Man Industries (India) Limited (NSE: MANINDS) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Unidentified Speaker
Pritish Urumkar — Equity Research Associate
Vijay Gyanchandani — Deputy General Manager, Investor Relations
Ramesh Chandra Mansukhani — Chairman
Sandeep Kumar — Chief Financial Officer
Rahul Rawat — Company Secretary
Analysts:
Unidentified Participant
Pritesh Chheda — Analyst
Dhananjay Mishra — Analyst
Darshil Pandya — Analyst
Raman KV — Analyst
Arpit Tapadia — Analyst
Anil Jain — Analyst
Kushal — Analyst
Radha Agarwalla — Analyst
Arvind — Analyst
Raghav Rathi — Analyst
Tawan Shah — Analyst
Prabhu Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the mann Industries Indiaal Q4NFY 25 earnings conference call hosted by ICICI Securities Limited. 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 touchstone phone. I now hand the conference over to Mr. Pratish Umarkar. Thank you. And over to you sir.
Pritish Urumkar — Equity Research Associate
Thank you. Moderator. Good afternoon everyone and thank you for joining us today for Man Industries Q4FY25 earnings con call for. First of all I would like to thank management for providing us this opportunity to hold the call. From the investor relations side we have Mr. Vijay Gyanchandani, DGM. So without any further delay, I would like to hand over this call to Mr. Vijay. Thank you. And over to you, sir.
Vijay Gyanchandani — Deputy General Manager, Investor Relations
Hello. Hello.
operator
Yes, sir. Yes.
Vijay Gyanchandani — Deputy General Manager, Investor Relations
Am I audible?
operator
Yes, sir. Perfect.
Vijay Gyanchandani — Deputy General Manager, Investor Relations
Good afternoon everyone and thank you for taking the time to join our earnings conference call for Q4 and full year of financial year 2025. I am Vijay Gyanchandani, Deputy General Manager of Investor Relations at Man Industries India limited. Joining me on the call today are members of our Senior Leadership Team. Dr. Ramesh Chandra Mansudani, Chairman, Mr. Sandeep Kumar Garg, CFO, Mr. Rahul Rao, Company Faculty. I trust you had the opportunity to review our Q4 and FY25 results and the investor presentation which we have shared with the stock exchanges and are also available on our company’s website.
To begin today’s session, our chairman Dr. Ramesh Mansukhani will share some key business highlight and a strategic outlook for the company. This will be followed by our CFO Mr. Sandeep Garg who will walk you through the financial performance for the quarter and a full fiscal year after that. We can open the floor for a Q and A session. With that I would like to hand over the call to our chairman Dr. Ramesh Mansukhani. Thank you. And over to you sir.
Ramesh Chandra Mansukhani — Chairman
Good evening everyone. We welcome you all. This is Ramesh Mansoukhani. And again I welcome you all to our earning conference call for the fourth quarter and financial year 2025. Let me begin by sharing some key business highlights and our outlook. We have delivered a record performance for the quarter and full year. Our revenue for the year grow 12% in spite of 12% decline in steel prices during the fiscal. Our profit after tax has increased 50% year 40. Sorry, 45% year on year driven by strong Operating performance Our EBITDA margin expanded 70 basis by 2 around 9.9% approximately 10% EBITDA margin as of 31st March 2025 our order book extends at 2,500 crore with a healthy bid pipeline approximately 15,000 crore.
All announced project are progressing well and based on the current education visibility we are confident of achieving 20% growth top line during this year we are anticipate at 50.100 basis improvement in EBITDA margins driven by a more favorable product mix. A high contribution from non water infrastructure project and exports as well as value added education such as bends and special coating export now account for around 75 to 80% of our total consolidation revenue and 80% of our current order book. Underscoring our commitment to expanding our footprint in key international market we are also seeking a good traction to our ER segment which now contributes approximately 10% of the consular revenue that is our new division started last year only we got the API all the accreditations to enable us to export and we got some export orders also from western countries is a mark of significant improvement in the ERW segment.
In the SA pipe business particularly in the ELSA category we are seeing continuous strong traction primarily driven by robust international demand for pipeline infrastructure and a revival in large island gas transmission project. The technical strength of our ELSA pipe especially their ability to handle high pressure and long distance transport make them well suited for these complex projects. This demand trend reinforce our confidence in sustained growth from this product line over the coming quarters. Yeah, now I’m. Now I’m coming to the updation on the monetizing of non core assets. I would like to provide an update on the monetization of our non core assets Marino Shelters Federal Limited a wholly owned subsidy of the company on 31 March 2025 Marino Shelter executive dedap assignment and granted development right for a land parcel of approximately 6 acre located opposite Dubai Patil Stadium New Mumbai to Paradise Green Spaces LLP part of the Paradise Group.
