Maharashtra Seamless Ltd

- Maharashtra Seamless Limited currently has no definitive plan for new fundraising through debt or equity. - The company is conserving cash primarily to eventually replace old plant and machinery, which may become obsolete. - Capital expenditure plans amount to Rs. 852 crores, of which purchase orders for less than Rs. 150 crores have been issued so far. - No aggressive inorganic expansion or acquisitions are currently planned; management continues to evaluate opportunities but hasn't found suitable ones yet. - If an opportunity arises, the company may consider raising funds via the "right issue" to share money with shareholders. - The focus remains on cost-conscious growth and maintaining a strong cash position to avoid borrowing.

- Maharashtra Seamless Limited has a capital expenditure plan of Rs. 852 crores (slide 14 of presentation). - Issued purchase orders for two projects totaling less than Rs. 150 crores so far. - Projects include a finishing line in Telangana and a cold drawn pipes project in Maharashtra. - Telangana project: Purchase orders of Rs. 80 crores issued, Rs. 46 crores spent so far; expected completion within Rs. 184 crores budget, production start anticipated by January 2026. - Cold drawn pipes project: Machines received; installation in progress with expected dispatch improvements from December quarter. - Hot mill upgrade with planned expenditure of around Rs. 350 crores yet to commence, to be addressed post Telangana line completion. - Cash is being conserved to eventually replace old plant and machinery with new technology to avoid obsolescence. - The company is also exploring inorganic growth but found no suitable opportunities currently.

- Current year tonnage expected to be similar to last year (around 442,000 tons for the seamless segment) unless Telangana line commissioning leads to revision. - Telangana plant production expected to start by January 2026, which may contribute to increased volumes. - Order book is currently slow with a decline in new orders, especially from the oil and gas sector, leading to muted near-term growth. - Export segment shows slight improvement but not enough to offset domestic slowdown. - Management expects some improvement in oil and gas expenditure in the second half of the year, possibly leading to better order flow. - Capital expenditure of Rs. 852 crores ongoing for expansion, mainly Telangana finishing line and cold drawn pipe projects, which will support future growth. - Overall growth constrained by slower tender issuance and lower domestic oil and gas spending; export growth moderate. - Long-term vision includes maintaining market leadership and capacity expansion as opportunities arise.

- EBITDA per ton margins are expected to remain muted in Q2 FY26, with no significant improvement anticipated soon. (Page 19) - Current order book is lower than desired (Rs. 1,149 crore vs. targeted Rs. 1,500 crore), indicating challenges in achieving higher revenue growth. (Page 18) - Seamless segment tonnage expected to be similar to last year's level; Telangana line project to start partial production by January 2026, possibly increasing capacity thereafter. (Page 9) - Other income, mainly from mutual fund investments, contributes significantly to PAT but involves notional gains until realized; operational profits remain the core income source. (Page 21) - Slowdown in oil and gas sector expenditure impacts domestic order inflows and margins, with some hope for improvement in the second half of the year. (Page 23) - Long-term growth remains tied to capacity expansions (capex of ~Rs. 852 crore underway) and market leadership, with cautious optimism but no aggressive earnings growth forecasted currently. (Pages 15, 19)

- Current order book as on 31 July 2025 is Rs. 1,149 crores. - There has been a decline of about Rs. 400 crores quarter-on-quarter, the sharpest in 12 quarters. - Maintaining an order book of Rs. 1,500 crores is desired; to achieve this by 30th September, Rs. 1,500 crores in orders are needed immediately. - Tender issuance by oil companies, mainly PSUs like ONGC and Oil India, is slow, impacting order inflow. - Some tenders are in process, but order finalization timelines are uncertain (can take from 15 days to 2 months). - Slowdown is mainly due to reduced oil and gas sector expenditure and Chinese dumping. - Slight improvement seen in the export segment, but not sufficient to offset domestic slowdown. - Large earlier ONGC orders largely dispatched; new orders for the second half of the year are expected but uncertain.