India: MAN Industries posts 18% q-o-q decline in revenue in Q1FY24

MAN Industries' total revenue for Q1FY'23 stood at INR 4,904 million, down by 17.9% q-o-q compared to INR 5,977 million in the preceding quarter (Q4FY'23), the company said in its investors' call held on 8 August, 2024. Moreover, revenue declined by 3.9% y-o-y against INR 5,105 million in same quarter of the previous year (Q1FY'23).

EBITDA declines y-o-y: Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) increased by 14.1% q-o-q to INR 468 million in Q1FY24 against INR 410 million in Q4FY'23. Moreover, the same rose by 110% y-o-y in Q1 compared to INR 222 million in Q1FY'23.

Profit after Tax (PAT) down y-o-y: MAN Industries reported a PAT of INR 112 million, down 57.1% q-o-q compared to INR 261 million in the preceding quarter. However, the same rose by 14.3% y-o-y against INR 98 million in the same quarter a year ago.

Highlights

Order books: The company's unexecuted order book stands approximately at INR 1,900 crore, which is bound to be executed in next 5 to 6 months. Of this, approximately 70-80% are export orders and remaining 10-20% are domestic orders.

Bid book status: The company continues to have outstanding bids for more than INR 13,000 crore at various stages of evaluation for several oil, gas and water projects in India and abroad. The company, therefore, expects good order inflow in the near future.

Manufacturing capacity: MAN Industries' combined manufacturing capacity of 2 plants, one at Anjar, Gujarat and other in Pithampur, Madhya Pradesh is 1.15 million tonnes (mnt) per year of LSAW, HSAW and ERW pipes.

Loss due to natural calamity: Due to cyclone Biparjoy and subsequent heavy rain resulted in production loss, civil/infrastructure damage and delay in scheduled shipment, which affected the company's Q1 performance of FY24.

Update on projects: During Q4FY23, the company successfully ventured into the ERW pipe segment and inaugurated first plant in Anjar, Gujarat, dedicated to manufacturing ERW API grade line pipes to cater to the hydro-carbon and CGD sectors.

The plant has received prestigious BIS certification including IS1239, IS1161 and IS 3589 standards. API audit is under progress and the company will soon receive the API certification.

CAPEX: The company is not planning any new capex in India currently. Moreover, ERW capex for the company has also been completed.

Outlook: MAN Industries expects good order inflow with continuous outstanding bids for several oil, gas and water projects in India and abroad. In addition, the company is also undertaking capex to further widen its product offerings by entering manufacturing of stainless-steel pipes.