Rajeev Jhawar Reappointed As Managing Director Of Usha Martin For The Subsequent 5 Years

In the latest Intimation of change in the composition of Board in terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Rajeev Jhawar who have been the Managing Director of Usha Martin till date have been reappointed for the next 5 years. Rajeev Jhawar is an industrialist from India with more than 30 years of strategic management expertise. He began his career as a Senior Vice President (Commercial), and in 1998 he was appointed managing director of Usha Martin Limited.

Managing Director at Usha Martin-Rajeev Jhawar

He attended Ranchi University and London Business School for graduation. He has led the Usha Martin Group for three decades and during that time has accelerated growth, established a meritocracy, and increased stakeholder value. His abilities as a leader, keen business sense, in-depth knowledge of business administration, and strategic decision-making have propelled the Group onto a significantly higher growth trajectory.

Rajeev Jhawar Usha Martin‘s MD. He has supported the business through its good and bad times and helped it get back on the path to success. The success of Usha Martin Limited is attributable to Rajeev Jhawar’s tenacity and dedication to the business. The company’s future seems bright under Rajeev Jhawar’s leadership as a global leader in the wire rope sector, and it is set up for a significant rise from here.

The re-appointment of Mr. Rajeev Jhawar [DIN: 00086164] as Managing Director is for a term of five years effective from 19th May 2023 and is subject to requisite approvals under applicable laws. The intimation was made by Usha Martin Limited based on the recommendation of Nomination and Remuneration Committee, the Board of Directors of the Company at their meeting held on Thursday, 27th April 2023.

Result Of Rajeev Jhawar’s Profit Generations Tactics: Usha Martin’s ROCE Looks Impressive

Rajeev Jhawar impressed with Usha Martin’s return trends

Usha Martin Limited is one of the world’s leading manufacturers of wire rope. Usha Martin Group is a continuously evolving organization and global leader in finding innovative solutions for industry-wide problems. The latest information on returns generated by Usha Martin suggests that the profit generation tactics employed by Rajeev Jhawar, Managing Director of Usha Martin Ltd., has started to yield results. Rajeev Jhawar is an industrialist with over three decades of experience in strategic management.

In a perfect world, we’d like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So, Usha Martin and its trend of ROCE following the techniques used by Rajeev Jhawar is impressive.

What the trend of ROCE can tell us on Usha Martin’s performance and Rajeev Jhawar’s tactics

ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Usha Martin has a ROCE of 19%. On its own, that’s a standard return, however it’s much better than the 15% generated by the Metals and Mining industry. Usha Martin has not disappointed Rajeev Jhawar, in regards to ROCE growth. The data shows that returns on capital have increased by 569% over the trailing five years.

The company is now earning ₹0.2 per dollar of capital employed. Speaking of capital employed, the company is actually utilizing 44% less than it was five years ago, which can be indicative of a business that’s improving its efficiency. This is the result of the dedication and the strategic tactics used by Rajeev Jhawar Usha Martin to take the company to the next greater heights.

On a related note, the company’s ratio of current liabilities to total assets has decreased to 26%, which basically reduces it’s funding from the likes of short-term creditors or suppliers. So, Rajeev Jhawar would be pleased to inform the shareholders that the growth in returns has mostly come from underlying business performance.

In a nutshell, we’re pleased to see that Usha Martin has been able to generate higher returns from less capital. And with the stock having performed exceptionally well over the last five years under the leadership of Rajeev Jhawar, these patterns are being accounted for by investors.

Inox Leisure Ltd leads gainers in ‘A’ group

Gujarat Alkalies & Chemicals Ltd, Lemon Tree Hotels Ltd, Usha Martin Ltd and Cerebra Integrated Technologies Ltd are among the other gainers in the BSE’s ‘A’ group today, 28 March 2022.

Gujarat Alkalies & Chemicals Ltd, Lemon Tree Hotels Ltd, Usha Martin Ltd and Cerebra Integrated Technologies Ltd are among the other gainers in the BSE’s ‘A’ group today, 28 March 2022.

Inox Leisure Ltd spiked 13.02% to Rs 530.85 at 11:51 IST. The stock was the biggest gainer in the BSE’s ‘A’ group. On the BSE, 4.86 lakh shares were traded on the counter so far as against the average daily volumes of 74975 shares in the past one month.

Gujarat Alkalies & Chemicals Ltd soared 11.40% to Rs 901.65. The stock was the second biggest gainer in ‘A’ group. On the BSE, 1.7 lakh shares were traded on the counter so far as against the average daily volumes of 44289 shares in the past one month.

Lemon Tree Hotels Ltd surged 11.32% to Rs 66.85. The stock was the third biggest gainer in ‘A’ group. On the BSE, 29.7 lakh shares were traded on the counter so far as against the average daily volumes of 17.54 lakh shares in the past one month.

Usha Martin Ltd rose 8.77% to Rs 121.6. The stock was the fourth biggest gainer in ‘A’ group. On the BSE, 1.82 lakh shares were traded on the counter so far as against the average daily volumes of 1.26 lakh shares in the past one month.

Cerebra Integrated Technologies Ltd spurt 7.95% to Rs 78.75. The stock was the fifth biggest gainer in ‘A’ group. On the BSE, 1.21 lakh shares were traded on the counter so far as against the average daily volumes of 47541 shares in the past one month.

Usha Martin zooms 54% in 4 weeks; stock trades at over 14-year high

The stock traded at its highest level since January 2008; the stock had hit a record high of Rs 154 on January 4, 2008.

Shares of Usha Martin hit an over 14-year high of Rs 134.40, on soaring 8 per cent on the BSE in Wednesday’s intra-day trade extending it’s a month long rally. The stock of the wire rope manufacture has zoomed 54 per cent in the past one month as compared to a 4 per cent rise on the S&P BSE Sensex. The stock traded at its highest level since January 2008, when it hit a record high of Rs 154.

According to disclosure made by Usha Martin, the company’s promoter Peterhouse Investments sold 1.6 million equity shares or 0.52 per cent stake in the company thus far in March via open market deals.

Post transaction, Peterhouse Investments stake in the company decreased to 2.16 per cent from 2.68 per cent. The promoter group company held 6.54 per cent stake in Usha Martin at the end of December 2021 quarter. The names of the buyers were not ascertained immediately Meanwhile, for the first nine months ended (April to December) of financial year 2021–22 (9MFY22), Usha Martin had reported a strong 119 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 182.70 crore. 

It posted net profit of Rs 83.6 crore in 9MFY21. Revenue from operations grew 33 per cent YoY to Rs 1,921 crore from Rs 1,444 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margins improved 212 bps at 15.9 per cent from 13.8 per cent during the same period last year.

In FY21 annual report, Usha Martin said, the global demand for the oil and offshore market saw improvement during the year under review which in turn boosted the demand for speciality rope products of the company catering to the said sector. “It is expected that the demand from the said sector shall sustain in the next fiscal and is expected to provide business opportunities to the Company. 

Further with steady infrastructure spending by the government, speciality products used in construction and infrastructural sector may be growth drivers for the company.”