MAN Industries’ stock hits 52-week high on securing new order

MAN Industries' (India) stock rallied nearly 11% on July 8, after the company bagged an order worth ₹1,850 crore. The company informed exchanges that it has received the "largest-ever order" from an international oil and gas firm.

Boosted by the development, MAN Industries' share price surged as much as 10.7% to hit a new 52-week high of ₹513 apiece on the BSE today. The stock opened higher at ₹502 against the previous closing price of ₹463.45 on the BSE.

The company states that the order from the oil and gas company entails supplying high-value API5L Grade line pipes for an offshore (Oil & Gas) project. The delivery of this order is anticipated within the next 12 to 18 months.

The company further reports that its current unexecuted order book totals approximately ₹4,000 crore.

Additionally, in June 2024, MAN Industries' Anjar plant in Gujarat achieved CE Certification from Bureau Veritas, France. “This certification, granted by Bureau Veritas, France, validates the adherence to stringent safety and quality standards outlined by the European Union for API 5L SAW and ERW Lines for Oil & Gas applications which is further supported by ISO 3834-2 welding certification issued by TUV-NORD as a mandatory requirement of European market,” the company stated in a BSE filing.

MAN Industries (India) Ltd reported a profit of ₹24.13 crore for Q4 FY 24, marking a 19.1% decline from ₹29.83 crore in the same quarter of the previous fiscal year. The company recorded revenue from operations at ₹810.68 crore, showing a 35.6% increase compared to ₹597.66 crore in the fourth quarter of FY23. Its EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) for the quarter stood at ₹58.4 crore, up 43.1% year-on-year (YoY).

For the full fiscal year FY24, MAN Industries posted consolidated revenue of ₹3,142.2 crore, rising by 40.8% from ₹2,231.3 crore in FY23. The company's EBITDA for FY24 was ₹293.2 crore, while its Profit After Tax (PAT) stood at ₹105.2 crore, a 54.6% increase compared to ₹68.00 crore in the previous fiscal year.

“During FY24, we witnessed a higher depreciation and interest costs that were on account of ERW mill capex, whose production was delayed due to certification and approval process,” it said in a regulatory filing.

Nikhil Mansukhani, managing director, MAN Industries (India) Limited, said, “On operation front, recently we have announced an additional order of ₹505 core to be concluded in next 6 months. From the beginning of the calendar year 2024, we have secured a total order book of ₹1,480 crore."