A upfront consideration of Rupees 70 crore has already been received. The company will also be entitled to 30% of the total developed area equivalent to approximately 450,000 square foot of the RERA corporate, both commercial and residential. The estimated monetization value of our share in the developed property is expected to be in the range of 650 to 700 crore in five and six years. According to the total project monetization value this transaction is estimated to be between 720 to 770 crore new business both of our new Projects in Saudi Arabia Jammu are progressing well remains on track to be operational and by quarter 3 FY26 as of FY25 out of total capex around 1150 crore of these two projects we have incurred we are regularly incurring our capex and most of the equipments etc LC is stabilist and it’s a good progress and we expect to spend an additional amount in the remaining year to complete the project.
Recent recent vendor approval which is very important before I conclude I am pleased to announce that we have received a official approval from Qatar Energy LNG as a listed vendor this is significant achievement. Further solitary our position is a trusted supplier in global energy sector it also represents an important step in expanding our presence in the Middle East. With that I would like to hand over the call to our CFO Group CFO Mr. Sandeep Kumar who will walk you through the detailed financial performance of quarter four and full year 2025 over to Sandeep.
Sandeep Kumar — Chief Financial Officer
Thank you Mr. Chairman. Good evening everyone. Let me take you through the financial highlights for the results. Our company in the Q4FY24 25 consolidated total income is 1233.9 crore which is 50% higher yoy and EBITDA is also rupees 136.7 crore up 88% yoy. The EBITDA margin has also increased to 11.1% which is 230 bps higher yoyo and paid for this quarter has been 68.1 crore up 182% yoy. I am taking to the FY25 consolidated full year number. Total income for the full year is 3557 crore which is higher by 11%. YoY and EBITDA for the full year is 353.2 crore which is higher by 20% YoYo.
The EBITDA margin for the year as a whole is 99% which has increased 70bps from last year. YoY the paid for the year 153.2 crore up 46% YoY. So this number what we have achieved this year are the highest ever number company has ever achieved. And I also like to. Brief. About good performance good order which our Chairman has already highlighted. We can open the forum for the question answer now.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Pritesh Cheddar from lucky investment. You may proceed.
Pritesh Chheda
Yes sir. One of the merino shelter inflows. So now this. This 30% of 4 lakh 50,000 vera carpet. So what should be the flow of money? Will it be basically linked to you? Selling it regularly and based on milestone. You get it. That’s how it will be for the next seven years.
Ramesh Chandra Mansukhani
The total estimation of the project five to six years. All the approvals we got it. And the work is already started. We got 70 crore rupees year 2025 current year revenue also will get every year. We’ll get the revenue for next 56 years. We are estimating around 700 crore revenue will be there.
Pritesh Chheda
So that I understood. Now it will be linked to you selling that area, right?
Ramesh Chandra Mansukhani
No. We will get the area. And with our consent the the as per the market condition they have to developer has to sell the 30 hours and 70% theirs. We will get 30% revenue. No expenses. Nothing is there. It’s a net.
Pritesh Chheda
So it’s now linked to basically selling of the area.
Sandeep Kumar
Yeah. We expect almost 80 crore revenue coming in first first year and then 100 and 120 crore every year over the next five years.
Pritesh Chheda
So this 80 crore first year means first year is FY26 or first year for you. FY25.
Sandeep Kumar
Okay. We are talking about FY25 is already over where we have received.
Pritesh Chheda
Okay. Okay. So basically now this year from the developable area you get the first tranche of 80 crores. The 70 crore has already flowed in FY25 approximately.
Sandeep Kumar
Yes sir. Approximate.
Pritesh Chheda
Okay. The second question is on the order book that you mentioned at 2500 crore. And the bid pipeline that you mentioned at 15000cr. What was the same number last year? If you have it,
Sandeep Kumar
the last year. Sale was 3500crores revenue.
Pritesh Chheda
Sorry.
Sandeep Kumar
Current year our revenue has been 3500cr.
