Usha Martin Limited, leading producer of Speciality Steel and one of the largest Wire Rope manufacturer globally announced its result for the third quarter and nine months ended 31st December 2011.

Operational Highlights

1. Operational performance could have been better, but for higher cost of metallic, coke, coal & slow down in key market segments, kept margins under pressure.

2. Poor market conditions caused lower offtake and checked passing on of cost increase.

3. Usha Siam, Thailand, a key subsidiary was non functional due to floods since mid October' 11, causing lower turnover and profitability in international business.

4. Hardening of interest rates resulted in higher interest charges.

5. Depreciation charge was also higher.

6. As per amended AS 11 losses on restatement of project loans (INR 95 crores Q2 & INR 92 crores Q3) were capitalized and to be amortized over life of assets.

7. Implementation of new CAPEX for INR 1200 crores in progress.