India: MAN Industries' Q2FY'24 highlights

MAN Industries' total revenue for Q2FY'24 stood at INR 10,180 million, surged by 108% q-o-q compared to INR 4,904 million in the preceding quarter (Q1FY'24), the company said in its investors' call held on 9 November, 2023. Moreover, revenue increased by 119% y-o-y against INR 4,651 million in same quarter of the previous year (Q2FY'23).

In H1FY'24, company's revenue rose by 54% to INR 14,985 million against INR 9,756 million in H1FY'23.

EBITDA surges q-o-q: Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) surged by 97% q-o-q to INR 887 million in Q2FY'24 against INR 451 million in Q1FY'24. Moreover, EBITDA in Q2FY'23 was around INR 103 million.

The same EBITDA increased by 598% y-o-y in H1FY'24 to INR 1,354 million compared to INR 194 million in H1FY'23.

Profit after Tax (PAT) was up on q-o-q basis: MAN Industries reported a PAT of INR 390 million, up 248.2% q-o-q compared to INR 112 million in the preceding quarter. In the same quarter a year ago PAT accounted for INR 51 million
In H1FY'24, PAT sharply increased by 950% to INR 504 million against 48 million in the same period last year.

Highlights

Order books: The company's unexecuted order book stands approximately at INR 1,400 crore, which is bound to be executed in next 6 months.

Bid book status: The company continues to have outstanding bids for more than INR 14,000 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 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: Seamless stainless steel pipe unit is progressing very well, long lead equipment orders are placed in the beginning of the year from Europe and Japan and the project is likely to be completed by second half of FY'24.

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 to maintain its strong performance in the coming quarters, driven by continued demand from the power and infrastructure sectors. The company is also targeting new markets, such as the oil and gas sector, to further diversify its business.