Pritesh Chheda
Sir, I am asking the order book number this two and a half thousand which you mentioned even have to compare versus last year. What it would have been at the year end last year. The order book and the yearend bid pipeline last year. So FY24 end 25 end.
Sandeep Kumar
Whatever we announced that time we already achieved. But this 2500 crore comfortable order position to achieve the new target current year. Because we have bid book very comfortable. And we are expecting order would be materialized very soon. Find it corrode will be completed. Will be completed in this current year 26.
Pritesh Chheda
Okay sir, on the last question on the quarter four number in the margin is it that you have started booking some orders which are high margin and hence we see what it is for quarter four. And so let’s say is it linked to the Southeast Asia order that you had announced the exchange? Is it linked to that and how much of that order is executed?
Ramesh Chandra Mansukhani
No, this is partly all the many projects are going together and mostly the exports and the realization is improved. Because we nowadays we are more getting the high value added products, very specialized products. The company object objective and motto it gets more value addition to reward to our shareholders.
Sandeep Kumar
And I would like to add here that I think you are referring to that Far east order for which exhibition will start from this current quarter Q1. FY26. We will start executing this order and its order will be completed this complete full year. FY26 order will be completed.
Pritesh Chheda
So basically we will see the H1 also on a higher growth note. Unlike last year FY25 where your entire growth came in quarter four. Is it possible that this time around the growth will be evenly spread in the whole year?
Ramesh Chandra Mansukhani
We hope and we expected the growth will continue in all the quarters.
Pritesh Chheda
Okay, and my last question is this 12% top line growth. What is the corresponding volume growth?
Ramesh Chandra Mansukhani
Corresponding volume growth. If I estimate my steel price to be stable as current year rate, this growth will come from the volume growth only.
Pritesh Chheda
Now I am asking for FY25 the year gone by. What was the volume growth?
Ramesh Chandra Mansukhani
2525 also there is a growth and 2526 will be also growth in quantum as well as the volume amount also.
Pritesh Chheda
Okay. Yeah.
Sandeep Kumar
Thank you.
operator
Thank you. The next question is from the line of Dhananjay Mishra from Sunidi Securities. You may proceed.
Dhananjay Mishra
Hello sir. Am I audible hello fro.
operator
Yes, you are the boo.
Dhananjay Mishra
Yeah, so congrats on good results. So just wanted to know what how this accounting treatment has happened for real estate business. Like in this quarter we have. You have shown 368 crore revenue and 45 crore a bit. So this is for 30% of our portion of area. We would have sold in FY25 or F and the 74 upfront money we have received where it is reflecting.
Ramesh Chandra Mansukhani
No, not I would.
Sandeep Kumar
I will. I will take this question. This the deal which we have announced on 31st of March there was a assignment of the land which we had with us and the certain CW CIP for this sale which we have accounted as on 31st March 25th is part of that value. The 30% which we are expecting further will be forthcoming in next five to six years.
Dhananjay Mishra
Okay. So this kind of revenue will not reflect in future. We only have this our share of as you said 700 crore. We are expecting over four or five. Years
Sandeep Kumar
will be expected as a revenue and profit which every income over the period of five to six years every year around average 100 to 120 crore. Will be coming to our CMS
Ramesh Chandra Mansukhani
monetizing will will continue.
Dhananjay Mishra
Okay. Because we have received 70. 70 crore and we have shown 45 crore as a bit so. And and you also said that.
Sandeep Kumar
There. Is a no relation. Actually this EB etc is the power pipe business date Marino was a non core business which we sold out. Right? Sold out. We got 70 crore advance and the balance we will get 700 crore by way of 30% share in the property. That revenue will be additional revenue for coming years for the company.
Dhananjay Mishra
Okay. Okay.
Sandeep Kumar
Yeah. And. That will be the net receipt for by the company in coming 4, 5.
Dhananjay Mishra
You said that from FY26 onwards we will have 80 crore 100 crore cash. Flow from
Sandeep Kumar
FY26 or road. This will continue receipt of the profit you can say.
Dhananjay Mishra
And we will have not no expenses and not even marketing cost.
Sandeep Kumar
Not our developer will pay everything. He paid everything. The work is started.
Dhananjay Mishra
Okay. Because they will be selling our flats. They will not charge marketing cost for that.
Sandeep Kumar
We are not going to be at any marketing cost in it is on the account of the developer.
Dhananjay Mishra
Okay. And secondly for this Saudi Capex what is the status of this dead tied up debt?
