Ladies, and gentlemen, good day and welcome to the Usha Martin Limited Earnings Conference Call. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Poojari of CDR India. Please go ahead.
Thank you. Good afternoon, everyone, and thank you for joining us on Usha Martin's Q4 and FY 2025 Earnings Conference Call. We have with us Mr. Rajeev Jhawar, Managing Director of the company, Mr. Abhijit Paul, Chief Financial Officer, and Ms. Shreya Jhawar from the Strategy and Growth team of the company. We trust you have reviewed the earnings document shared earlier. To begin, we will initiate the call to opening notes from the management, following which we have room open for a question-and-answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Mr. Rajeev Jhawar to make his opening remarks.
Good afternoon, everyone. On behalf of the management team of Usha Martin, I would like to welcome you all to our earnings conference call. I will begin by sharing some updates on operations and strategies, following which our CFO, Mr. Abhijit Paul, will run you through the key financial highlights. We are pleased to share that FY 2025 ended on a steady note, with revenue reaching INR 3,474 crore, a growth of 7.7% year-on-year, driven by a 9.5% increase in volumes across our core segments. The wire rope division performed well, recording a 9.3% year-on-year revenue growth, while the wire segment registered a robust 19.7% increase over the same period. Within the wire rope segment, the value-added products accounted for 71% of revenue in FY 2025, with encouraging contributions from the oil and offshore and the elevator sectors. International markets contributed 55% to total revenues during the year.
In Q4 FY 2025, EBITDA margins were at 15.6%, primarily due to a higher share of LRPC sales during the quarter. As part of our measures to optimize the business model in our international locations, we have taken a provision of one-time redundancy cost of INR 4 crores during the quarter. Excluding this one-time cost, the EBITDA margin stands at 16%. Looking ahead, we remain focused on cost control, operating discipline, and enhancing the share of value-added offerings to support margin expansion. As shared previously, One Usha Martin is our company-wide transformation program aimed at operating as a unified enterprise, moving away from regional silos. This strategic shift is yielding gains in cost optimization. It will also help us become more competitive and strengthen our position to gain further market share. The initiative is now firmly embedded in our culture and way of working.
I would like to share a few key developments under the One Usha Martin approach. Number one, as a part of this initiative, the restructuring at our Brunton Shaw U.K. business is progressing very well. Under the new model, Brunton Shaw will operate as a specialized hub focused exclusively on manufacturing critical large-diameter ropes for the oil and offshore sectors. For other key value-added sectors, such as fishing, elevator, crane, and mining, we have commenced direct exports from India to the European customers, enabling improved service levels and enhanced cost efficiency. The full transition is on track and set to be completed by September of 2025. This integration of Ranchi and Brunton Shaw has also played a significant role in reducing inventory requirements at BSUK, thereby contributing to better working capital management.
In parallel, we are implementing best practices in procurement, logistics, and back-end operations across regions, with a focus on driving leaner and more efficient administrative structures. We anticipate that benefits of these enhancements will start delivering measurable value from the second half of the year, FY 2026. We are also making significant progress in our digitalization efforts. During the year, the implementation of SAP S/4HANA was successfully completed for our operations in Singapore, Australia, Vietnam, Indonesia, the U.S. , and Thailand, with the upgrade of our European entities currently in progress. Moving everyone on a single unified digital platform is a key enabler of the One Usha Martin vision, facilitating stronger process controls and ensuring the successful integration of our back-office operations. With these initiatives underway, we are starting to see early results across key metrics and we expect further improvements as the programs mature.
We have begun to see improvement in working capital efficiency because of this integrated approach. Working capital days improved from 209 in September of 2024 to 199 days in March 2025, reversing the earlier trend. Additionally, we generated 141 crores of operating cash flows from international operations in H2 of FY 2025, helping strengthen our balance sheet. As a result, even after undertaking INR 245 crores of CAPEX during the year, we brought down the consolidated net debt to INR 63 crores, while our standalone India operations turned into net cash positive. With these improvements in place, we are confident of sustaining this trajectory and maintaining tighter control over working capital in the quarters ahead. Looking forward, our strategic focus for the upcoming year will center around the following priorities: Number one, continue to pursue value-led volume growth through completing the capacity expansion at our Ranchi plant.
