Shares of Usha Martin hit a 14-year high of 134.40 rupees, up 8 per cent on the Bahrain Stock Exchange in Wednesday’s trading through Wednesday, leading to a month-long rally. Wire rope manufacturing stocks rose 54 percent last month, compared to a 4 percent increase in the S&P BSE Sensex Index. The stock traded at its highest level since January 2008, when it reached a record high of Rs 154.
According to a disclosure made by Usha Martin, the company’s promoter Peterhouse Investments has sold 1.6 million shares, or 0.52 percent of the company’s stock, so far in March via open market deals.
After the deal, Peterhouse Investments’ stake in the company fell to 2.16% from 2.68%. The Promoters Group Company owned 6.54 percent of Osha Martin’s shares at the end of the December quarter, 2021. The names of the buyers were not immediately confirmed. Click here for details
Meanwhile, during the first nine months ended (April-December) of FY 2021-22 (FY22 9 months), Usha Martin reported a robust 119% YoY growth in its consolidated net profit of Rs 182.70 crore. . . It recorded a net profit of Rs.83.6 crore in 9 months of FY21. Revenue from operations grew by 33% YoY to Rs.1,921 crore from Rs.1,444 crore. EBITDA margins improved 212 basis points at 15.9 percent from 13.8 percent during the same period last year.
Usha Martin said in the annual report for the fiscal year 21, that the global demand for oil and offshore market witnessed improvement during the year under review which in turn boosted the demand for the company’s specialized rope products that meet the needs of the aforementioned sector. It is expected that the demand from the mentioned sector will continue in the next fiscal year and is expected to provide job opportunities for the company. Moreover, with the steady spending on infrastructure by the government, specialized products used in the construction and infrastructure sector may be growth drivers for the company.”
UM Cables is a wholly owned Indian subsidiary of the company, working in the telecommunication cable business. Its factory is located in Silvassa, India.