma |
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Designation : |
Managing Director – Usha Siam Steel Industries Public Company Limited |
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Name : |
Mr. Tapas Ganguly |
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Designation : |
Chief Executive Officer – Usha Martin Singapore Pte Limited |
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Name : |
Mr. Sunil Sadani |
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Designation : |
Vice President – Usha Martin Americas Inc. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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4,570,971 |
1.52 |
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79,063,708 |
26.35 |
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83,634,679 |
27.88 |
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|
|
|
|
|
33,336,135 |
11.11 |
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|
33,336,135 |
11.11 |
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Total shareholding of Promoter and Promoter Group (A) |
116,970,814 |
38.99 |
|
(B) Public Shareholding |
|
|
|
|
|
|
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|
54,971,365 |
18.32 |
|
|
50,740 |
0.02 |
|
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23,200,186 |
7.73 |
|
|
54,737,550 |
18.25 |
|
|
132,959,841 |
44.32 |
|
|
|
|
|
|
20,404,184 |
6.80 |
|
|
|
|
|
|
23,717,738 |
7.91 |
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|
5,959,833 |
1.99 |
|
|
50,081,755 |
16.69 |
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Total Public shareholding (B) |
183,041,596 |
61.01 |
|
Total (A)+(B) |
300,012,410 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
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|
4,729,370 |
- |
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|
4,729,370 |
- |
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Total (A)+(B)+(C) |
304,741,780 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of jelly
filled telephone cables, wire and wire ropes and steel. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity $ |
Actual
Production |
|
a. Wire Rods |
M.T. |
400,000 |
318,567 |
|
b. Bars |
M.T. |
323,000 |
173,048 |
|
c. Billets |
M.T. |
1,000,000 |
500,140 |
|
d. Pig Iron/Hot Metal |
M.T. |
570,000 |
292,994 |
|
e. Sponge Iron |
M.T. |
300,000 |
237,209 |
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f. Rolled Products |
M.T. |
72,300 |
42,581 |
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g. Wire Ropes, Strands including Locked Coil Wire Ropes |
M.T. |
129,708 |
104,004 |
|
h. Wires |
M.T. |
111,060 |
80,087 |
|
i. Bright Bar |
M.T. |
25,480 |
19,278 |
|
Conveyor Cord |
M.T. |
3,600 |
1,786 |
|
j. Wire Drawing and Allied Machines |
Nos. |
60 |
12 |
|
k. Hydraulic Machines including Presses |
Pcs. |
100 |
60 |
|
n. Blocks, Dies etc. |
Sets |
400 |
19 |
|
Ferrules, Slings, Fitting |
Pcs. |
700,000 |
116,057 |
|
l. Equipment for Prestressed Concrete System |
Pcs. |
6,500,000 |
1,892,326 |
|
m. Jointing Equipment |
Pcs. |
100,000 |
20,637 |
Notes:
·
$ As certified by the Management.
·
a Including internal consumption 192,229 M.T.
·
b Including internal consumption 16,006 M.T.;
excluding trial production Nil M.T
·
c Including internal consumption 503,410 M.T. and
purchase (net) 6,895 M.T.; excluding trial production Nil M.T.
·
d Including internal consumption 312,286 M.T.
excluding trial run production 45,669 M.T.
·
e Including internal consumption 240,123 M.T.;
excluding trial production Nil M.T.
·
f Including internal consumption 99 M.T.
·
g Including internal consumption 3,100 M.T.
·
h including internal consumption 7,447 M.T.
·
i Including internal consumption 2,977 M.T.;
excluding trial production Nil M.T.
·
j Including internal consumption 6 Nos.
·
k Including internal consumption Nil Sets.
·
l Including internal consumption 16,277 Pcs.
·
m Including internal consumption Nil Pcs.
·
n Including internal consumption 2 Sets
GENERAL INFORMATION
|
No. of Employees : |
8000 (Approximately) |
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Bankers : |
·
State Bank of ·
Canara Bank, Kolkata, West · ICICI Bank Limited · Induslnd Bank Limited ·
Allahabad Bank, Kolkata, West ·
The Hongkong and Shanghai Banking Corporation
Limited, Kolkata, West · HDFC Bank Limited · BNP Paribas · American Express Bank Limited ·
The Bank of Tokyo Limited, Kolkata, West · Axis Bank Limited ·
Export Import Bank of |
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Facilities : |
Notes 1.
Term Loans from Financial Institution and Banks
are secured/to be secured by way of Joint Equitable Mortgage by deposit of
title deeds of certain immovable properties and hypothecation over movable
assets of the Company both present and future subject to prior charges of the
Company’s Bankers on specified movable assets for Working Capital
requirements. 2.
Working Capital Loans from Banks are secured by
hypothecation of all current assets of the Company. Further such loans from
Banks are also secured by charge on certain immovable properties, subject to
prior charges in favour of Financial Institution and Banks created/to be
created in respect of any existing/future financial assistance/accommodation
which has been/may be obtained by the Company. |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Price Waterhouse Chartered
Accountants |
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Address : |
Plot No. Y-14,
Block EP, Sector V, Kolkata – 700
091, West |
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Memberships : |
Confederation of
Indian Industry |
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Joint Venture
Company: |
·
Gustav Wolf Speciality Cords Limited (GWSCL) ·
Pengg Usha Martin Wires Private Limited (PUMWPL) ·
CCL Usha Martin Stressing Systems Limited
(CCLUMSSL) ·
Dove Airlines Private Limited (DAPL) |
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Subsidiaries : |
·
Usha Martin International Limited (UMIL) ·
Usha Martin Americas Inc. (UMAI) ·
Usha Martin UK Limited (UMUK) ·
UMICOR ·
Usha Martin Vietnam Company Limited (UMVCL) ·
Usha Martin Australia Pty Limited (UMAUS) ·
European Management and Marine Corporation
Limited (EMMC) ·
EMM Caspian Limited (EMM Caspian) ·
E M M Kazakhstan Limited (EMMK) ( effective upto
16.07.2010 ) ·
Usha Siam Steel Industries Public Company Limited
(USSIL) ·
Brunton Shaw UK Limited (BSUK) ·
Usha Martin ·
Brunton Wolf Wire Ropes FZCO. (BWWR) ·
P. T. Usha Martin ·
·
UM Cables Limited (UMCL) ·
Usha Martin Power and Resources Limited (UMPRL) ·
Bharat Minex Private Limited (BMPL) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity Shares |
Re.1/- each |
Rs.500.000 Millions |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs.50/- each |
Rs.500.000 Millions |
|
|
Total |
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
304741780 |
Equity Shares |
Re.1/- each |
Rs.304.742
Millions |
|
Add |
Share forfeited |
|
Rs.0.678
Million |
|
|
Total |
|
Rs.305.420 Millions |
Note
Out of the above
Paid up Equity Shares –
1.
