Quick notes on Man Industries concall:
- Order book → Unexecuted orders of 1300 crs to be completed in the next 6 months, evenly split between oil and gas and water (50-50%). EBITDA margins for oil and gas are 11-13%, while for water, they are 7-8%.
- Guidance → Projected 20-25% growth in topline (approx 3600 crs) with a 30-35% bottom-line increase. EBITDA margin expected at 9-11% (330-350 crs). For 2025-26, a topline growth of 60-70% (approx 5000 crs) with an EBITDA margin at 10-11% is anticipated. EBITDA margin includes other income, excluding which shows a 1.5% difference.
- Capex → FY24 capex was 90 crs, with 25 crs remaining to be spent in the next 2 months. For FY25, capex is estimated at 150 crs.
- ERW Plant → Anticipated revenue of 300-400 crs to commence in 2024-25, reaching 400-500 crs in FY26, with peak revenue potentially at 1000 crs.
- Stainless Steel Pipes → Operations expected from Q4FY25, serving both domestic and export markets for the oil and gas sector. Mother pipes constitute 60-70%, and pilger pipes, with higher margins and smaller sizes, make up the rest. Margins projected at 10-11%. Revenue for FY26 (first year) estimated at 300-400 crs.
- Rational for raising 250crs → Current capex of 550 crs for stainless steel, with more capex pending approval for LSAW and HSAW in different countries; debt to increase to 600-700 crs.
- Hydrogen transportation pipe → Approval from European Research Lab received after 16 months; bidding for orders in Europe started; new sector with exclusive pipes required for hydrogen; expected orders in the next 3 years; margin expectation of 18-20%; in Vibrant Gujarat approx quantity in the next 10-15 years is >5 million tonnes;
- Saudi Plant → Awaiting in-principle approvals; limited disclosure of information.
- Real Estate → Joint Development Agreement with an A+ developer; entire project development by the developer; upfront and ongoing revenue for the next 4-5 years.
- Other Expenses → Rise in expenses due to increased component of freight charges; Q3FY22 freight cost was 22 crs, rising to 70 crs this year due to more export-based orders; no observed price impact from the Red Sea.
- Volume → For this quarter, 85-90k tonnes; compared to 65k tonnes in the same quarter last year.
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