Man Industries' consol profit more than doubles to Rs 82 crore in Jul-Sep
Man Industries reported a more than twofold rise in consolidated Q2 profit to Rs 82 crore, driven by 49% revenue growth and record EBITDA. Saudi acquisition boosted margins, while a Rs 3,500 crore order book supported business prospects.
By Nikita Periwal, ET Bureau |
Agencies
Man Industries posted strong Q2 earnings, with record EBITDA, expanding margins and Saudi acquisition benefits, while logistics disruptions deferred shipments worth Rs 320 crore.
Man Industries (India)’s consolidated profit has more than doubled year-on-year to Rs 82 crore for the September quarter, aided by a 49% growth in revenue from operations to Rs 1,216 crore.
The pipe-maker’s consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at an all-time high of Rs 190 crore, up nearly 87% on year. Margins expanded 310 basis points year-on-year to 15.6%.
The margin expansion was driven mainly by the contribution of Saudi Arabia-based National Pipe Co, which has been consolidated with the company since its acquisition in May. “The acquisition of NPC has added scale and profitability to our business, and its integration is progressing well,” managing director Nikhil Mansukhani said in a statement.
Man Industries currently has an order book of Rs 3,500 crore across India and Saudi Arabia, most of which is executable over the next six – nine months.
The company also said that its joint development agreement with the Paradise Group at Navi Mumbai is expected to generate cash flows of Rs 700 – 800 crore in the next five-six years, while production at its greenfield stainless steel seamless pipe plant at Jammu is expected by April 2027.
At a standalone level, Man Industries’ revenue was 7.7% lower at Rs 721 crore for the quarter, while profit after tax rose 12.4% to Rs 40 crore. EBITDA margins remained flat at 12.9%.
Geopolitical conflict in West Asia has disrupted key maritime routes, particularly the Strait of Hormuz, causing port congestion and delays in dispatches of finished goods. As a result, revenue of approximately Rs 320 crore was deferred beyond Q2 FY27, which weighed on standalone revenue, the company said in a statement. The customer has since nominated alternate ports, and these shipments are being executed, it said.
The company reported its earnings during market hours, and its shares closed at 872.90 rupees on the BSE, up nearly 4% from the previous close.
The pipe-maker’s consolidated earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at an all-time high of Rs 190 crore, up nearly 87% on year. Margins expanded 310 basis points year-on-year to 15.6%.
The margin expansion was driven mainly by the contribution of Saudi Arabia-based National Pipe Co, which has been consolidated with the company since its acquisition in May. “The acquisition of NPC has added scale and profitability to our business, and its integration is progressing well,” managing director Nikhil Mansukhani said in a statement.
Man Industries currently has an order book of Rs 3,500 crore across India and Saudi Arabia, most of which is executable over the next six – nine months.
The company also said that its joint development agreement with the Paradise Group at Navi Mumbai is expected to generate cash flows of Rs 700 – 800 crore in the next five-six years, while production at its greenfield stainless steel seamless pipe plant at Jammu is expected by April 2027.
At a standalone level, Man Industries’ revenue was 7.7% lower at Rs 721 crore for the quarter, while profit after tax rose 12.4% to Rs 40 crore. EBITDA margins remained flat at 12.9%.
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Geopolitical conflict in West Asia has disrupted key maritime routes, particularly the Strait of Hormuz, causing port congestion and delays in dispatches of finished goods. As a result, revenue of approximately Rs 320 crore was deferred beyond Q2 FY27, which weighed on standalone revenue, the company said in a statement. The customer has since nominated alternate ports, and these shipments are being executed, it said.
The company reported its earnings during market hours, and its shares closed at 872.90 rupees on the BSE, up nearly 4% from the previous close.
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