4,729,370 Equity Shares represent Global Depository
Receipts (GDRs).
2.
57,384,055 Equity Shares allotted in earlier years
as fully paid up pursuant to the Schemes of Amalgamation without payment being
received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
305.420 |
305.420 |
250.920 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15265.132 |
14691.498 |
9911.836 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15570.552 |
14996.918 |
10162.756 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16092.062 |
8401.184 |
14661.503 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
16092.062 |
8401.184 |
14661.503 |
|
|
DEFERRED TAX LIABILITIES |
2148.748 |
1691.017 |
1221.053 |
|
|
|
|
|
|
|
|
TOTAL |
33811.362 |
25089.119 |
26045.312 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
27475.156 |
22491.433 |
11224.348 |
|
|
Capital work-in-progress |
3824.809 |
6083.947 |
12086.352 |
|
|
|
|
|
|
|
|
INVESTMENT |
1869.513 |
1869.513 |
1863.513 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9626.573
|
6721.045
|
4037.100
|
|
|
Sundry Debtors |
2834.779
|
1674.942
|
3228.548
|
|
|
Cash & Bank Balances |
1130.084
|
102.974
|
764.682
|
|
|
Other Current Assets |
371.296
|
338.620
|
239.621
|
|
|
Loans & Advances |
2537.283
|
2505.980
|
2780.155
|
|
Total
Current Assets |
16500.015
|
11343.561
|
11050.106
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2701.510
|
3034.791
|
2346.930
|
|
|
Other Current Liabilities |
12744.349
|
13222.759
|
7465.990
|
|
|
Provisions |
412.272
|
441.785
|
373.392
|
|
Total
Current Liabilities |
15858.131
|
16699.335
|
10186.312
|
|
|
Net Current Assets |
641.884
|
(5355.774)
|
863.794
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
7.305 |
|
|
|
|
|
|
|
|
TOTAL |
33811.362 |
25089.119 |
26045.312 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover (Net) |
25267.020 |
18503.855 |
21272.253 |
|
|
|
Other Income |
272.785 |
201.639 |
135.315 |
|
|
|
TOTAL (A) |
25539.805
|
18705.494 |
21407.568 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of General Merchandise |
37.559 |
59.486 |
35.489 |
|
|
|
Raw Materials Consumed |
10681.517 |
8306.256 |
9336.337 |
|
|
|
Increase/Decrease in Stock in trade and Partly Finished Products |
(1356.533) |
(911.242) |
(208.849) |
|
|
|
Manufacturing, Selling and Administrative Expenses |
11247.331 |
7820.703 |
8150.137 |
|
|
|
Adjustment for item capitalized and departmental orders for own
consumption |
(30.271) |
(164.597) |
(129.843) |
|
|
|
TOTAL (B) |
20579.603 |
15110.606 |
17183.271 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4960.202 |
3594.888 |
4224.297 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
1742.339 |
1130.336 |
1233.483 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3217.863 |
2464.552 |
2990.814 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1764.869 |
1072.517 |
850.402 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1452.994 |
1392.035 |
2140.412 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
457.731 |
469.964 |
674.845 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
995.263 |
922.071 |
1465.567 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
411.209 |
343.588 |
420.792 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
500.000 |
500.000 |
1250.000 |
|
|
|
Proposed Dividend on Equity Shares |
304.742 |
304.742 |
250.242 |
|
|
|
Provision for Dividend Tax |
47.319 |
49.708 |
42.529 |
|
|
BALANCE CARRIED
TO THE B/S |
554.411 |
411.209 |
343.588 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods (On FOB basis) |
3956.134 |
4554.381 |
6346.395 |
|
|
|
Interest Received |
4.991 |
12.590 |
25.826 |
|
|
|
Service Charges |
0.327 |
0.153 |
0.134 |
|
|
|
Dividend |
164.975 |
25.656 |
14.670 |
|
|
|
|
15.462 |
38.573 |
41.259 |
|
|
TOTAL EARNINGS |
4141.889 |
4631.353 |
6428.284 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3936.834 |
2613.732 |
1548.660 |
|
|
|
Components and Spare Parts |
491.777 |
230.349 |
265.644 |
|
|
|
Capital Goods |
486.461 |
686.604 |
1045.545 |
|
|
TOTAL IMPORTS |
4915.072 |
3530.685 |
2859.849 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.27 |
3.53 |
5.86 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
6086.700 |
6866.800 |
|
Total Expenditure |
|
4963.300 |
5662.300 |
|
PBIDT (Excl OI) |
|
1123.400 |
1204.500 |
|
Other Income |
|
6.400 |
27.200 |
|
Operating Profit |
|
1129.800 |
1231.700 |
|
Interest |
|
525.600 |
582.000 |
|
Exceptional Items |
|
0.000 |
(1203.300) |
|
PBDT |
|
604.200 |
(553.600) |
|
Depreciation |
|
489.900 |
479.600 |
|
Profit Before Tax |
|
114.300 |
(1033.200) |
|
Tax |
|
37.900 |
(315.200) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
76.400 |
(718.000) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
76.400 |
(718.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.90
|
4.93 |
6.85
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.75
|
7.52 |
10.06
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.30
|
4.11 |
9.61
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.09 |
0.21
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.09
|
1.67 |
2.44
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04
|
0.68 |
1.08
|
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF OPERATIONS
During 2010-11,
the Company recorded a growth of 36.6% by achieving net turnover of
Rs.25267.000 millions as against Rs.18503.900 millions in previous year. Gross
profit achieved during the year was also higher by 38.0% at Rs.4960.200
millions Against Rs.3594.900 millions in the previous year. The gross sales
before adjustment of inter divisional sales were Rs.34777.000 millions, which
is higher by 36.2% over that in previous year.