We expect volume ramp-ups in the value-added wire rope segment to support our margin expansion in the quarters ahead. Number two, focus on value-added services for customers through our dedicated rigging shops in Europe, the Middle East, and Southeast Asia, thereby also improving customer stickiness and margins. Number three, in the domestic market, the continued growth in infrastructure activity, port expansion, and advancement of Tier 2 and Tier 3 cities is expected to drive demand for our products, particularly in segments such as elevator and crane ropes. We are working closely with our channel partners' network to grow our market share in India. Number four, we will continue to focus on our GalStar product line, which offers aluminum-zinc-coated wires for rockfall barrier protection. This initiative is part of our broader strategy to pursue high-value products even within the wire segment, both in the domestic and the international markets.
Our commercial production of Ocean Fibre has begun, making our entry into the synthetic sling space for offshore lifting. Though at a nascent stage at the moment, the venture reflects our long-term commitment to product innovation and global relevance. To conclude, we remain committed to long-term value creation through consistent investments in value-added segments, product diversification, and operational resilience. While there are uncertainties globally and ongoing geopolitical tensions, our disciplined approach to execution and financial prudence will continue to support sustained performance in the quarters ahead. With this, I would now like to invite our CFO, Mr. Abhijit Paul, to present to you the financial highlights for the quarter ended 31st March 2025. Thank you, and over to you, Abhijit.
Thank you, and a very good afternoon to everyone. I will now provide a brief overview of the company's operating and financial performance for the quarter and year-end date 31st March 2025. In Q4 of FY 2025, our consolidated net revenue from operations stood at INR 896 crore, reflecting a year-on-year growth of 8% over INR 829 crore in Q4 of FY24. This revenue growth was led by strong performance of our wire and strand segment, which grew by 36.5% year-on-year, and LRPC segment, which saw an 18% year-on-year increase. The core wire rope segment remained at the same level on a YOY basis and is expected to gain momentum in FY 2026, supported by a recovery in demand and the ongoing One Usha Martin initiative. These efforts are aimed at enhancing our competitiveness in international markets, which in turn will drive growth and margin improvement.
Operating EBITDA for the quarter stood at INR 140 crore, compared to INR 152 crore in the corresponding period last year. Excluding one-time redundancy provision, EBITDA margin stood at 16% for Q4 of FY 2025. That said, as highlighted earlier, our focus on driving operational efficiencies remains firm, and we expect this to support margin recovery going forward. Net profit for the quarter stood at INR 101 crore, compared to INR 106 crore in Q4 FY 2024. On a full-year basis, FY 2025 consolidated net revenue increased by 7.7% year-on-year to INR 3,474 crore, compared to INR 3,225 crore in FY 2024. The wire rope segment remained our key contributor, accounting for 72% of total revenue. Operating EBITDA for the year was INR 597 crore, largely stable compared to INR 599 crore in FY 2024. Profit before tax stood at INR 527 crore, as against INR 550 crore in FY 2024. PBT was impacted by higher depreciation cost resulting from capitalization of assets worth INR 303 crore.
On the balance sheet front, I am pleased to report a notable improvement in our financial position. As of 31st March 2025, our consolidated net debt reduced to INR 63 crore, down significantly from INR 124 crore a year ago. Correspondingly, our net debt-to-equity ratio improved to 0.02 times, down from 0.05 times as of March 2024. Our prudent capital allocation ensures that ongoing and planned growth investments remain comfortably funded. From a cash flow standpoint, we delivered a solid improvement. Cash flow from operations before tax in FY 2025 stood at INR 541 crore, representing 91% of operating EBITDA compared to INR 200 crore, which was 63% of the operating EBITDA in H1 of FY 2025. These robust cash flows, coupled with adequate working capital headroom, provide a strong foundation for future investments and capital deployment. In closing, I would like to reiterate our confidence in One Usha Martin's long-term growth trajectory.
We expect continued momentum across both volume-led and value-led drivers, supported by strategic initiatives such as One Usha Martin transformation and ongoing investments in digitalization and customer engagement. We remain committed to delivering sustained performance improvements and long-term value creation for all stakeholders. This brings me to the end of my address. I will now request the moderator to open the line for question and answer session.
