MAN Industries Posts Strong Q2 FY25 Growth with 10% Revenue Increase Despite 15% Steel Price Drop In Q2 FY25, MAN Industries' standalone revenue was reported at INR 805 crore, a 10 per cent increase over Q1
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MAN Industries (India) Ltd., has released its financial results for the half-year (H1) and second quarter (Q2) ending September 30, 2024, showing resilience amid a challenging market environment marked by significant steel price declines. For H1 FY25, the company reported standalone revenue of INR 1,536.9 crore, marking a 4.4 per cent increase on a year-over-year basis. EBITDA (earnings before interest, taxes, depreciation, and amortization) for this period was recorded at INR 139.5 crore, a 4.5 per cent decrease compared to last year, with a 9.1 per cent EBITDA margin.
Profit after tax (PAT) for the half-year stood at INR 59.2 crore, a year-over-year (YoY) increase of 6.9 per cent. Consolidated revenue rose to INR 1,554.9 crore (+3.8 per cent YoY), while consolidated EBITDA was INR 132.3 crore, representing a 6.5 per cent decline. Consolidated PAT reached INR 50.9 crore, a modest 1 per cent increase over the previous year.
MAN Industries attributes this growth primarily to increased sales volumes, which offset recent steel price declines of approximately 15 per cent. Nikhil Mansukhani, managing director noted, "We are happy to announce a sustainable quarter. The industry faced a decline of 15 per cent in steel prices from its high in recent months. Having said that, your company witnessed a growth of 7.7 per cent QoQ sequentially on account of higher sales volumes."
Quarterly results demonstrated more robust growth. In Q2 FY25, MAN Industries' standalone revenue was reported at INR 805 crore, a 10 per cent increase over Q1. EBITDA for the quarter surged 25.6 per cent from the previous quarter to INR 77.6 crore, with an improved margin of 9.6 per cent. PAT for Q2 rose significantly by 45.3 per cent on a quarter-over-quarter (QoQ) basis, reaching INR 35.1 crore. On a consolidated basis, the company achieved revenue of INR 806.2 crore (+7.7 per cent QoQ) with an EBITDA of INR 74.5 crore (+28.7 per cent QoQ), and PAT surged by 67.2 per cent to INR 31.9 crore.
Mansukhani also highlighted MAN Industries' solid pipeline of pending orders, which currently stands at an impressive INR 3,100 crore. He expressed optimism for the coming months: "Our promising guidance for the financial year is intact. On the operational front, we have a strong order book of INR +3,100 crore to be concluded in the next 6 to 12 months."
Additionally, the company is advancing its expansion plans for SAW and stainless-steel seamless tubes, a move Mansukhani sees as a strong commitment to stakeholders. "We envisage a strong order book for coming quarters and are hopeful for a stronger performance going forward," he added, underscoring a vision of sustained growth.
With a net cash position of INR 201.8 crore, MAN Industries remains financially stable, positioning itself to leverage opportunities amid industry fluctuations
