Manaksia Coated Metals & Industries LtdQ3 FY25
Manaksia Coated Metals & Industries Ltd Q3 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹108P/E: 28.4Market Cap: ₹1.2K CrSector: Industrial Products
Management growth scorecard
Revenue
Category 2
Margin
Category 1
Fundraise
Yes
Order
Yes
Capex
Yes
4 of 5 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 2- →Manaksia Coated Metals expects strong growth supported by strategic capacity expansions:
- → - Aluminum zinc coating line upgrade to 180,000 tons/year in FY 2026, enhancing capacity by 36%.
- → - Second color coating line commissioning in early FY 2027 will increase pre-painted steel capacity to 236,000 tons/year.
- →Exports are a key growth driver, currently comprising 85% of sales, expected to stay above 50% going forward with increasing order books.
- →Order book has grown from Rs. 450 crores to Rs. 600 crores with a 12-month execution timeline, reflecting strong demand.
- →The company targets ramping up capacity utilization aggressively, focusing on higher value-added pre-painted steel sales which now constitute 92% of sales.
- →Further expansions (Phase 3) including a second alu-zinc line and a cold rolling unit are in blueprint stages, targeting FY 2028 onwards for capacity doubling and backward integration.
- →Expected EBITDA growth through better product mix and efficiency gains with aluminum zinc coatings.
Margin guidance
Category 1- →The company expects consistent sales price realizations similar to Q2 levels with no sharp increases or decreases in steel prices going forward.
- →Capacity expansions are underway: galvanized steel (alu-zinc) capacity increasing from 132,000 to 180,000 tons in FY ‘26, and pre-painted steel from 86,000 to 236,000 tons by early FY ‘27.
- →These expansions aim to boost volumes with anticipated capacity utilization around 75%-80%, driving higher revenues.
- →Shift towards value-added products like pre-painted and alu-zinc steel, which command better margins and premiums over galvanized steel.
- →Export revenue, currently at record highs (85% of sales), is expected to remain strong, supporting margin expansion.
- →EBITDA margins improved from 20% to 31% over the last year due to higher utilization, product mix shift, and export focus, likely sustaining or improving further.
- →Upcoming projects (new color coating line, captive solar power plant) and digital initiatives (MES, CRM) will enhance operational efficiency and cost savings.
- →Earnings per share grew significantly (347% year-on-year for Q2), signaling robust profitability growth potential.
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Fundraise plans
Yes- →The company recently completed a preferential allotment raising Rs. 134.55 crores, of which Rs. 120 crores has been realized, used for debt reduction, working capital, and CAPEX (alu-zinc and color coating line).
- →For upcoming fundraising, the company is actively evaluating all possible options but no quantum or timeline has been finalized yet.
- →Future fundraises are likely aimed at supporting further capacity expansion (alu-zinc capacity from 1,80,000 to 3,60,000 tons) and backward integration projects like a cold rolling steel complex planned for FY ‘28.
- →The company continues to monitor capital market conditions to decide on the best approach for raising funds.
- →There is no explicit mention of planned debt fundraising, but the company is focusing on financial flexibility and strengthening the balance sheet.
Order book
Yes- →The current order book stands at approximately Rs. 600 crores, up from Rs. 450 crores in the previous quarter.
- →Rs. 220 crores of revenue was generated this quarter, reflecting order book execution.
- →Incremental order book growth is driven by new export orders, new MOUs with overseas customers, and new domestic market orders.
- →Expected timeline for executing the existing order book is around 12 months.
Capex plans
Yes- →Phase 1 and 2 projects underway: aluminum-zinc line upgrade (capacity from 132,000 to 180,000 tons), second pre-painted steel (color coating) line, and a 7 MW captive solar power plant.
- →Aluminum-zinc upgrade to be commissioned in Fiscal 2026.
- →Second color coating line and solar power plant expected to start early Fiscal 2027.
- →Phase 3 expansion in blueprint stage for FY 2028: includes second aluminum-zinc line and backward integration via cold rolling steel complex.
- →Capital raises include Rs. 134.55 crores preferential allotment (mostly utilized for debt reduction, working capital, and CAPEX).
- →Company continuously evaluating future fundraising opportunities to fund growth and expansion plans.
- →Focus on capacity expansion (alu-zinc from 180,000 to 360,000 tons) and backward integration to build a more integrated value chain.
How does Manaksia Coated Metals & Industries Ltd rank vs peers in Industrial Products?
Pro feature1Manaksia Coated Metals & Industries Ltd
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