Manaksia Coated Metals & Industries Ltd

- 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.

- 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.

- 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.

- 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.

- 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.