India: MAN Industries posts robust growth in revenue for FY'24

MAN Industries disclosed a 41% sequential increase in its revenue from operations, amounting to INR 31,422 million during financial year 2024 (FY'24) in contrast to the INR 22,313 million recorded in FY'23, as revealed in the investors' call conducted on 28 May, 2024.

EBIDTA increases y-o-y: The company reported an EBIDTA of INR 2,932 million in FY'24, rising by 67% compared to INR 1,760 million in FY'23. However, EBIDTA went down by 8% q-o-q to INR 727 million in Q4FY'24 against INR 790 million in Q3FY'24.

PAT rises y-o-y: MAN Industries reported a PAT of INR 1,051 million, up by 57% y-o-y compared to INR 670 million in the previous financial year. Moreover, the same saw a decline of 21% q-o-q to INR 241 million in Q4FY'24 against INR 306 million in the previous quarter.

Highlights

1. Order books: The company's total order book stands impressive at INR 21,000 million, which is to be executed within the next six months.

The robust order pipeline reflects not only the demand for the company's product but also its operational capability.

2. Manufacturing capacity: MAN Industries' combined manufacturing capacity of three plants, two at Anjar, Gujarat and the other in Pithampur, Madhya Pradesh is 1.18 million tonnes (mnt) per year of LSAW, HSAW and ERW pipes.

To maximise efficiency, the company is currently working on three key initiatives: optimising current ERW mill capacity, identifying areas for improvement in the existing setup, and investing in capital expenditures (capex) to upgrade the equipment and streamline production.

3. Update on projects: Company's ERW mill has achieved a major milestone by securing API certification. These certified pipes are in high demand within the lucrative oil and gas (O&G) industry. While the mill began operations late in the last fiscal year, they are confident that the ERW segment will achieve profitability in the current year.

Moreover, to better serve the growing demand in Chemical, Oil & Gas, and Fertiliser industries, the company is expanding its Anjar facility with a new production line for Seamless Stainless Steel Pipes.

Outlook:

Fuelled by a robust order book for the coming quarters, the company anticipates even stronger performance moving forward. Moreover, they are actively pursuing expansion plans for both SAW and stainless-steel seamless tubes. These projects are well on track for completion.