The Company
achieved profit before tax of Rs.1453.000 millions and net profit of Rs.995.300
millions as against Rs.1392.100 millions and Rs.922.100 millions in 2009-10,
recording increase of 4.4% and 7.9% respectively.
The collective
turnover of subsidiaries (without inter company/ division sales) was however
lower by 13.2% at Rs.9116.400 millions against that in previous year of
Rs.10505.500 millions in previous year.
At consolidated
level, net turnover (net of excise duty and inter-company/division sales) stood
at Rs.30465.700 millions against Rs.25144.100 millions in 2009-10. Consolidated
gross profit increased by 18.6% to Rs.5873.100 millions. However, profit before
tax and profit after tax decreased by 15.0% and 18.4% to Rs.2040.700 millions
and Rs.1400.300 millions respectively.
PROJECTS
The capex plans
undertaken by the Company for strengthening its’ advantage of cost
competitiveness, are progressing satisfactorily and are expected to be
commissioned in phases over FY 2011-12 and 2012-13. The projects under
implementation include setting up of captive facilities namely pellet plant,
coke oven plant, additional DRI and power plants and balancing facilities in
Steel and Wire and Wire Ropes Divisions.
BUSINESS OUTLOOK
While domestic
economic conditions have restored to an extent from down turn and global
economy is also showing signs of possible recovery, higher input prices and
rising inflation, coupled with volatility in prices of finished goods due to
external competitive pressures, may have impact on profitability in the sector
and segments the Company operates. However with the advantage of reasonably
higher level of integration with mineral resources and range of value added
products, the directors are confident of the Company performing relatively
better in near future.
SUBSIDIARIES
All the operating
subsidiaries of the Company have continued to perform well during the. The
international subsidiaries provide significant synergy and support to the
Company’s business and performance.
Usha Martin
International Limited and Usha Martin
JOINT VENTURES
All the key joint
ventures formed by the Company namely, Pengg Usha Martin Wires Private Limited,
Gustav Wolf Speciality Cords Limited and Dove Airlines Private Limited, have
done reasonably well in the year.
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
The Indian economy
continued to grow impressively in 2010-11, while the western economies and
The hangover of meltdown
particularly in
Crucial raw
materials prices grew at unbridled pace but commodity prices are likely to face
downward correction which may influence global steel scenario during 2011-12.
COMPANY OVERVIEW
Subject is a
Rs.44000.000 millions company with speciality steel and value added steel
products as its core business. It is the largest producer of speciality steel
long products in
The company
follows an integrated model, with captive iron ore and coal mines in Jharkhand
and state-of-art integrated steel plant near
In steel wire rope
manufacturing, the Company is the largest in
The global
business of wire rope is supported by marketing, distribution and rigging
facilities in various locations in
The Company has an
in-house machinery manufacturing facility at
STEEL BUSINESS
Steel business of the
Company spreads from mining of iron ore and coal to manufacturing speciality
steel in the state of Jharkhand and construction steel at Agra in the state of
UP.
Major capex
projects, including a new Blast Furnace and a sinter plant, have been completed
in FY 10-11. This has enabled the plant to reach a production level of 0.5
million ton, a staggering 33% growth in the year. The turnover showed an even
more impressive growth of 48% due to improved product mix and realizations.
Share of steel
business increased to 62.6% of the Company’s gross level of activity and 53.2%
of reported turnover in 2010-11.
Fuelled by growing
infrastructure, consumer durables and auto sectors in a growing economy, the
demand for company’s products remained strong during the year. The same trend
is likely to continue (though slightly moderated by rising interest rates) and
the company plans to garner a higher share in it with increased capacity
utilization and better cost competitiveness.
Projects/Capex Plans
Cost
competitiveness has been the driving force behind the integrated business model
followed by the company. The benefits are all the more visible in current
regime of high commodity prices. Ongoing projects for setting up a pellet plant
for utilization of cheaper iron ore fines, coke oven plant for reducing
dependence on imported coke, additional DRI and Captive Power Plants are to be
seen in this context. These projects, expected to be commissioned in next two
years, will further strengthen company’s cost competitiveness.
Captive mines
provide not only a cost advantage but also a better quality due to control on
inputs and more importantly, consistent production free of uncertainties in
supply of raw materials.
Key Focus Areas and Achievements
The Company
achieved following:
·
Volume sales of 5,18,324 MT of rolled products, at
steel plant at
·
year.
·
Commissioning of second Blast Furnace for captive
consumption making it self-reliant in its metallic requirement for steel
production.
·
Commissioning of Sinter Plant which uses iron ore
fines, replacing sized iron ore as an input in Blast Furnace.
·
Higher utilization of thermal coal from own mine
DRI production insulating the Company from volatile price fluctuations of
purchase coal.
·
Product development and approval from OEMs for bar
products achieving recognition for its quality.
The Company
recognizes importance of two key raw materials i.e iron ore and coal and initiatives
have been taken to enhance mining capacity apart from setting up of pellet
plant for conversion of iron ore fines to pellets, which will also improve
productivity of DRI kilns.
