Manaksia Coated Metals reported a record Q2 FY27 with PAT rising 32.9% QoQ to Rs 18.73 crore. Revenue climbed 43.8% YoY as the company eyes a 35%-55% growth for FY27. Investors should track the upcoming Q3 capacity expansion and proposed Rs 150 crore fundraise.
Manaksia Coated Metals Q2 Net Profit Climbs 33% QoQ to Rs 18.73 Crore
Total Income surged 43.8% YoY to Rs 321.55 crore, supported by record quarterly performance.
Reader Takeaway: Strong export-led growth and cost pass-through capacity bolster margins, though execution of new capacity expansion remains critical.
What just happened
Manaksia Coated Metals & Industries Ltd announced record financial results for the quarter ending September 2024. Total income reached Rs 321.55 crore, a 22.2% increase over the previous quarter and 43.8% compared to the same period last year. EBITDA rose to Rs 36.91 crore, up 26.9% sequentially, reflecting efficient cost pass-through mechanisms. The company plans a QIP of up to Rs 150 crore to reduce debt and fund future projects.
Why this matters
The results highlight the company's ability to maintain stable EBITDA margins of 10.5%-11.5% despite volatile freight and commodity costs. By passing 90%-100% of cost fluctuations to customers, the company has protected its bottom line. The focus on high-value exports to Europe and new markets in the Caribbean provides a robust order book of Rs 525 crore.
What changes now
The company is at a pivotal growth phase. A new Colour Coating Line with 1.5 lakh MT annual capacity is set for commissioning in Q3 FY27. Additionally, a 7 MW captive solar plant is expected to go live in the same period, projected to cut grid power consumption at the Kutch facility by more than half. These developments aim to improve operational efficiency and margin sustainability.
Risks to watch
Management cited risks regarding geopolitical uncertainty that could impact freight costs and trade regulations, especially in export markets. Execution risk regarding the timeline for the new capacity ramp-up and the successful deployment of the QIP proceeds to lower debt levels will be key areas for investors to monitor closely.
What to track next
Investors should watch for the official commissioning of the new coating line in Q3, the actual timeline and pricing of the QIP, and subsequent updates on EBITDA per ton as the company shifts toward a more premium product mix.