Usha Martin Limited established in 1960 and possess 60+ years of industry

experience in the manufacturing of steel wires and wire ropes such as crane rope,
mining rope, Elevator rope, fishing rope, Telecom Cables , Steel Wires used in
railway slippers, bridges etc. Company is having six manufacturing facilities located
in Ranchi, Hoshiarpur, Silvassa, Dubai, Bangkok and the United Kingdom, which
produce one of the widest range of wire ropes in the world. Companies products are
globally marketed in six continents and 50% of revenue is derived from international
sales. Steel is basic raw material for the main products of the company.

Usha Martin Limited – ( Rs.Crore ) 20-21 19-20 18-19 17-18 16-17

Total Income 2131 2207 2509 4743 4002
Operating Profit 245 221 275 323 209
Profit After Tax 156 (62 ) 49 (271) (359)
Cash generated from Operations 214 212 974 914 686
Finance Cost 57 74 113 587 564
Total Borrowings 423 538 3160 3723 3804
Equity Capital 31 31 31 31 31
Market Price per share ( Rs.) 33 15 39 18 17

Company was having two divisions 1.Steel Division 2.Wire Rope Division. In the
year 2017-18, Steel Division was contributing around 54% of the total revenue.

During the year 2018-19, with an objective to deleverage the Balance Sheet of the
Company, a Business Transfer Agreement ( BTA ) was executed with Tata Sponge
Iron Limited (TSIL) for transfer of the Steel Business Undertaking (inter alia
comprising of steel manufacturing facility, an operative iron ore mine, coal mine
under development, captive power plants, plant & machinery of straight bar facility)
of the Company by way of slump sale on going concern basis for Rs.4525 crore
subject to working capital adjustments.

All assets & liabilities relating to Steel business are transferred to Tata Sponge Iron
Limited. Usha Martin has booked a profit of Rs.556 crore for sale of steel business.
For the June quarter,2021, Company has achieved total Income of Rs.622 crore with
th
a Profit After Tax of Rs.58 Crore. Market price of shares as on 14 October,2021
was Rs.90 per share.

Explain how you will make analysis of this company by applying different criteria’s
mentioned above in the angle of a Equity shareholder.

Which more information you need to make further analysis ?