Thank you. Ladies, and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies, and gentlemen, we will wait for a moment while the question queue assembles.
The first question comes from the line of Aman Sonthalia from AK Securities. Please go ahead.
Good afternoon, sir. Sir, I have a few questions regarding the performance and future direction of the company. Sir, what is the reason behind the dip in the margin and when we can expect margin improvement?
Hi, sir. Thank you for your question. So, as we mentioned in our opening remarks, there was a one-time redundancy cost of INR 4 crore this quarter, which did impact our margin percentage. Secondly, the margin percentage was also impacted during this quarter because of the LRPC mix. So, the volumes of LRPC in this particular quarter were about 15K compared to Q3, where it was about 13K metric tons. So, this LRPC mix, if we think about how this accounted for the overall margin percentage, it would be approximately a 1% margin reduction on account of this mix. And thirdly, another reason is also the higher cost in the European entities, which we had mentioned in the last call as well, which continue to impact our margin. And for that, we have taken certain initiatives, especially in our BSUK facility.
Based on these restructuring initiatives of the BSUK business, which we are implementing, we do expect further margin improvement, especially starting Q2 of this next financial year.
Okay. Next question is, for the last few years, I think our volume in wire rope is almost stagnant. So, from when we can see noticeable volume growth in wire rope segment?
As I had mentioned in the opening remarks, our volume grew by about 10% year-on-year as far as the wire rope is concerned. The new CapEx is already in place, and we have the capability of increasing our volumes. And as the markets keep on improving, as we are targeting newer markets in Saudi Arabia, and also in different sectors, even further consolidating our markets in India, we are now geared up to increase our volumes. And I expect quarter- on- quarter, we should be able to see growth in our volumes as we move forward.
Okay, sir. And sir, what is the latest update on Galfan Wireline plasticated LRPC and the business in Saudi Arabia?
The GalStar line is now starting to produce, and we have got trial orders as well as some commercial orders from our customers. I'm happy to say that the samples produced have been accepted well in terms of the quality. And we are now expecting the ramp-up of volumes to take place. And we expect that we should be gradually ramping up the volumes in the next two quarters to be able to come close to 400-450 tons a month. And then by end of this year, to come to almost 80%-85% of our capacity. On the plasticated LRPC, our plant is capable of producing 500 tons a month as of now. We are doing close to 200-250 tons a month. This largely depends on the various projects which we have quoted for.
Depending on the demand from these projects and as the schedules come, we should be able to ramp up. We would say that in the next three to four quarters, based on the projected demand and the projects under the pipeline, we feel that there is an opportunity that towards the end of the year, we see the volume uptake come closer to our capacity.
Okay, and sir, how is the European and U.S. market?
The European market is fairly stable, I would say, with demand from oil and offshore continues to be strong, with good inquiries. I think the order book should get better in the coming months. Even the elevator business is stable. As far as the U.S. market is concerned, the markets are a little confused at the moment with the various tariff issues which are happening on a day-to-day basis. But based on our team, we expect that the business should ultimately be stable as the U.S. does not have the manufacturing capability of the additional volumes. And with a fairly good product mix and customer base established already there, we should expect the business to be as usual and hopefully better as things stabilize.
And sir, one last question, sir. There may be chance of peace between Ukraine and Russia in the near future. This could present a significant opportunity for our product in Ukraine. So how prepared are we to capitalize on this potential if it happens?
First of all, if it happens, that would be very good for the overall geopolitical situation. I think this would lead to a big reconstruction of the war, whatever happened during the destruction in the war. So a lot of reconstruction activity will happen, thereby increasing the demand for crane ropes as well as elevator ropes, particularly in these two areas. And I feel that that could result into a big opportunity coming up. But that always depends if and when it happens. And the company, with its expansion, has enough capacity to be able to take care of these demands if and when they come.
Okay, sir. Thanks a lot.
Thank you. The next question comes from the line of Rajesh Majumdar from B & K Securities. Please go ahead.
