MAN Industries PAT grows 2.5% yoy at Rs313 million in Q3FY22; Stock under pressure

11 Feb 2022 , 03:16 PM

MAN Industries (India) Limited, one of the leading Large Diameter Pipe manufacturing company, has announced its unaudited financial results for the quarter and nine months ended December 31, 2021. The company reported a Total Income of Rs6,347 million in Q3FY22, up 15.7% yoy on account of timely execution of orders.

EBITDA stood at Rs630 million, up 2.6% yoy. The EBITDA margin stood at 10.0%. Profit after tax for the third quarter stood at Rs313 million, up 2.5% yoy, with a margin of 4.9%.

Towards close of trade on Friday, Man Industries (India) Ltd was trading at Rs101 per share down by Rs4.6 or 4.36% from its previous closing of Rs105.60 per share on the BSE.

As of date, the unexecuted order book stands at ~Rs11,000 million, to be executed over the next 5-6 months. The company continues to have a robust book of bids of more than Rs2,10,000 million at various stages of evaluation for several oil, gas, and water projects both in the domestic and global markets.

Based on this the company expects good inflow of orders in the near future.
R.C. Mansukhani, Chairman, MAN Industries (India) Limited, said “The impact of third wave of COVID is subsidising now and the markets across are opening up and recovering from the slowdown. We are witnessing a steady growth in demand and a steady inflow of orders both from the domestic and international market. During the third quarter we received new order worth ~Rs9,000 million from the oil & gas and water sector to supply line pipes.

During the quarter ended December 2021 we registered a growth in total income of about 16% at Rs6,357 million, EBITDA grew by 2.6% to Rs630 million and PAT grew by 2.5% to Rs313 million. The growth in revenue is mainly driven by timely execution of projects which gives us the confidence of achieving our yearly targets. Also, to add that in the current financial year the govt. has discontinued the export incentive scheme despite that the company is able to maintain its profitability.

The prices of oil & gas have reached multiyear high which will help drive the capex from the oil & gas majors and boost tendering and ordering activities benefiting players like us and drive growth. We continue to witness strong traction and demand from the water segment with the govt’s plans of Har Ghar Jal, Nal se Jal mission, national river linking projects, etc.

I am happy to share that the work on the induction bending process is likely to be completed and be operational during Q1FY23. Our plan of ERW steel pipes is in full swing and is likely to complete the project work by Q2FY23.

We continue to keep our employees’ health and safety as our priority which are the real strength of our company. Overall, we remain committed to deliver profitable growth and continue to be one of the major players in the industry. I would like to thank the entire team of our company for their constant hard work.”