With a market capitalization of Rs. 467 crores, the shares of the company started Friday’s trading session on a flatter note at Rs. 60.34. During the trading session, the shares hit a high of Rs. 62.89, gaining around 4 percent and are currently trading at Rs. 61.39 apiece.
What Happened:
Looking at the recent financial statements ofManaksia Coated Metals & Industries Ltd, the revenue increased by 6 percent from Rs. 182.56 crores during the March quarter to Rs. 193.78 crores in the June quarter. Contrastingly, the net profits declined by 41 percent from Rs. 5.06 crores to Rs. 2.98 crores during the same timeframe.
Comparing the same metrics on a YoY basis, the revenue jumped by around 13 percent from Rs. 171.70 crores during Q1FY24 to Rs. 193.78 crores in Q1FY25. In addition, the net profits magnified by 2,383 percent from Rs. 12 lakhs to Rs. 2.98 crores during the same period.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.37 percent and a return on capital employed (RoCE) of 20.47 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 1.51 percent.
Future Outlook:
The company anticipates an increase in both revenue and profitability in the upcoming year. This expectation is underpinned by the expansion of its production facilities, including a new Cold Rolling Complex and a second Color Coating Line, which will enhance its production capacity from 86,000 MTPA to 190,000 MTPA (New CCL to be installed of capacity 120,000MT) by FY26.
The company expects to boost its production capacity in the Galvanized Steel segment by 36 percent, growing from 32,000 MTPA in FY22 to 1,80,000 MTPA by FY26.
Manaksia is transitioning its galvanizing line to produce Alu-Zinc coated steel, a product known for its superior durability. Moreover, the company is expecting 4 percent to 5 percent EBITDA growth following the conversion to this product, without considering the increased capacity and higher productivity possible.
Additionally, the company has outlined an investment for the establishment of a new Coil Slitting Line, a Precision Slitting facility for GI and PPGI coils.
This initiative aims to enhance product customization and quality for specialized applications and is specifically designed to address the requirements of OEMs in the white goods and automotive industries.
Furthermore, Manaksia’s strategy includes diversifying its product portfolio and expanding its geographical reach, which will help mitigate risks associated with market fluctuations.
The Union Budget’s focus on infrastructure development, coupled with positive growth projections for the steel industry, has created a favourable environment. The anticipated rise in infrastructure spending is expected to boost demand for steel products, which may benefit the company.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters maintain ownership of 69.19 percent, while Foreign Institutional Investors possess 0.14 percent of the stake. The remaining 30.66 percent of shares are held by Retail Investors.
Company Profile:
Incorporated in 2010, Manaksia Coated Metals & Industries Ltd. is an Indian manufacturer and exporter specializing in coated metal products, particularly galvanized and colour-coated steel sheets and coils, used in construction, automotive, and general engineering sectors.
Written By Vaibhav Patil
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