Hi, good afternoon, everybody. So I said I had a question that our wire rope quarterly volumes were about 28 KT in 2Q FY 2025, and from there it has fallen to 25 KT. Can we attribute this entirely to the European business and the fact that there is some short-term restructuring going on, or is there some slackening in the demand as well?
Thanks for your question. See, in the European market, while the demand is healthy, there have been certain margin pressures which have impacted the performance, and there are some competitive pressures that we see in the market. So part of it would be attributed to the European market, as you mentioned. But overall, globally as well, in Q4, there was a slight slowdown on account of the uncertainties around policies and tariffs. And that's why the rope performance was largely flat compared to Q4 of the previous year. At the same time, in terms of the domestic market as well as market in the Middle East, certain project execution was slightly slower than anticipated. But we see some early signs, and we think it should pick up in the upcoming year.
And as we mentioned before, our focus will be now to optimize our costs in order to tackle some of these pressures that we're seeing in the European market as well as globally, and at the same time, focus on the value-added rope products as well as our rigging business in Europe, Middle East, Southeast Asia in order to grow our rope volumes as well as our margins.
Okay. And secondly, on your outlook for margins, we've seen 16% around for the two consecutive quarters. And you said 2Q FY 2026, so you have a long-term guidance of 18%-20%. So will we see that in 2Q or even later than 2Q, that kind of a margin profile coming back in the company? Yeah, that was my last question.
Yeah, so quarter and on quarter, obviously, depending on the mix, the margin can change. But I would say that over the next year, we expect an overall margin of 18% at minimum is what we are targeting, with stronger progress towards the second half as some of our One Usha Martin initiatives are in full swing. So that's on an overall year basis. We still maintain a minimum of 18% is our target.
Okay. Thank you.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one . The next question comes from the line of Krupanshu from Thinqwise Wealth Managers. Please go ahead.
Yeah, hi. Thank you for the opportunity. So just on the wire rope volumes, so earlier we had some visibility from Saudi Arabia market, new growth of we were targeting 4,000 metric tons, right, in a year. So like that, even elevator rope, we were targeting around 12,000 tons. So how does our visibility now that we went to FY 2026 and other new opportunities from the U.K.-India Free Trade Agreement? Just on the volume side, if you can give me some visibility. That's my first question.
Thank you for your question. So on the elevator volumes, I think we are on target, and we expect strong demand both from the international markets where we are operating as well as in the domestic market with the growth in the tier two, tier three cities. We expect the demand to be fairly strong, and we are on target to achieve the numbers what we had projected. In terms of the Saudi market, we have started doing between 150 to 200 tons a month, which is on an annual rate of close to 2,500 tons. And we expect that gradually because we have just started a few months now with initial supplies made, some repeat orders coming. We are fairly optimistic to achieve these numbers, maybe a quarter here or there.
But ultimately, the demand traction is fairly strong, and we expect to be around the 4,000 tons by the time the exit rate of 4,000 tons we should be able to achieve.
On the U.K.-India Agreement, does it open any opportunities for us?
The U.K.-India, I don't think our demand between India and our demand between India and U.K. through our BSUK continues to be stable. And we expect that these volumes should be continuing. I don't see a big increase because our new model which we have built up, where we now supply directly from India to the European companies instead of through BSUK plant. So there may not be direct supplies to BSUK, but overall, our volumes in the European market on the BSUK brand should be fairly stable to getting better.
Understood. And on the gross margin, so this quarter we've obviously seen a significant compression. Can we attribute it entirely to the product mix change? And if supposing our wire rope mix improves, then is a 50% kind of a margin reasonable?
As Shreya just mentioned, that's partly because of the one-time gain because of the education mix of almost 4%, and that 1% difference of the mix being more.
I'm sorry to interrupt you. Your audio is not coming in clear.
Hello? There is some disturbance in the line. You can get an echo change.
Yes, sir. Ladies, and gentlemen, I will request you to stay connected while I reconnect the management. Thank you.
I think it's on account of.
Ladies and gentlemen, we have the management reconnected. Krupanshu, you can please continue. Thank you.
Yeah, my question on gross margins.
Yeah. So I would like to state that it was primarily due to the mix of LRPC which impacted the gross margins. If we look at our usual mix from the last couple of quarters, it would be at similar levels.