WIRE ROPES AND SPECIALITY PRODUCTS BUSINESS
The company showed
a healthy growth of 14.8% in turnover in FY 10-11, buoyed by demand from
elevators and mining segment. The fastest growing markets for elevators are in
South-East and
With production
centers in
On stand-alone
basis, the wire ropes and speciality products business accounted for 37.4% of
gross activity level and 46.8% of the reported turnover of the Company,
generating a turnover of Rs.12087.300 millions as against Rs.10529.400 millions
in the previous year, higher by 14.8%. The domestic turnover of this business
stood at Rs.9227.600 millions during year as against Rs.7330.000 millions in
the previous year.
Projects/Capex Plans
To keep up with
the pace of rising demand in wire rope market, the company has planned capacity
expansion in LRPC strands used extensively for pre-stressing of concrete
structures, elevator ropes, and fine ropes, bright bar and OT wire.
After receiving
the prestigious Award for Excellence in consistent TPM commitment from Japan
Institute of Plant Maintenance, the Company will now strive for the Deming
Award to achieve even higher quality standards.
Key Initiatives
·
The Company received the prestigious Award of
Excellence in consistent TPM commitment from JIPM. The Division is now aiming
for Deming Award.
·
In its endeavor for excellence and to sharpen
competitive edge, the Company has signed MOU with a premier engineering and
technological institution of
·
Developed extra high strength anchor mooring ropes
having higher breaking load per unit steel content within the rope.
·
Continued strengthening of dealer / distribution
network to further expand Pan-India reach.
·
Plan to develop special PE coated LRPC strands for
structural applications.
·
The company has now built up capability of
producing larger diameter rope and with single length weighing up to 210 Tons.
INTERNATIONAL BUSINESS
The Company enjoys
a wide international presence through manufacturing and distribution
subsidiaries located in different parts of the world. The Company’s
international business accounted for 20.0% of its consolidated gross activity
level. Gross level of activities of overseas subsidiaries has declined 9.82%
from Rs.9103.200 millions in 2009-10 to Rs.8208.500 millions in 2010-11 due to
continued depressed market conditions in most parts of the world.
Usha Martin International Limited [UMIL]
UMIL enjoys a
presence in the
·
Usha Martin UK Limited, which comprises
manufacturing distribution and end use solutions wire ropes to offshore oil and
gas sectors, and
·
De Ruiter Staalkabel B.V. Netherlands, which has distribution
facilities for wire ropes.
The consolidated
turnover of UMIL was GBP 41.0 million in 2010-11 as against GBP 49.4 million in
2009-10. UMIL reported a consolidated net profit of GBP 2.6 million as against
GBP 3.2 million in the previous year.
Usha Martin Americas Inc [UMAI]
During the year,
UMAI reported a turnover and profit after tax of US$ 15.2 million and US$ 1.1
million respectively as against US$ 19.3 million and US$ 1.2 million
respectively in the previous year.
The sale of wire
ropes to US mining companies and distribution business in
Brunton Wolf Wire Rope FZCO [BWWR]
BWWR, a joint
venture with Gustav Wolf of
Project for
building a new shed for building up additional capacity at BWWR has been
completed and capacity for elevator ropes is being enhanced to meet expected
future demand.
Usha Siam Steel Industries Public Company Limited
[USSIL]
USSIL, in which
the Company holds 97.85% of equity (by itself and through Usha Martin Singapore
Pte Limited), achieved a turnover of
Thai Baht 1,628 million during the year as against Thai Baht 1,493 million in
the previous year. It reported a net profit of Thai Baht 86 million as against
Thai Baht 71 million in the previous year.
Capacity for fine
ropes is being increased at USSIL to cater to the high demand in this segment.
Usha Martin Singapore Pte Limited [UMSPL]
UMSPL together
with its wholly owned subsidiaries (Usha Martin Australia Pty Limited, Usha
Martin Vietnam Company Limited and PT Usha
Martin Indonesia), achieved a consolidated turnover of US$ 30.0 million and net
profit of US$ 1.7 million during the year as against US$ 33.0 million and net
profit of US$ 3.6 million respectively
in the previous year.
During the year,
UMSPL has commenced operations in the new state-of-art warehousing facility
equipped with 100 ton cranes for handling large reels for offshore
applications. A new stocking facility has also been opened at
CABLE BUSINESS
U M Cables Limited
(UMCL), a wholly owned Indian subsidiary of the Company, engaged in business of
telecommunication cables achieved turnover of Rs.850.000 millions against
Rs.1341.600 millions in the previous year. The net profit for the year was
lower at Rs.20.000 millions as against Rs.50.900 millions in FY 2009-10. Delay
in off take by BSNL and international markets continuing to remain sluggish
post recession, affected turnover and profitability of UMCL.
THERE ARE CONTINGENT LIABILITIES IN RESPECT OF (As
on 31.03.2011)
·
Bills discounted with Banks Rs.1103.368 millions
including against Letter of Credit Rs.589.536 millions.
·
Bank Guarantees outstanding Rs.295.103 millions
·
Disputed Income Tax matters amounting to Rs.194.022
millions for which the Company has preferred appeal before appropriate
authorities.
·
Demand for Sales Tax amounting to Rs.8.431 millions
for earlier years not acknowledged as debts and in respect of which the Company
has preferred appeals before appropriate authorities.
·
Demand for Excise Duty and Service Tax Rs.443.346
millions not acknowledged as debts and in respect of which the Company has
preferred appeal before appropriate authorities.
·
Demand for Customs Duty Rs.12.439 millions not
acknowledged as debts and in respect of which the Company had preferred appeal
before appropriate authorities.
