Economic Overview

� Improving business sentiments as a result of positive actions taken by the

government at centre, are expected to restore growth in future.

� Reversal of negative growth rates in commercial vehicles segment is a good sign, but

positive build up in demand would be key to drive and sustain higher volumes.

� Lower inflation rates of late should lead to reduction in interest rates, a key element

responsible for higher finance cost of the Company.

Trends in Auto Sector

65,629

52,425

41,158

62,414 62,327 62,933

35,000

45,000

55,000

65,000

75,000

Q1'FY14 Q2'FY14 Q3'FY14 Q4'FY14 Q1'FY15 Q2'FY15

M&HCVs

M&HCVs

-10%

0%

10%

20%

30%

40%

50%

Source: SIAM, Care Ratings

Receding negative growth rates in auto sector are sign of hopes, with positive future outlook.

129,472

116,188 115,578 116,000

102,824

110,825

80,000

100,000

120,000

140,000

Q1'FY14 Q2'FY14 Q3'FY14 Q4'FY14 Q1'FY15 Q2'FY15

LCV

LCV

-50%

-40%

-30%

-20%

-10%

Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15

LCV M & HCVs Tractors PV

Deallocation of Coal Mines

� Pursuant to the order by the Hon’ble Supreme Court of India, the operating coal

mine at Kathuatia with initial estimated reserves of 30 MnT stands cancelled. The

company is required to wind up its operation and handover the same to the

Government by March 2015.

� As per the said order, the Company has to pay an additional levy @ Rs. 295 per MT

on its total coal production from Kathuatia coal mine.on its total coal production from Kathuatia coal mine.

� Another coal block namely Lohari coal block with estimated reserves of 10 MnT

has also been deallocated vide said order. This coal block was in advanced stage

of compliances for commencement of operations.

� The company intends to participate in e-auction of coal blocks announced by the

Government.

Additional Levy on Coal

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

upto Sept

14

Qty in MT

• Usha Martin has been operating coal mine at

Kathautia, Daltonganj in the State of Jharkhand

to meet its captive requirement for DRI

production.

• This coal block annual production of 800,000 T

was allotted to Company in 2003 by the

Government and is operational.

Kathuatia Coal Mine – Year wise production

0.00

5.00

10.00

15.00

20.00

25.00

2008-09 2009-10 2010-11 2011-12 2012-13 2013-142014-15 upto Sept 14

Rs in Crs

• Total Coal Mined (till Sep’ 14 ) – 2.40 MnT

• Total impact of additional levy (till Sep’14) is Rs

70.67 Crs considered and shown as exceptional

item in Q2’15 & H1’’15 results

Additiional Levy impact year wise - @ Rs 295 per MT

Highlights H1’15

• Turnover increased by 24.6% on consolidated basis and 29.4% on standalone basis.

• EBDITA up by 9.3% on consolidated basis and 5.2% on stand alone basis.

• Consolidated EBITDA margin at 17.8 % and 19.0% on stand alone basis .

• DRI & Hot metal production up by 40.2% and 38.3% respectively.

• Value added Products production up by 5% on consolidated basis.

• Stand Alone export sales up by 27.4 %.

• Subdued steel demand, competition with cheaper imports and monsoon season affected

operating margins.

• Operating performance would have been better but for higher charge of depreciation and

interest.