Understood. Thanks. And my last question would be, our wire and strands volume growth has been very encouraging. So where is this growth coming from exactly? If you can give us the type of orders also, please. Thanks.
Sector, mainly from the auto segment and some of the specialized spring requirements. That is both which we supply to the domestic market as well as the customers are exporting it. It's mainly coming from the auto and the specialized spring segment. As far as the strands is concerned, it is the LRPC which is because of the demand from the construction sector, and the plasticated LRPC would be going into these big, big, big bridge construction. These would be the sectors where we expect the growth coming from.
Okay. Thank you.
Thank you. The next question comes from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead.
Yeah. Hi team. Thank you for giving me the opportunity. The first question is slightly on the margin pressure that you alluded to, not just in this quarter but a couple of quarters back as well, that you have also clarified that there is slightly heightened competition. So my question is, with, let's say, this tariff thing settling and maybe the Ukraine issue also solving, should we see some easing of competitive intensity-led margin pressure in the coming quarters? Any color on this aspect of margin pressure that we have alluded to in the past? Any change there that you see in the near term, or this margin pressure is something which you think is going to continue?
As we mentioned, that margin pressure is because of two reasons. One is because of the competition which is always going to be there. And secondly, because we are going through, we could see that in our new model, in the business model which we have now gone for change in our model with our European subsidiary BSUK now focusing only on the higher value-added products and the direct shipments from the new capacities built in India, which would result in reduction in our fixed cost, as well as some of the initiatives part of One Usha Martin where we are focusing on shifting a lot of back-office work to India, thereby optimizing our cost, focusing on the logistics, procurement, and all these things.
All these things which are actively being pursued, we expect the year to be, and the whole year, as Shreya mentioned, to be at minimum 18% EBITDA margins from the current levels of what 16% we are in. Overall, with these initiatives and improvement in product mix and increase in volumes all coming together, we should expect to be around 18% for the year, minimum.
I understand, Mr. Jawhar. So what I'm trying to understand is that this is not assuming any change in competition, right, or any change in the intensity of competition. Am I correct in assuming that?
Yeah. This is assuming that business as usual at our current level. Yeah. That's what we are assuming as the state of business today.
Understood. And on this restructuring, right, you have spent INR 4 crores as a one-off, right, in Q4 FY 2025. How much more do we intend to spend on restructuring? And do you think that the benefit might start accruing from Q1 onwards, or this would be back-ended even in FY 2026?
Yeah. In terms of the BSUK restructuring, as part of our overall plan, we are reducing the manpower at BSUK by about 50%. And that entire provision of INR 4 crore for that restructuring largely was on account of this manpower reduction, which is a one-time cost, and we don't expect any further provisions to be taken in the upcoming quarter. This was the major cost in terms of restructuring that we see when it comes to this initiative. At the same time, we are also looking at optimizing the other fixed costs, like we mentioned, around the back-office operation. Costs would reduce, but we don't expect any further provisions in terms of restructuring to be taken.
The other question is, when do we expect the benefit of this to start reflecting? I would say from once all this is completed, we'll see the effect on the overall cost and improvement in margins from Q2 of this financial year.
Okay. Great. That's it from my side. Thank you so much.
Thank you. The next question comes from the line of Aryan Sharma from B & K Securities. Please go ahead.
Yeah. Hi. Thank you for the opportunity. Just a couple of questions regarding the guidance. So could you just guide me through, like you mentioned previously, that we can expect sequential volume growth, but could you just guide me through some numbers as to what we are expecting over FY 2026 and FY 2027?
Overall, in terms of both volume and top line, we expect, say, about a 12%-15% growth overall across the wire group as well as wire segment. LRPC, again, it's up and down depending on competitive pressure. So within that, our focus will be primarily on the plasticated LRPC, how much we can grow within our capacity of 500 tons a month.
What will be our value-add share then? What we are expecting in value-add share?
Within wire groups, our value-add share right now, in terms of revenue, is 71%. The goal is to maintain that at a minimum and with the new capacities that have come on stream and certain OEM approvals that we are targeting. Hopefully, that should grow gradually as well. But at minimum, we maintain that share.
