Man Industries (India) Ltd, a leading manufacturer of large-diameter SAW pipes, has reported a multi-quarter high EBITDA margin in Q3 FY25, showcasing strong operational efficiency despite a decline in revenue.
On a standalone basis, the company’s revenue fell from INR 8,309 million to INR 7,308 million year-over-year (YoY). However, EBITDA margin expanded from 10.0% to 11.6%, and PAT margin improved from 4.4% to 5.0%, signaling better cost management and operational resilience.
On a consolidated level, revenue declined to INR 7,319 million from INR 8,330 million YoY. Yet, EBITDA margin rose from 9.3% to 11.4%, and PAT margin increased from 3.6% to 4.6%, reflecting improved profitability.
For the nine months ended December 2024 (9MFY25), standalone revenue stood at INR 22,678 million, while EBITDA margin remained stable at 9.8% and PAT margin expanded to 4.2%.
Man Industries has secured a new INR 2.5 billion order, taking its current order book to ~INR 29 billion, which is expected to be executed within the next 6 to 12 months. Additionally, its bid book stands at ~INR 150 billion, indicating a robust growth pipeline.
The company’s Saudi and Jammu expansion projects are progressing as planned, with production expected to commence in Q3 FY26. Furthermore, it has successfully completed the ERW plant assessment by MECON for API 5L X 70 grade and has started exporting ERW pipes.
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Despite revenue challenges, Man Industries’ operational efficiency and strong order book position it well for sustained growth. Investors looking for a data-driven valuation perspective can leverage InvestingPro’s Fair Value feature, which estimates the company’s fair value at INR 311.5 per share, implying an 11.7% upside potential from the current market price of INR 278.4.
With InvestingPro, investors can assess real-time fair value estimates based on multiple financial models, ensuring well-informed investment decisions. Moreover, InvestingPro is currently offering up to 45% off on subscriptions, making it the perfect time to access cutting-edge stock analysis tools.
As Man Industries navigates market challenges with improved margins and strategic expansions, investors can use InvestingPro’s insights to stay ahead and seize potential opportunities.
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