Production Volume Growth

Consolidated

Q o QQ o Q

BilletsRolled

Products

Bright

Bars

Wires &

Strands

Wire

Ropes

Q o Q o PQPQ

172,658 MT 144,873 MT 4,080 MT 37,628 MT 26,923 MT

H1 o H1H1 o H1

51,044 MT78,119 MT8,091 MT341,228 MT 279,872 MT

1

%

2

%

Q o Q o PQPQ

7

%23

%

22

%

19

%16

%

25

%

10

%

22

%

5

%

3

%

7

%7

%

12

%2

%

Production Performance

Coke Pellet

QoPQ

15 %

QoPQ

4 %

QoQ

70 %

0

50000

100000

150000

200000

Q2 FY 14 Q1 FY 15 Q2 FY 15

0

25000

50000

75000

100000

Q2 FY 14 Q1 FY 15 Q2 FY 15

DRIHot Metal

QoQ

40 %

QoPQ

10 %

QoQ

50 %

QoPQ

10 %

0

50000

100000

150000

Q2 FY 14 Q1 FY 15 Q2 FY 15

0

50000

100000

150000

Q2 FY 14 Q1 FY 15 Q2 FY 15

Started using iron ore

fines inventory in pellets

Production Performance

Hot Metal

Iron Ore

62 % 38 %

40 %200000

250000

0

50000

100000

150000

200000

250000

300000

H1 FY 14 H1 FY 15

0

250000

500000

750000

1000000

H1 FY 14 H1 FY 15

100000

200000

300000

4000002 %

Coke

DRI

0

50000

100000

150000

200000

H1 FY 14 H1 FY 15

0

50000

100000

150000

200000

H1 FY 14 H1 FY 15

0

100000

H1 FY 14 H1 FY 15

Coal

113 %

Financial Performance

Q2 & H1’15

Consolidated Stand Alone

Q2’15 Q2’14 H1’15 H1’14 Q2’15 Q2’14 H1’15 H1’14

Net Sales 1157.99 927.17 2,313.27 1855.89 955.53 709.59 1,875.64 1449.54

Rs in Crs

PBDIT 200.34 195.24 411.48 376.56 177.15 177.39 356.22 338.77

PBT (18.21) 9.89 (50.42) 23.43 (31.07) 3.02 (83.34) 7.04

PAT (65.30) 0.86 (86.65) 4.95 (72.88) 1.70 (109.03) 3.90

PAT for Q2 & H1’ FY 15 are after considering additional levy of Rs 70.67 crs on coal, as exceptional item.

Revenue Distribution

By Geographies

India

66.9% Europe

12.1%

Asia Pacific

14.2%

Middle East

4.2%America

2.0%

Africa

0.6%

Revenue Distribution

By Products

Steel

45.3%

Wire & Strand

14.5%

Bright Bars

2.1%

Cables & Others

3.7%

Wire Ropes

34.4%

Pellet Plant

1200 KT

Architecture of Integrated Business

Mineral Resource Power Module Iron Making Module

Distribution Marketing & Service Module

Value Addition Module

Steel MakingModule

Iron Ore Mine

Crushing & Screening64 MW

Thermal

JSR

71 MW

WHRB

JSR

20 MW Thermal - Ranchi

Total - 155 MWTotal - 155 MW

Blast Furnace

600 KT

DRI

500 KT

Sinter Plant

800 KT

Sinter Plant

800 KT

Washing Plant

Coal Block – “A- C” gradeO2& Lime

Kiln Plant

Coke Oven

400 KTBeneficiation Plant

Service Module Module Module

SMS I & II

EAF 35 T & 40 T

LF & VD

150 x 150 &

110x110 Caster

SMS III

EAF 70 T LF & VD 360 X 300 Bloom Caster

Blooming & Section Mill

275 KT

Bright Bars

22 KT

Singapore

Bangkok

Indonesia

Vietnam

Australia

Dubai

Netherlands

China

Singapore

Bangkok

Indonesia

Vietnam

Australia

Dubai

Netherlands

China

South Africa

Glasgow (UK)

Houston/ (USA)

Aberdeen (UK)

Russia

Italy

Brazil

South Africa

Glasgow (UK)

Houston/ (USA)

Aberdeen (UK)

Russia

Italy

Brazil

1,000 KT Billets

Wire Rod

Mill

400 KT

Section Bar Mill

84 KT

Dubai 15 KT

Ranchi 197 KT

Hoshiarpur 48 KT

Jamshedpur 29 KT

Bangkok 36 KT

UK 9 KT

Dubai 15 KT

VA Products (Wire Ropes+Strand+Wire+Conveyor Cord)

STRENGTH THROUGH INTEGRATION

To be deallocated by Mar’15, vide order from Hon’ble Supreme Court of India

Global Footprints

Disclaimer:

This presentation may contain forward looking information that involves

risk and uncertainties. Such projections and forward looking statements

reflect various assumptions of management concerning future

performance of the Company, and are subject to significant

business, economic, environment, political, legal and competition

risks, uncertainties and contingencies, many of which are unknown and

beyond control of the Company and management. Accordingly, there can

be no assurance that such projections and forward looking statements

will be realized. The variations may be material. No representation or

warranties are made as to the accuracy, completeness or

reasonableness of such assumptions or the projections or forward

looking statements based thereon, or with respect to any of the

information contained in this presentation. The Company expressly

disclaims any and all liability that may be based on any of the information

contained herein, errors herein or omissions thereof.