Sandeep Kumar
We are working with the bank. Total total budget is 600 crore. 400 crore is our debt portion. And we are the final stage of freezing the bank.
Ramesh Chandra Mansukhani
In principal letter we got it.
Sandeep Kumar
Yeah, in principal letter we already.
Dhananjay Mishra
And lastly in the presentation we have shown this breakup of this 70% 30% funding through debt and equity. And already Capex incurred like in case of stainless steel we have. We have shown 1.56 billion already incurred and 2.82 billion are committed. So what is the risk committed and Capex incurred? Figure difference. What is the difference? Hello. Hello.
operator
So just a moment. We’ll try reaching the management. Just a moment. Sa. We have the lines connected to the management. So you may proceed.
Dhananjay Mishra
Hello. My question is that in stainless steel pipe total project cost will be 564 crore. And we have incurred about 5156 crore. And there is one more item mentioned 282 crore committed. So what is 282 crore committed in this slide.
Sandeep Kumar
Total our project is 554 crore. Correctly you have mentioned we have spent almost 2 crore on this project. Balance is committed where we have a place order for the machinery. LC opened and machinery are getting.
Dhananjay Mishra
Okay. Okay. Got it. Got it. Okay. Thank you. Thank you. That is all for my.
operator
Thank you. The next question is from the line of Darshal Pandya from Pinterest Capital. You may proceed.
Darshil Pandya
Hello. Can you hear me?
Sandeep Kumar
Yes, yes, we can hear you.
Darshil Pandya
Yes sir. Good evening. Sir, my question is related to cash flow statement. So kindly. We have you know reported 300 crores of EBITDA. But if you see on the operating cash flow side you just around 68 crores which is you know primarily driven by receivables, inventories. Obviously you know it is offset by payables. But could you help us understand what’s driving this stretch? Is it something to you know, a specific business cycle or a structural shift? What is it?
Sandeep Kumar
Only the project which we are currently executing that has inventory which is getting ready and getting shipped in next quarter. That is the only reason of inventory buildup. It is project specific. As our business is very quietly we make inventory only for the project specific. And all these will be shipped. And this current next quarter, which current quarter we are running inventory and debtors both will be neutralized.
Darshil Pandya
And sir, out of 1100 crores I just you know forgot to understand how much have we totally incurred till date.
Sandeep Kumar
We have incurred almost both the projects.
Darshil Pandya
250 crores.
Sandeep Kumar
Yeah. And balance is our commitment on LC and order placement.
Darshil Pandya
Okay. And we had some, you know plans to even raise funds. When, when, when when is this expectation or any. Any time I did.
Ramesh Chandra Mansukhani
No comment
Sandeep Kumar
and we will not comment on that.
Darshil Pandya
Okay, thank you. Thank you so much.
operator
Thank you. The next question is from the line of Raman KV from Sequent Investment. You may proceed.
Raman KV
Hello sir, can you hear me?
Sandeep Kumar
Yes, we can hear.
Raman KV
So I just have two questions that I just asked. I. I just want to understand the. 368Crores entry with respect to the revenue from real estate seg. Like you said that there was 70cr upfront payment. I got that part. So where did the additional 290 crores come from?
Sandeep Kumar
You’re talking about our Marina shelter translation, right?
Raman KV
The revenue from real estate sector. Yeah,
Sandeep Kumar
we have. I think I replied this question just now previously. Yes, yes, I will. I will reply you the total land and the seaweed in the Marino shelter. Since we have assigned the land right to the developer that Property item has been sold and book as a revenue and against that sale we have received 70 crore upfront.
Raman KV
So you got against the sale of land, right? You got 70cr right?
Sandeep Kumar
We know. I will repeat my statement again. We have the lease land available with us and CWIP which was part of the construction that has been assigned to the developer. And total value of the transaction as per the government guidelines is 368 which we have booked as a sales revenue in our books. Now 70 crore we have cash against that deal which we have received. Balance is expected in next six years from the sale of the development.
Raman KV
Okay. Okay. Yeah I understood now sir. Thank you. And my second question is with respect to the guidance which you gave. So I just want to understand. With. Respect to you know standalone how much. Business can we do in FY26, 20. And 27 and in FY26 how much incremental revenue is contributed through the subsidy and upcoming capex?