·
Corporate Guarantees given by the Company to secure
the financial assistance / accommodation extended to other Bodies Corporate
amounting to Rs.685.107 millions
·
Claims against the Company not acknowledged as
debts Rs.3.390 millions.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH
SEPTEMBER, 2011 ON STAND- ALONE BASIS
(Rs. In Millions)
|
Particulars |
Quarter Ended 30.09.2011 |
Half Year Ended 30.09.2011 |
|
1. Gross Sales/ Income from Operations |
7459.700 |
14063.000 |
|
2. Less: Excise Duty |
596.600 |
1115.100 |
|
3. a) Net Sales/ Income from operations
(1-2) |
6863.100 |
12947.900 |
|
b) Other Operating Income |
3.700 |
5.600 |
|
|
|
|
|
4. Expenditures |
|
|
|
a. Increase/ Decrease in Stock in trade and
work in progress |
(618.700) |
(1399.500) |
|
b. Consumption of Raw Material |
3316.000 |
5969.000 |
|
c. Purchase of Traded Goods |
9.300 |
18.400 |
|
d. Power and Fuel |
981.900 |
1853.300 |
|
e. Consumption of Stores and Spare parts |
507.500 |
987.300 |
|
f. Employee Cost |
377.100 |
737.800 |
|
g. Depreciation (including amortization) |
479.600 |
969.500 |
|
h. Other Expenditure |
1089.200 |
2459.300 |
|
i. Total Expenditure |
6141.900 |
11595.100 |
|
5. Profit from operations before other
income, Interest and Exceptional Item (3-4) |
724.900 |
1358.400 |
|
6. Other Income |
27.200 |
33.600 |
|
7. Profit Before Interest and Exceptional
Item (5+6) |
752.100 |
1392.000 |
|
8. Interest (Net) |
582.000 |
1107.600 |
|
9. Profit after Interest but before
Exceptional Item (7-8) |
170.100 |
284.400 |
|
10. Exceptional Items |
(1203.300) |
(1203.300) |
|
11. Profit from ordinary Activities before
tax (9+10) |
(1033.200) |
(918.900) |
|
12. Tax expenses |
(315.200) |
(277.300) |
|
13. Net Profit from ordinary Activities
After Tax (11-12) |
(718.000) |
(641.600) |
|
14. Extraordinary Items |
-- |
-- |
|
15. Net profit for the period (13-14) |
(718.000) |
(641.600) |
|
16. Paid-up Equity Shares Capital (Face
Value of Re.1 each) |
305.400 |
305.400 |
|
17. Reserves excluding Revaluation Reserve
(As per Balance Sheet of the previous accounting year) |
|
|
|
18. Earning per Share (EPS) before and after
Extraordinary Items |
|
|
|
Basic EPS – Rs. |
(2.36) |
(2.11) |
|
Diluted EPS – Rs. |
(2.36) |
(2.11) |
|
19. Public Shareholding |
|
|
|
- Number of Shares |
183041596 |
183041596 |
|
- Percentage of Shareholding |
60.06% |
60.06% |
|
20. Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged/ Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of Shares (as a % of the total Shareholding of promoter
and promoter group |
-- |
-- |
|
- Percentage of shares (as a % of the total share
capital of the company) |
-- |
-- |
|
b) Non- Encumbered |
|
|
|
- Number of Shares |
116970814 |
116970814 |
|
- Percentage of Shares (as a % of the total Shareholding of promoter
and promoter group |
100.00% |
100.00% |
|
- Percentage of shares (as a % of the total
share capital of the company) |
38.38% |
38.38% |
Notes
1.
In view of unexpected and steep decline in the value
of Indian Rupee against US Dollar and other foreign currencies during the
quarter ended 30th September, 2011, the net loss arising out of restatement of
foreign currency monetary items at the close of the quarter amounting to
Rs.1203.300 millions has been considered as exceptional item, which adversely
affected the profitability of the Company for the quarter and the half year.
2.
Tax Expense comprises Current Tax (net of MAT
credit entitlement) and Deferred Tax.
3.
Details of number of investor complaints during the
quarter ended 30th September, 2011 : beginning - Nil, received - 21, attended
to / disposed of - 21 and pending - Nil.
4.
The above results, after review by the Audit
Committee, have been approved and taken on record by the Board of Directors at its
meeting held on 31st October, 2011.
5. The Auditors of
the Company have carried out a 'Limited Review' of the aforesaid financial
results for the period ended 30th September, 2011 in terms of Clause 41 of the
Listing Agreement with Stock Exchanges.
DISCLOSURE OF
ASSETS AND LIABILITIES AS PER CLAUSE 41(I)(EA) OF THE LISTING AGREEMENT FOR THE
HALF YEAR ENDED 30TH SEPTEMBER, 2011.
