India: MAN Industries posts q-o-q revenue decline in Q3FY'24

MAN Industries disclosed an 18% sequential decrease in its revenue from operations, amounting to INR 8,330 million during Q3FY'24 in contrast to the INR 10,180 million recorded in Q2FY'24, as revealed in the investors' call conducted on 24 January, 2024. Nevertheless, there was a notable 27% y-o-y surge compared to INR 6,581 million reported in Q3FY'23.

EBIDTA drops q-o-q: The company reported an EBIDTA of INR 791 million, dropped by 11% compared to INR 887 million a quarter ago. However, EBIDTA went up by 9% y-o-y against INR 725 million in Q3FY'23.

PAT rises q-o-q: MAN Industries reported a PAT of INR 306 million, down by 22% q-o-q compared to INR 390 million in the preceding quarter. Moreover, the same saw a decline of 18% as against INR 372 million in Q3FY'23.

Highlights

Order books: The company has secured a substantial new order valued at INR 4,000 million recently. This substantial addition brings the company's total order book to an impressive INR 13,000 million, which is to be executed within the next six months.

This significant new contract highlights Man Industries' strong market position and the confidence clients have in their technological and operational capabilities.

Manufacturing capacity: MAN Industries' combined manufacturing capacity of three plants, two at Anjar, Gujarat and other in Pithampur, Madhya Pradesh is 1.15 million tonnes (mnt) per year of LSAW, HSAW and ERW pipes. Moreover, the company is working towards optimum utilization of current capacity, identification of area of improvement in current setup and upgrade the existing setup by undertaking capex to further streamline production.

Update on projects: To better serve the growing demand in Chemical, Oil & Gas, and Fertilizer industries, the company is expanding its Anjar facility with a new production line for Seamless Stainless Steel Pipes.

The board plans to raise up to INR 2,500 million for strategic initiatives and expansion, pending regulatory approval.

CAPEX: To diversify its product portfolio, the company is investing in capital expenditure to start the manufacturing of Stainless Steel pipes.

Outlook: Fuelled by a robust order book for the coming quarters, the company anticipates even stronger performance moving forward. They are confidently pushing ahead with their expansion plans, already well on track to achieve their goals.