Okay. And just one final question with regards to the restructuring which we are doing right now. So is there any quantifiable number which you guys have worked out on how much we are expecting? Just EBITDA margin jump just because of this restructuring, over-normalized EBITDA?
Abhijit, once this entire restructuring exercise is done in the European facilities and across the global entities, we are looking at the cost side for all the entities wherever we have scope. This will have an impact of 1%-2% on the margin, 1%-1.5% on the margin. The cost impact will be around 1%-1.5, maximum 2% of the margin. That we are targeting.
Yeah. Okay. That's it from my side. Thank you. Thank you for answering my question.
Thank you. Ladies, and gentlemen, if you wish to ask a question, please press star and one. Once again, a reminder. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Shraddha Kapadia from SMIFS. Please go ahead.
Shraddha, I do apologize to interrupt you there, but you are not clear. Your audio is not clear.
Hello. Am I audible now?
Yes.
Yes.
Please go ahead.
Yeah. So my question is majorly regarding the international market. So currently, they contribute approximately 55% of our revenue. So for the future or the next leg of expansion, which are the major markets which we would be targeting?
In terms of the international market, as previously mentioned, Saudi Arabia would be one of the major markets that we're targeting. There are a lot of construction projects as well as within oil and gas and the port sector in Saudi Arabia that would boost the demand for our crane ropes as well as the sling. So that is one of the markets we're targeting. Secondly, offshore wind. The offshore wind sector in the U.K. and the North Sea area is another key demand driver because we're seeing certain projects in the pipeline for the upcoming years. Thirdly, in UAE, also the oil and gas projects are gaining some traction now.
So if some of those projects materialize, then we would see growing demand for our oil and offshore ropes in the UAE as well. And then in the Americas, of course, the market was a bit uncertain over the last couple of quarters. But now, with things stabilizing a bit, we hope that the mining as well as the port and elevator markets that have been strong in the U.S., that continues as well.
That being said, while international market share has grown and now is at, say, 55% of the total top line for the last few quarters, now we think this would maintain at the same level because in the domestic market as well, we're seeing a lot of traction and a lot of, while it was slow in terms of project execution in the last few quarters, hopefully, with the demand in the elevator sector as well as some of the crane ropes and the construction sector, we see growth in the domestic market as well. So overall, the mix would largely be at the 55%-56% range for international and 45% for India.
Sure. Thank you so much for such a detailed answer. So actually, my next question was somewhat related to this only. So if we take a look, the infra spending is picking up in India, Europe.
So how do you look at this growing power for FY 2026?
Yeah. The infra growth has started picking up in India, and also, if the geopolitical situation gets better, as we discussed earlier, this should bring a big opportunity growth in the infra sector, and that would enable our demand for crane ropes and elevator ropes to be fairly strong both in the domestic and international markets because with infra growth, these are the two sectors where we see good demand should come in, so hopefully, it should get better in the coming quarters if the infra growth trend continues.
Sure. Thank you so much for answering my questions. And all the best for future.
Thank you.
Thank you. The next question comes from the line of Pritesh Chheda from Lucky Investments. Please go ahead.
Ma'am, can you give a brief, what is the capacity utilization in wire ropes that you have on the capacity, and how much is the expanded capacity addition that you have done?
So our capacity utilization for the current year is around 80%-85%, and with the additional capacity coming in, we'll be reaching around our wire rope capacity will be around 150,000, and the current value is around 104,000, so we have headroom for growth for the next three to four years, so that is the current.
So at 104,000, you are 85% utilization. So you're basically adding about 30,000 tons.
No. So 104,000 is the current volume on a capacity of 125,000. Right? And we are adding another 20,000 in the rope, so 20,000-25,000 . So it will reach around 150,000 by the end of this quarter. So on that basis, we're seeing that for the next two to three years, with a 10% volume in growth, we are quite covered.
Okay. What's your market share in U.S. and Europe in wire ropes?