(Rs. In Millions)
|
Particulars |
|
As at 30.09.2011 (Unaudited) |
|
SOURCES OF FUNDS |
|
|
|
SHAREHOLDERS'
FUNDS : |
|
|
|
(a) Capital |
|
305.400 |
|
(b) Reserves and Surplus |
|
14587.200 |
|
LOAN FUNDS |
|
25890.600 |
|
NET DEFERRED TAX LIABILITY |
|
1871.400 |
|
TOTAL |
|
42654.600 |
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
FIXED ASSETS |
|
33122.900 |
|
INVESTMENTS |
|
1869.500 |
|
CURRENT ASSETS, LOANS AND ADVANCES |
|
|
|
(a) Inventories |
|
11812.400 |
|
(b) Sundry Debtors |
|
3637.000 |
|
(c) Cash and Bank balances |
|
4205.200 |
|
(d) Other current assets |
|
478.000 |
|
(e) Loans and Advances |
|
2982.400 |
|
|
|
23115.000 |
|
|
|
|
|
Less: Current Liabilities and Provisions |
|
|
|
(a) Liabilities |
|
15452.600 |
|
(b) Provisions |
|
0.200 |
|
|
|
15452.800 |
|
NET CURRENT ASSETS |
|
7662.200 |
|
TOTAL |
|
42654.600 |
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED ON STAND- ALONE BASIS
(Rs. In Millions)
|
Particulars |
Quarter Ended 30.09.2011 |
Half Year Ended 30.09.2011 |
|
1. Segment Revenue (Net Sales/ Income from Operations) |
|
|
|
a. Steel |
5245.400 |
10024.800 |
|
b. Wire and Wire Ropes |
3362.400 |
6347.100 |
|
c. Unallocated |
-- |
-- |
|
Total Segment Revenue |
8607.800 |
16371.900 |
|
Less: Inter- Segment Revenue |
1744.700 |
3424.000 |
|
Net Sales/ Income from operations |
6863.100 |
12947.900 |
|
|
|
|
|
2. Segment Results (Profit/ Loss before tax
and interest from each segment) |
|
|
|
a. Steel |
(13.600)* |
399.200* |
|
b. Wire and Wire ropes |
499.700# |
874.300# |
|
c. Unallocated |
-- |
- |
|
Total |
486.100 |
1273.500 |
|
Less: |
|
|
|
a. Interest (Net) |
582.000 |
1107.600 |
|
b. Other un- allocable expenditure (Net of
un-allocable income) |
937.300@ |
1084.800@ |
|
Total Profit/Loss before tax |
(1033.200) |
(918.900) |
|
3. Capital Employed (Segment Assets less
segment liabilities) |
|
|
|
a. Steel |
27165.800 |
27165.800 |
|
b. Wire and Wire Ropes |
10294.300 |
10294.300 |
|
c. Unallocated |
412.000 |
412.000 |
|
Total |
37872.100 |
37872.100 |
* after
considering net unrealised exchange loss of Rs.256.100 millions forming part of
exceptional item as indicated in Note 1 above.
# after
considering net unrealised exchange gain of Rs.36.500 millions forming part of
exceptional item as indicated in Note 1 above.
@ after considering net unrealised exchange loss of Rs.983.700 millions
forming part of exceptional item as indicated in Note 1 above.
FIXED ASSETS
·
Land and Site Development
·
Freehold
·
Leasehold
·
Mining Lease and
Development
·
Buildings
·
Plant and Machinery
·
Railway Sidings
·
Electrical Installation
·
Water Treatment and
Supply Plant
·
Office Equipment
·
Furniture and Fixtures
·
Vehicles
WEB DETAILS
BUSINESS DESCRIPTION
Subject is engaged in specialty steel and value added steel
products business. The Company's business include integrated captive iron ore
and coal mines in Jharkhand and integrated steel plant near Jamshedpur
producing a range of specialty steel wire rod and bar products, from five
millimeters to 160 millimeters diameter. Its steel wire rope manufacturing
plants are located at
BOARD OF DIRECTORS
Mr.
Basant Kumar Jhawar - Chairman Emeritus
Mr. Basant Kumar Jhawar is Chairman Emeritus of subject with effect from
May 10, 2010. He is a Commerce Graduate and founder of Usha Martin Group. He
has founded several industrial enterprises in
Mr.
Prashant Jhawar - Non-Executive Chairman of the Board
Mr. Prashant Jhawar has been appointed as Non-Executive Chairman of the
Board of subject with effect from May 10, 2010. He was Non-Executive Vice
Chairman of the Board of the Company. He is a commerce graduate and has studied
Management Development courses at the
Mr.
Ghyanendra Nath Bajpai - Independent Non-Executive Director
Mr. Ghyanendra Nath Bajpai is Independent Non-Executive Director of
subject. He holds a master’s degree in
Commerce from
Education
M Commerce,
LLB ,
Mr. Jitender Balakrishnan
- Independent Non-Executive Director
Mr. Jitender Balakrishnan is Independent Non-Executive Director of
subject. Mr. Balakrishnan is B.E [Mech] from National Institute of Technology,
Education
BE Mechanical Engineering, National Institute of Technology,
Mr. Aje Kumar
Chaudhri - Independent Non-Executive Director
Mr. Aje Kumar Chaudhri is Independent Non-Executive Director of subject
on September 16, 1995. He obtained his degree in Electrical Engineering with
distinction from
Education
B Electrical Engineering,
Mr. Pravin Kumar
Jain - Chief Executive - Wire and Wire Ropes Business, Executive Director
Mr. Pravin Kumar Jain is Chief Executive - Wire and Wire Ropes Business,
Executive Director of subject. He holds qualification as B. Tech (Mechanical
Engg.) and MBA (General Management and Finance). Mr. Jain commands experience
in operations, project implementation, product marketing, brand building,
setting up dealers and distribution networks apart from in fields of
production, maintenance, quality, cost optimisation etc. during his total work
experience of over 33 years in wire, wire ropes and related areas across
various companies in India and abroad. Mr. Jain is a director in Gustav Wolf
Speciality Cords Limited and UM Cables Limited and holds no other committee
memberships in any other companies. Mr. Jain holds no shares in the Company.
Considering his wide knowledge and experience and services to the Company, Mr.
Jain was appointed as an Executive Director designated as Executive Director
and Chief Executive [Wire and Wire Ropes Business] of the Company with effect
from 1st February, 2010.
Mr. Rajeev Jhawar
- Managing Director, Executive Director
Mr. Rajeev Jhawar is Managing Director and Executive Director of
subject. He is a Commerce Graduate. He has been associated with the Group for
more than a decade and brings with him experience in the administration of
industrial enterprises. Mr. Jhawar also underwent Management Development Course
at
Mr. Nripendra
Misra - Independent Non-Executive Director
Mr. Nripendra Misra is Non-Executive Independent Director of subject.
Mr. Misra, an IAS [Retd.] has held positions as Chairman of Telecom Regulatory
Authority of India, Chairman of CDOT Alcatel Research Centre, Secretary of
Department of Telecom, Government of India, Chairman of Telecom Commission,
Government of India and various other senior level positions in Government of
India and Government of Uttar Pradesh during his work experience of 44 years.
