India: MAN Industries optimistic about FY23, says steel export duty to benefit

Indian government's recently imposed steel export duties are likely to benefit the company by reducing raw material costs and improving the margins going ahead, SteelMint learned from MAN Industries (India) Ltd's investors call.

The company recently released its FY22 results and reported a 3% increase in its net income to INR 2,175.7 crore from INR 2,111 crore in the year-ago period. With the government's improved measures, the company is expecting a growth in its turnover by 25-30% with better EBITDA in FY23.

In addition, it expects a double-digit growth in EBITDA margins this year.

Highlights-

Order books: The company's unexecuted order book stands approximately at INR 1,300 crore as on date. These orders will be executed within six to seven months. Furthermore, the company expects good order books in the upcoming months.

The company's active bid books stand over INR 15,000 crore, out of which 85-90% belongs to oil and gas sector and the rest to water sector.

Completed projects:

• Jagdishpur Haldia-Bokaro-Dhamra- Phase II project for GAIL.
  
  
• Gas oil pipeline from MAA to Sabya of 1.75 lakh tonnes (~700 Km) for Kuwait Oil Company.
  
  
• Exported 80 inch diameter 18-meter-long pipe with 24 mm thickness for a prestigious water project.
  
  

Incorporation of MAN Offshore, MAN Stainless Steel Tubes: MAN Industries incorporated two wholly-owned subsidiaries - Man Offshore and MAN Stainless Steel Tubes Ltd - this year to diversify their product offerings under the said subsidiaries.

Update on ongoing projects:

• ERW steel pipes project work is in full swing and likely to be completed by the end of current calendar year.
  
  
• Work on steel bends and connectors (technical collaboration with OMS group) is likely to be completed and operational by Q2 or Q3 of FY23.
  
  
• Capex of INR 470 crore is planned for the stainless steel pipes and tubes project.