Sandeep Kumar
As already informed this time around our 90%. 90% revenue is coming from standalone out of 3500 crore turnover. Current year around 3200 crore was our PI business and then rest of the real estate etc. We are expecting 2020 5% growth as a standalone should cover reach around 4000 crore as we gas expected. And the balance will come from the consolidated from this property Jammu and from Saudi that will become in the consolidation.
Raman KV
So 4000cr with respect to standalone in FY26 or 2726.
Sandeep Kumar
In 26.
Raman KV
Okay sir. Thank you.
operator
Thank you. The next question is from the line of Raghav Rathi from Condom holdings. You may proceed.
Raghav Rathi
Good evening sir. Like my question is regarding the interest cost that we have showed. So the interest cost is around 100 crores to us. And how much of the interest is towards the new project that we are taking around 800 crores of debt. How much of that has been used up and what can be our interest cost after we have used the entire debt.
Sandeep Kumar
So I will reply this question. The total interest cost for the year has gone up from last year. Because we are taking high executive purchase are going on for which we have given guarantee. We have used non fund based limit. So once we keep our use non fund based limit in that case we have to keep deposit with the bank. So if you look at that my income has also gone little higher from the bank interest income because I have to keep margin there. So this amount is getting nullified from the income side as external.
If I talk about
Raghav Rathi
so around around 14 crores that we had received interest. Income
Sandeep Kumar
and also the new project which we are talking about since the project are still under the implementation stage Their interest cost will be appeared in the financial in the next year Currently it is part of the C logo IP Civic Capex
Raghav Rathi
okay.
operator
Thank you. The next question is from the line of Arpit Tapadia from IGE family office. You may proceed
Arpit Tapadia
yeah, hi. Thank you so much for the opportunity. And congratulations on good set of number can you throw some light over the EBITDA per ton incurred during this quarter over hsiw LSIW and ERW separately.
Sandeep Kumar
In. Our business since we are into specialized product where we supply product to the customer with different type of coating with a high value coating we don’t monitor EBITDA per ton and it is not comparable because every order is different depend on the specialized coating which customer is asking and we have been providing. Like our coating is a 3LP CWC FB and different kind of pipe Different Diaz Very difficult. You can see the overall overall EBITDA which is approximately 11% right?
Arpit Tapadia
Yes, got it. Pardon my ignorance how much CAPEX of the south plants has been already incurred?
Sandeep Kumar
Saudi Rio spent hardly anything hardly five to but we have a huge commitment against the orders for equipment and machinery placed.
Arpit Tapadia
Got it and how soon we are expecting it to commercialize?
Sandeep Kumar
Land development is already done and construction activities are going to start so quickly under approval and the equipments we have that’s why it will come in during. This year.
Arpit Tapadia
Okay and what kind of asset terms we are expecting from the Jammu as well as how the plans.
Sandeep Kumar
Already inform around 600 crore total capex.
Arpit Tapadia
So the 550s can you?
Sandeep Kumar
Yeah.
Arpit Tapadia
What about asset terms? That is the level of investment we we want to put in what kind of revenue we will be in between what is the potential of the revenue from those plants?
Ramesh Chandra Mansukhani
This is actually the revenue will come in the full force once the plant Is opened around 2500 crore once a full fledged and this Jammu will be thousand between thousand to twelve hundred crore.
Sandeep Kumar
At the full capacity running.
Arpit Tapadia
At full. Capacity thousand to twelve hundred from Jammu and 2500 from Saudi.
Sandeep Kumar
Full fledged around. 2000 crore
Arpit Tapadia
both combined together no, no.
Sandeep Kumar
I will repeat again Saudi will be around 2,000 crore full revenue at full capacity utilization Saudi will be thousand of Jammu will be thousand to twelve hundred crore at the full capacity utilization.
Arpit Tapadia
Got it and how do we expect. To ramp up those plants after commercialization?
Ramesh Chandra Mansukhani
In two years we are going to get the good fruits.
Sandeep Kumar
Roughly in two years period we will be able to. Achieve the optimum optimization.
Arpit Tapadia
Okay that’s it. From my side. I’ll rejoin the queue for any further question. Thank you.
operator
Thank you. The next question is from the line of Tawan Shah from Alpha Cured Advisories. You may proceed.
Tawan Shah
My question is on the revenue side. I think you mentioned that in FY26 the standalone business can do roughly 4000 crores of revenue. But our order book right now is 2500 crore. So are we in the final stage of negotiation of any big order which may come maybe next one or two months.