He has also authored various publications and is associated with various bodies
in field of agricultural, community building and social services. Mr. Misra
does not hold any other directorship or committee membership in any other
company. Mr. Misra is holding 200 equity shares in the Company.
Mrs. Ramni Nirula
- Independent Non-Executive Director
Mrs. Ramni Nirula is Independent Non-Executive Director of subject since
January 2010. Mrs. Nirula will hold office upto the date of ensuing Annual
General Meeting. The Company has received required notice from a member of the
Company under Section 257 of the Act proposing candidature of Mrs. Nirula as a
Director of the Company. Mrs. Nirula holds a bachelor’s degree in Economics and
a master’s degree in Business Administration from
Education
M Business Administration,
B Economics,
Dr. Vijay Sharma -
Chief Executive - Steel Business, Executive Director
Dr. Vijay Sharma is Chief Executive - Steel Business, Executive Director
of subject. He is responsible for steel business. He is credited with
implementation, turnaround and operation of steel plants with over total
experience of 34 years including 12 years with Usha Martin Group from 1977 to
1989. He is a Metallurgical Engineer from IIT, Kharagpur (1977) and completed
his MS in Materials Engineering from R P I
Education
PHD ,
MBA , XLRI,
Mr. Salil Singhal
- Independent Non-Executive Director
Mr. Salil Singhal is Independent Non-Executive Director of subject since
May 12, 2009. He is an industrialist. He was the Chairman of Crop Care
Foundation (erstwhile Pesticides Association of India) for 17 years. He was
subsequently elected as Chairman Emeritus for life by the members of the
Foundation. Mr. Singhal was also a member of the Executive Committee of the
Federation of Indian Chamber of Commerce and Industry [FICCI] and the Chairman
of Environment Committee of FICCI for 5 years. He was also the past Chairman of
Confederation of Indian Industry (CII), Northern Region. He is presently the
Chairman of the National Council of SMEs of CII and is a member of National
Council of CII. Mr. Singhal has travelled and addressed conferences and
seminars on Indian agriculture, environment, chemical industry and
agrochemicals. Mr. Singhal is also associated with a number of social, cultural
and educational organizations.
Mr. Pravin Kumar
Jain - Chief Executive - Wire and Wire Ropes Business, Executive Director
Mr. Pravin Kumar Jain is Chief Executive - Wire and Wire Ropes Business,
Executive Director of subject. He holds qualification as B.Tech (Mechanical
Engg.) and MBA (General Management and Finance). Mr. Jain commands experience
in operations, project implementation, product marketing, brand building,
setting up dealers and distribution networks apart from in fields of
production, maintenance, quality, cost optimisation etc. during his total work
experience of over 33 years in wire, wire ropes and related areas across
various companies in India and abroad. Mr. Jain is a director in Gustav Wolf
Speciality Cords Limited and UM Cables Limited and holds no other committee
memberships in any other companies. Mr. Jain holds no shares in the Company.
Considering his wide knowledge and experience and services to the Company, Mr.
Jain was appointed as an Executive Director designated as Executive Director
and Chief Executive [Wire and Wire Ropes Business] of the Company with effect
from 1st February, 2010.
Dr. Vijay Sharma -
Chief Executive - Steel Business, Executive Director
Dr. Vijay Sharma is Chief Executive - Steel Business, Executive Director
of subject. He is responsible for steel business. He is credited with
implementation, turnaround and operation of steel plants with over total experience
of 34 years including 12 years with Usha Martin Group from 1977 to 1989. He is
a Metallurgical Engineer from IIT, Kharagpur (1977) and completed his MS in
Materials Engineering from R P I
Education
PHD ,
MBA , XLRI,
Mr. Rajeev Jhawar
- Managing Director, Executive Director
Mr. Rajeev Jhawar is Managing Director and Executive Director of
subject. He is a Commerce Graduate. He has been associated with the Group for
more than a decade and brings with him experience in the administration of
industrial enterprises. Mr. Jhawar also underwent Management Development Course
at
Mr. A. K. Somani -
Chief Financial Officer, Compliance Officer, Company Secretary
Mr. Somani is Chief Financial Officer, Company Secretary and Compliance
Officer of subject. He has Bachelor of Commerce degree and CA, CS. He has 30
years of experience. His previous employment was with Emami Paper Mills Limited
as Vice President - Commercial.
PRESS RELEASES
USHA MARTIN GETS
RATING AFFIRMATION FROM FITCH FOR LONG-TERM RATING
FITCH AFFIRMS LOW
DEFAULT RISK ON USHA MARTIN
New
Delhi, November 08, 2011 (PTI) -- Ratings agency Fitch today affirmed a low
default risk on steel wire rope manufacturing giant Usha Martin with a stable
outlook on the back of the company's good Ebidta margin and credit position.
"Fitch Ratings has affirmed India-based Usha Martin Limited's national
long-term rating at 'A+(
An
'A' national rating denote expectations of low default risk relative to other
issuers or obligations in the same country.
"The
ratings also draw comfort from the company's low exposure to volatile raw
material (primarily low-ash metallurgical coke) prices and better inventory
management as it owns captive iron ore and coal mines," Fitch said.
During
the 2010-11 financial year, Usha Martin reported a consolidated EBIDTA margin
of 18.8 per cent and Fitch said it was on account of the company's integrated
operations and value-added product profile.
Usha
Marin had reported a revenue of Rs25670.000 millions during the last fiscal, up
36 per cent from the figure of Rs.18500.000 millions in 2009-10.
Usha
Martin is a major manufacturers of wire rods, bright bars, steel wires,
speciality wires, wire ropes, strand, conveyor cord, wire drawing and cable
machinery. PTI PPB RAH MR11081559
OUTCOME OF BOARD
MEETING
India, November 04 -- Usha Martin Education and Solutions Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on November 03, 2011, has decided that considering the present capital market scenario, the Company's fund raising plans by way of Rights Issue to equity shareholders, be deferred until such time as the Board of Directors deem fit.
