Manaksia Coated Metals & Industries Ltd (MANAKCOAT) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Go India Advisors LLP): Ladies and gentlemen, good day and welcome to Q2 H1 FY27 earnings call for Manaksia Coated Metals & Industries Limited, hosted by Go India Advisors LLP. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Sana Kapoor. Thank you, and over to you.
Sana Kapoor (Go India Advisors LLP): Thank you, Aisha. Good afternoon everyone and welcome to Manaksia Coated Metals & Industries Limited earnings call to discuss Q2 and H1 FY27 financial performance. Today we are joined by Mr. Karan Agrawal, Whole Time Director, and Mr. Mahendra Bang, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr. Karan Agrawal to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Karan Agrawal (Manaksia Coated Metals & Industries Ltd): Thank you, Sana. Good afternoon everyone and a warm welcome to our Q2 and H1 FY27 earnings call. I, Karan Agrawal, Whole Time Director of the company, would like to thank all the analysts, investors and stakeholders for taking the time to join us today. We will take you through our financial and operational performance for the quarter and half year ended 30th September '26, and will discuss updates on our strategic projects and future outlook. We will then open the floor for questions. Our financial results, investor presentation and press release have already been uploaded on the company's website and the stock exchanges. I hope you have had the chance to review the same. Q2 FY27 has been a strong quarter for the company with record revenue, EBITDA and profit after tax for both the quarter and the half year. We have continued to build on the progress made on Q1 with improved realizations, a stronger contribution from value-added products and sustained demand across our export markets. The operating environment remains challenging with geopolitical uncertainties and elevated cost of raw materials and freight costs. Our focus has therefore remained on pricing discipline and ensuring that new orders adequately reflect the prevailing cost environment. We also adopted breakbulk shipping for large-scale exports to Europe to mitigate the impact of high container freight costs. These measures, along with improved realizations and our focus on value-added products, have supported our performance during the quarter. Financial performance. Total income for Q2 FY27 stood at Rs. 321.55 crores, registering a growth of 22.2% quarter-on-quarter and 43.8% year-on-year. For H1 of FY27, total income increased 22.4% year-on-year to Rs. 584.62 crore. Realization per tonne improved to Rs. 95,291 per tonne during the quarter, an increase of 7.6% sequentially and 8.3% year-on-year. This improvement reflects our continued focus on product premiumization, a favorable product mix and disciplined pricing. EBITDA for Q2 FY27 increased by 26.9% quarter-on-quarter to Rs. 36.91 crore, while EBITDA margin improved to 11.48% from 11.06% in Q1. For H1 FY27, EBITDA stood at Rs. 66 crore, registering a growth of 13.7% year-on-year. EBITDA per tonne increased to Rs. 11,536
Karan Agrawal (Manaksia Coated Metals & Industries Ltd): This reflects the contribution of our upgraded Aluzinc technology, better realizations, and growing acceptance of our value-added steel products throughout our export and domestic customer base. Profit after tax increased 32.9% sequentially to rupees 18.73 crore and total comprehensive income rose to rupees 19.02 crores for the quarter while in H1 FY '27, PAT grew 17.4% year-on-year reaching rupees 32.83 crore. Cash profit for half of the year also increased by 22.2% year-on-year reaching rupees 39.46 crore, reflecting improved earnings and cash generation. Finance costs for H1 of FY '27 declined to rupees 15.34 crore from rupees 16.03 crore in H1 of FY '26, a reduction of approximately 4.4%. Interest coverage ratio improved to 3.88x from 2.85x as of 31st March. Finance costs increased sequentially to rupees 8.48 crore in Q2 from rupees 6.86 crore in Q1. On the operating side, our product mix continues to move towards higher value-added products. Prepainted steel accounted for 69.19% of total sales in Q2 of FY '27, while Aluzinc steel contributed 26.48%. Our special Aluzinc products are gaining traction in applications such as drywall systems, metal ceilings, and premium metal roofing across domestic and international markets. Exports remained a key growth driver. Export revenue increased 33.4% quarter-on-quarter and 21.2% year-on-year to rupees 227.07 crore, contributing 71.25% of the total revenue in Q2 of FY '27. For H1 FY '27, export volumes reached an all-time high of 40,561 metric tons, generating revenue of rupees 397.28 crore, up 20.7% year-on-year. Domestic revenue for H1 H- FY '27 increased 30.3% year-on-year to rupees 183.55 crore. The company also expanded its Aluzinc business with domestic sales increasing 22.1% quarter-on-quarter and export sales increasing 457.2% quarter-on-quarter, supported by entry into new markets such as South America and Central America. Our total order book currently stands at rupees 525 crore, of which rupees 420 crore comprises export orders scheduled