Manaksia Coated Metals & Industries Ltd Q1 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 1
Margin
Category 1
Fundraise
Yes
Order
N/A
Capex
Yes
4 of 4 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- Capacity expansion from 1,32,000 tons to 1,80,000 tons for aluminium zinc-coated steel by FY25 Q3, aiming for 75%-80% utilization.
- Expected volume growth of 35%-40% in FY26 over FY25 minimum.
- Volume growth of 17%-20% anticipated in FY25 itself.
- Transition to aluminium zinc-alloy coated steel (Galvalume) expected to improve price realization and EBIT margins.
- Plans to enter cold rolling steel market with 3 lakh tons capacity by FY27.
- Capacity for colour coating line planned at 1,20,000 tons per annum in second phase.
- Revenue growth projected to be upwards of 50%-60% post capacity full utilization for new facility.
- Export sales expected to remain at approximately 35% of topline, with tonnage expected to increase.
- EBITDA margin improvement of 3%-5%, reaching 9%-11%.
- Strategic focus on increasing pre-painted steel production (higher EBITDA ~8%) over galvanized steel (~5%).
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Fundraise plans
Yes- **Preferential Issue**: 50% of the preferential issue was fully subscribed in the last financial year, with the remaining 50% expected to be completed within H1 of FY25.
- **Capex Funding**:
- - The solar power plant project (INR30-35 crores) has its financial tie-up already lined up.
- - The technology upgrade and capacity enhancement project (INR40 crores) is underway, with the expected commissioning in Q4 FY25.
- - Future capex plans include a second color-coating line (~INR50 crores) in the second half of FY26 and a cold rolling complex (~INR125 crores) in FY26/FY27; financial tie-ups for these are yet to be finalized but anticipated within the timeline.
- **Debt Profile**: Current long-term debt is close to nil; focus is on better working capital management and reducing borrowing costs rather than raising new long-term debt immediately.
See what Manaksia Coated Metals & Industries Ltd management said on order book — free account, 30 seconds.
Capex plans
Yes- **Technology Upgrade and Capacity Enhancement Project**: INR 40 crores capex, commissioning in Q4 FY25, increasing capacity from 1,32,000 to 1,80,000 tons/year focusing on aluminium zinc alloy (Aluzinc) coated steel.
- **Second Color-Coating Line**: Planned for FY26 with an estimated capex of INR 50 crores.
- **Cold Rolling Complex**: Planned for FY26/FY27 with an estimated capex of INR 125 crores targeting 3 lakh tons/year capacity.
- **Solar Power Plant**: 6 MW capacity with investment around INR 30-35 crores, aiming to reduce electricity costs, commissioned by April next calendar year.
- **Coil Slitting Line**: Minor investment of about INR 4-5 crores to enhance customization and product quality for OEMs and automotive sectors.
- **Sustainability Initiatives**: Installation of zero-discharge infrastructure and effluent treatment plants to reduce power costs by 10-12%.
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Margin guidance
Category 1- Technology upgrade project commissioning in Q4 FY25 expected to improve EBITDA margin by 3% (e.g., from 7-8% to 9-11%).
- Capacity enhancement from 1,32,000 to 1,80,000 metric tons will drive 35-40% volume growth in FY26 over FY25.
- Export sales expected at ~35% of total revenue for FY25, with tonnage growth.
- Aluzinc product offers better price realization, boosting revenue by 50-60% and improving margins by 3-5%.
- Long-term vision targets capacity over 3 lakh tons by FY28/FY29 with sustainable growth.
- EBITDA expected to grow by at least 3% from technology upgrades, with better returns on new capex (~28%-32% ROC).
- Solar power plant and efficiency initiatives expected to reduce costs and improve profitability starting FY26.
- Earnings per share surged by 1266.67% in Q1 FY25, reflecting strong bottom-line growth momentum.
Order book
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