In wire ropes, the market share in the U.S. would be 3%-4% overall. So we are at a low base right now. In terms of our overall top line, about 5%-6% comes from the U.S. market. So we are at a fairly low base in terms of market share and even our mix of U.S. business in the total revenue. But with certain traction in mining, elevator ropes, as well as certain port contracts that we're looking at, hopefully, that is something that we can build on. But again, the U.S. is something where there is a little bit of uncertainty. So even from the U.S. operations, we're also looking at Canada as well as Latin America as opportunities for growth. So that's something that we're looking to pursue more aggressively over this financial year.
And Europe?
In Europe, again, in different sectors, it would be different. In the fishing rope segment, for example, it would be less than 5%, while in oil and offshore, our market share is more with the Ocean MAX brand. But overall, I would say it's still between 8%-9% market share, even in Europe. The competition is obviously more intense in the European market with a lot of regional players, a couple of regional players in the high-performing sector. But I think with the new model, again, back to the new onshore model that we have with supplies from India, we think that the European market is an area where we can get a lot of growth because the customers have shown positive signs and acceptance of supplies from our Ranchi facility that have already started.
With the reduced cost, being more competitive in the market, as well as with the acceptance of our product from India, I think the combination of that should help us increase the market share in Europe.
Lastly, what is the differential EBITDA per kg between wire ropes and wires and strands?
Overall, as you know, our EBITDA per ton has been at, for the year, about INR 30,000 rupees per ton. We don't usually separate it out between wire rope and wires because a lot of the capacities are fungible. But if I have to give you a ballpark, wire ropes would be INR 55,000-I NR 60,000 rupees per ton, whereas wires would be between INR 12,000- INR 15,000 rupees per ton.
Are they not audible? Wire ropes is how much?
Wire ropes would be between INR 55,000- INR 60,000 rupees per ton, whereas wires, INR 12,000- INR 15,000 . But these are indicative.
Okay. Thank you very much.
Thank you. The next question comes from the line of Jathin from InvestSavvy Portfolio Management. Please go ahead.
Yes. Thank you for taking the question. We'd like to know what are the top two opportunities and top two risks that you see for the company, especially in light of all the global uncertainties which have crept in?
I would say the opportunities would always be in the infrastructure and the oil and offshore, which continues to be fairly robust, with most of the countries still trying to be energy self-sufficient. And that has been a growth area for us in the last year as well, and that continues to be strong. Elevator rope business also continues to be fairly strong, particularly in the domestic market, with the extensive growth in the tier two, tier three cities on the real estate business, with the multi-story buildings. So that is an area where we feel that the growth would continue to be very strong in the coming. Should be there.
On the risk side, of course, the top risk, of course, the uncertainty on the U.S. tariff, which hopefully should not be a major issue for us, but definitely with the new policy changes coming every day, uncertainties in the minds of the customers that what happens if they import and the prices are higher and then the tariffs come down, they get stuck with higher inventory. And all these uncertainties could definitely be one of the risk factors. The other risk factors could be if the geopolitical situation gets worse globally, it could definitely, again, destabilize the logistics, the market. So these could be the potential risks what we see in front of us.
Now, the fact that China's tariff has more or less seems to have been frozen at 30%, and India currently is at 26%, which could go down, would that be an opportunity for you?
For us, when it comes to the tariffs, we are under Section 232, so it's almost a level playing field of 25% for all countries. China is a bit higher, I think, at about 35% for our sector in particular. We don't see that changing. This has been effective since March 12th, and before that, there was still a bit of uncertainty, but since then, I think this has stabilized, and I mean, in the future, we don't know what that will be, but as of now, this is what it is, so for all other countries except China, it's a 25% level playing field.
The U.K. treaty has also not changed that for U.K. The U.S.-U.K. treaty, the treaty between whatever the agreement between U.S. and U.K., which was just signed, that has also not changed that for U.K.
Nothing for us. Those changes are not having any impact on us.
Okay. Thanks a lot.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for their closing comments.
I would like to thank everyone for attending the call and showing interest in Usha Martin Limited. I hope we have been able to answer all your questions. The company is dedicated to creating value for all its stakeholders in a sustainable manner. Should you need any further clarification or would you like to know more about the company, please feel free to reach out to us or to CDR India. Thank you once again for taking the time to join us on the call, and see you all in the next quarter. Thank you.
Thank you. On behalf of Usha Martin Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.