for execution over the next 5 months. This provides us encouraging visibility on demand as we continue to expand our presence across international markets. I will now take you through few updates on our strategic projects and future outlook. The second color coating line. The project is currently in the final stages of trials and pre-commissioning, with commissioning targeted within Q3 of FY '27. The new line will add 1,50,000 metric tons per annum of capacity, taking our total prepainted steel capacity from 86,000 tons per annum to 2,36,000 tons per annum, an increase of approximately 174%. This expansion will significantly enhance our ability to cater to larger customer requirements and increase our contribution from the highest value-added products. With encouraging demand among our existing customers, the additional capacity is an important part of our growth plans. The 7-megawatt captive solar power plant is nearing readiness and grid connectivity, with commissioning targeted for Q3 FY '27. Once operational, the plant is expected to offset approximately 50 to 55%
Karan Agrawal (Manaksia Coated Metals & Industries Ltd): our dependence on grid power. Alongside these capacity and energy initiatives, we are progressing with our with our digitization plans. Salesforce CRM implementation is targeted for Q3 FY27 and will provide centralized visibility of customer interactions, inquiries, orders, after-sales activities across domestic and export markets. Manufacturing Execution System, or MES. We are implementing an MES software at our Kutch facility with a go-live targeted for Q1 of FY28. This system will strengthen production planning, process control, quality management, and dispatch coordination, supporting greater operational efficiency as the business scales up. Outlook and growth strategy. Looking ahead, we see multiple opportunities to strengthen our operating performance over the coming quarters. The second color coating line will provide additional capacity in the prepainted steel segment, allowing us to cater to larger orders and increase the share of premium products. At the same time, the captive solar power plant is expected to improve our energy cost structure. Our upgraded Aluzinc portfolio continues to gain market acceptance as we further as we see further opportunities to expand our business with existing customer while entering new markets. Our export order book provides encouraging visibility, and we remain focused on timely execution and maintaining strong customer relationships. We will continue to prioritize disciplined pricing, product premiumization, cost optimization, and operational excellence. Our focus remains on ensuring that capacity expansion, backward integration translate into sustainable revenue growth and improved profitability. These initiatives form an important part of our broader FY29 vision to triple output, revenue, and EBITDA. We believe that the combination of increased capacity, stronger value-added product portfolio, and improved energy efficiency with a wider international presence will support our long- long-term growth ambitions. With this, I would like to open the floor for questions and answers. Thank you and over to you, Sana.
Moderator (Go India Advisors LLP): Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sunil from MCPS Investment. Please go ahead.
Sunil (MCPS Investment): Sir, congratulations on a good set of numbers and thank you for providing me with this opportunity. Sir, just wanted to ask one thing, like sir we have the aim of tripling the revenue by FY29. And I think we did around 896 crores of revenue in FY26 and we have done already 584 crores of revenue in H1. So, how confident are we in meeting the target first of all? And sir what is the guidance for FY27?
Karan Agrawal (Manaksia Coated Metals & Industries Ltd): Yes, good afternoon Sunil ji. Thank you for your question. It's true that we are having strong ambitions to triple our revenue, volumes, and profitability by FY26. And with the upcoming commissioning of our second color coating line, I think a good part of this target would be achieved, because we are aiming to increase our total output by roughly 175% from the existing output of our prepainted steel products. So, naturally, you can imagine that a large part of that target could be potentially fulfilled by this second color coating line, which is coming on-stream in the in the existing quarter, while we speak. Beyond this, we have been transparently sharing our growth ambitions by investing in backward integration and a second Aluzinc facility in Kutch, which would make us you know, really, really
Karan Agrawal (Manaksia Coated Metals & Industries Ltd): to reach a potential level of 360,000 tons per annum, which is you know, in a way, three times of what we are doing today. So, if we are able to execute the projects on time, we are quite confident that this target of 3x revenue with the reflection in the growth of bottom line as well, should be possible by FY '29.
Sunil (MCPS Investment): Sir, will it be possible for you to attribute a number for FY '27 and '28 in terms of revenue?
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