USHA
MARTIN EDUCATION REPORTS 70% JUMP IN CONSOLIDATED Q2 NET PROFIT
India, November 04 -- Usha Martin Education and Solutions has reported
results for the second quarter ended September 30, 2011.The company's net
profit for the quarter under review surged 45.35% at Rs.25.000 millions as
compared to Rs.17.200 millions for the quarter ended September 30, 2010. Its
total income has increased by 12.01% to Rs.65.300 millions for the quarter from
Rs.58.300 millions for the similar quarter of the previous year. On
consolidated basis, the group has posted a net profit of Rs.25.100 millions for
July-September quarter as compared to Rs.14.800 millions for the same quarter
last year, up 69.59%. The revenue for the quarter grew by 18.23% to Rs.72.000
millions from 60.900 millions for the corresponding quarter of the previous
fiscal. Usha Martin Education and Solutions is engaged in the manufacture of
steel wires, wire ropes and other related products. The group has set new
standards in the manufacture of wire rods, bright bars, steel wires, speciality
wires, wire ropes, strand, conveyor cord, wire drawing and cable machinery.
USHA MARTIN
LIMITED FIRST HALF CONSOLIDATED TURNOVER AT RS.17080.000 Millions
Kolkata, October
31, 2011: Usha Martin Limited, leading producer of Speciality Steel and one of
the largest Wire Rope manufacturer globally announced its result for the second
quarter and half year ended 30th September 2011.
Key Highlights
·
Turnover increased by 11.0% on consolidated basis
and 9.1% on stand alone basis.
·
Consolidated EBITDA margin at 18.4%.
·
Subsidiaries continue to do well.
·
After higher charge on account of depreciation and
interest but before Notional Forex Losses, PBT for H1’12 was Rs.685.800
millions on consolidated basis.
·
Operational performance could have been better, but
for excessive monsoon and rainfall in the mining areas leading to constraints
on supply of captive minerals.
·
The net notional exchange loss of Rs.1200.000
millions, arising due to unusual depreciation in value of INR against US
Dollar, has been considered as exceptional item.
Consolidated –
Financials
|
Particulars |
Q2 FY12 Rs
in Millions |
Growth (%) |
H1 FY12 Rs
in Millions |
Growth (%) |
FY 10-11 Rs
in Millions |
|
Turnover |
8903.700 |
8.6 |
17078.900 |
11.0 |
32684.000 |
|
Net Sales |
8283.900 |
8.5 |
15917.700 |
10.8 |
30465.700 |
|
PBDIT |
1464.600 |
|
2924.900 |
|
5873.100 |
|
PBT |
320.100 |
|
685.800 |
|
2040.700 |
|
Exceptional Items (Forex Loss) |
(1198.800) |
|
(1198.800) |
|
|
|
PAT |
(626.900) |
|
(370.200) |
|
1370.300 |
Standalone -
Financials
|
Particulars |
Q2 FY12 Rs
in Millions |
Growth (%) |
H1 FY12 Rs
in Millions |
Growth (%) |
FY 10-11 Rs
in Millions |
|
Turnover |
7459.700 |
7.3 |
14063.000 |
9.1 |
27422.400 |
|
Net Sales |
6863.100 |
7.3 |
12947.900 |
8.8 |
25267.000 |
|
PBDIT |
1231.700 |
|
2361.500 |
|
4960.200 |
|
PBT |
170.100 |
|
284.400 |
|
1453.000 |
|
Exceptional Items (Forex Loss) |
(1203.300) |
|
(1203.300) |
|
|
|
PAT |
(718.000) |
|
(641.600) |
|
995.300 |
Operational
Highlights
|
|
Q2 – FY12 MT |
H1 – FY12 MT |
|
Production |
|
|
|
Billet |
124,105 |
239,319 |
|
Rolled Products |
120,182 |
230,366 |
|
VA Products |
49,936 |
97,800 |
|
Sales |
|
|
|
Rolled Products |
67,670 |
125,066 |
|
VA Products |
47,604 |
89,328 |
Excessive monsoon
and rain fall
The excessive
monsoon and rainfall in the mining areas during the period of June’11 to
September’11, resulted in constraints on production of captive iron ore and
coal. The rainfall during this period was about 2000 mm as against 500 mm in previous corresponding
period and annual average rainfall of 1200 mm in iron ore mining areas. Whereas
in coal mine areas , it was 1170 mm against 530 mm in this period and
corresponding period in previous year respectively. As a result, the Company
could achieve production of iron ore of 2.66 L MT and Coal of 0.24 L MT during
the second quarter.
Operations
The Company could
increase turnover to Rs.17078.900 millions by 11.0% in H-1 of FY 11-12 as
against Rs.15387.100 millions during the corresponding period last year on
consolidated basis. The turnover on standalone basis was higher by 9.1 % to
Rs.14063.000 millions in H-1 as against Rs.12893.300 millions during the
corresponding period last year.
However the
company achieved PBT of Rs.685.800 millions on consolidated basis and
Rs.284.400 millions on standalone basis during the first half of the financial
year, before exceptional items.
The bought out
metallic to make up for lower availability of captive minerals and higher cost
of coking coal pushed up the cost of production which could not be passed on in
full due to slow down in economy and auto sector in particular. But for these
reasons, the company’s profitability could have been better.
Forex Loss
During the month of
September, 2011, due to unusual depreciation in the value of INR against USD,
there was an
exchange loss of
Rs.1200.000 millions on account of net notional loss arising out of restatement
of outstanding foreign currency loans and acceptances. This loss has been
considered as an exceptional item and the Company expects this loss to reverse
in subsequent quarters.
Floods in
In the recent
torrential rains and floods in
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.17 |
|
|
1 |
Rs.80.64 |
|
Euro |
1 |
Rs.69.43 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.