Usha Martin : Book Closure

Usha Martin Limited

Annual Report 2021-22

A new growth paradigm Resilient. Profitable. Sustainable.

Index

About Usha Martin 1 | Directors' Report 14 | Management Discussion and Analysis 20 | Business Responsibility & Sustainability Report 24 | Report on Corporate Governance 51 | Secretarial Audit Report 70 | Auditors' Report (Standalone) 78 | Standalone Accounts 90| Auditors' Report (Consolidated) 162 | Consolidated Accounts 172 | AGM Notice 251

Key highlights of

FY 2021-22

Revenue (Rs. in Crore)

1810.05

Standalone

2688.07

Consolidated

EBITDA (Rs. in Crore)

316.00

Standalone

450.09

Consolidated

PAT (Rs. in Crore)

211.31

Standalone

291.43

Consolidated

Corporate Overview	Statutory Reports	Financial Statements

From the Managing Director's Desk

Building pathways to sustainable growth

Dear shareholders,

We have had a pivotal year at Usha Martin, as we moved into a phase of growth after significantly deleveraging our balance sheet over the past three years. We are now poised for expansion - enhancing our product mix, focusing on building share in international markets and investing in capacity increase.

The second and third waves of the pandemic during the year under review continued to pose a serious challenge to our daily lives. As a responsible organization, Usha Martin continued to prioritize the health and safety of its employees and their families, other stakeholders and the community at large.

COVID-19 created significant supply chain disruptions resulting in high cost of logistics. Prices of many of our key raw materials were also at record highs. 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 high- value products, and also by increasing our penetration in newer geographies like Australia and South Africa.

Therefore, despite all the challenges, on consolidated basis, our revenue increased from Rs.2097.28 Crore to Rs.2688.07 Crore, an increase of 28.17% over the previous year. Our EBITDA and PAT stood at Rs. 450.09 Crore and Rs.291.43 Crore during the year under review, compared to Rs.312.56 Crore and Rs.151.50 Crore, respectively, for the previous year. Our focus on increasing exports by increasing market penetration

in newer geographies bore dividends, as our revenue from exports on consolidated basis grew from Rs.1034.26 Crore in the previous year, to Rs.1366.24 Crore during the year under review, an increase of 32.10%.

Our strategic move of selling off our steel business to Tata Steel had enabled us to significantly deleverage our Balance Sheet and focus on our core competencies. This has already started yielding results and has placed us in a position of strength.

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.

More importantly, we will continue to focus on our biggest asset: our people. We will continue to recognise and groom

in-house talent and create a leadership pool that would eventually benefit the organisation in the long run. We will also continue to focus in the areas of health and sanitation, conservation of natural resources, education and sustainable livelihoods to ensure we are able to bring about change for the society at large.

We believe that we are at an inflection point. Having been able to stabilise our business, we are truly on our way to strengthen our operations and push the boundaries. We would like to thank every stakeholder associated with the Company for their unwavering support. We, as a company, are ready for this new growth paradigm.

Warm Regards

Rajeev Jhawar

Managing Director

USHA MARTIN LIMITED

Corporate snapshot

Welcome to our world

Over the last 60 years, we have been able to establish ourselves as one of the world's leading manufacturers of wire rope. Our multi-units and diversified portfolio of products, coupled with our superior quality products and services have enabled us to emerge as a globally trusted brand.

MANUFACTURING CAPABILITIES

Our manufacturing units situated at Ranchi, Hoshiarpur, Silvassa, Dubai, Bangkok and the United Kingdom produce wide range of wire ropes.

RESEARCH AND DEVELOPMENT FOCUS

We have two comprehensive R&D centres: one in Concesio, Italy and the other in Ranchi, Jharkhand, India. We are backed by an excellent team of R&D professionals, who are continuously engaged in new product innovation and improvement of our existing products and processes. We are actively engaged in designing wire ropes through our internally developed software and process optimization, ensuring our products at par with global benchmarks.

MARKET PRESENCE

We have been able to establish ourselves as a global player and currently have presence in more than 50 countries. We possess strong capabilities worldwide, which enables us to cater to the needs of our international customers. Our focus on exports is validated by the fact that our international sales account for ~51% of our revenues.

CUSTOMER-FIRST

We have always believed that the success of our Company has been built around our ability to serve customers. The phrase 'Globally Local' is what we live by. In order to ensure continuous supply of our products and services, we have set up worldwide network of 34 distribution centres.

VISION

"TO BE THE GLOBAL

LEADER OF THE WIRE

ROPE INDUSTRY BY DELIVERING CUSTOMER DELIGHT, ADOPTING MODERN TECHNOLOGY AND ENSURING SUSTAINABLE, INCLUSIVE GROWTH FOR ALL OF ITS STAKEHOLDERS."

2 Resilient. Profitable. Sustainable