Sandeep Kumar
Our bid book is around 15,000 crores and we have some negotiations going on. And normally this order book which I am telling is only as on April we have full year ahead and definitely we are at the final negotiation of some good orders which once we receive we will be announcing that.
Tawan Shah
I’m asking this, I am asking this because you know if I look at the order book of since last 2 3/4 is already declining. It was earlier 323300 crore then 2800 crore and then 2500 crore.
Sandeep Kumar
No, I would more clarify. There is not a right indications and every project is having evaluation process. It takes time and we are very much confident to improve upon the order book position very soon. Because there is not a any barometer to gauge so many addresses coming in one quarter. The second quarter will be very less. It is not a right barometer for the market for this project because this project is. And we are mostly in export business so this kind of things always happens.
Tawan Shah
But are we sure that we the. Big size order like we received last. Time, roughly 1800 odd crore. That kind of big order can Also come
Sandeep Kumar
why 1800? Maybe, maybe more. Also why you are directly calculating 2500 plus 1800. No, no, no, no. This is not the way. Maybe much more. I don’t know this moment but we cannot say on this forum. But yes, good order book, good bid book. We are confident to achieve it. And it is a rolling process. Every quarter we get order, every quarter we execute. So if. If I have always order for six months for 2500 it will be around 5000 crore order for a year maybe. But every rolling process where every time we are getting order and we are executing order every quarter.
Tawan Shah
Understood. And sir, in ERW I think you mentioned that 10 percentage of the revenue came from the ERW for the full year. Can you say how much is the overall volumes for FY25 from ERW set.
Sandeep Kumar
Around this more than 350 crore as we indicated 10%. And we hope to continue with grow this current year. Also because after initial problems of the accreditations now we got a lot of accreditations including API and some more complex accreditations. And we got some orders from on export front with a better value addition. And we are going ahead in that direction. And we are hopefully to get the more capacity utilizations.
Tawan Shah
350 crore is absolute number in terms of volumes. How much approximately many in volume terms. In terms of matrix.
Sandeep Kumar
I do not have the term. I hear the only rupees volume this moment. That’s why I am giving the rupees figure the turn off.
Tawan Shah
Okay. Okay sir. Thank you. That’s all from my side.
operator
Thank you. The next question is from the line of Prabhu Jain from SM Holdings. You may proceed.
Prabhu Jain
Yes sir. Hi sir. I remember. I think. I think in the Q1 or Q2 con call you mentioned that you have ventured into green hydrogen pipeline. And you’ve got approval from you eu, European Union as well.
Sandeep Kumar
Yes sir, you are right.
Prabhu Jain
Sir, I just want to understand where we stand here. Do we have any significant projects here? In terms of your big pipeline has something converted into actual project?
Sandeep Kumar
We got the compatibility to produce the pipe of hydrogen but not any project come out in India this moment. Regarding export front, we are working in the few countries but still it is a nascent stage and it is a future. But I can’t say this moment may be six months, one year maybe bunch of projects will come in future. That’s why as a proactive company we got the approvals and we are ready.
Prabhu Jain
Okay. Okay. Sir, another question. Sir. So you mentioned that your Jammu plan can do a top line of thousand to twelve hundred crores at full capacity. And Saudi can do two thousand at full capacity, right?
Sandeep Kumar
Yes sir. Thousand, two thousand and. Twenty.
Prabhu Jain
Yeah. So I mean going by this and currently you are doing a top line of 3500. So if I add this 3500 and 2000. So maximum top line that you can have with all of the infrastructure 1, 1 check commercialization Q3FY26 would be 8,000 crores, right?
Sandeep Kumar
No, I will again correct it. This number which we are given is. At the full capacity within two years. Which is a timeline of two year. Because our commercial production will start in Q3 FY26 and it will take time to ramp up the. So you are right. The time reach full capacity in India, Jammu and Saudi we will be reaching those numbers which you are adding.
Ramesh Chandra Mansukhani
Yes,
Prabhu Jain
correct. Correct. So that is what I meant. I think once you ramp up because obviously Q3 you will be starting there Will be some teething issues. So once it. It is at a very optimum or I would say at a capacity utilization 90%. You can do 8,000 at the top line level. Right? Real estate revenue separate.
Sandeep Kumar
It’s a good wish actually. And we are working the towards direction. Although whatever you are saying it should be. But we are a conservative company. That’s why we do not announce it. But whatever you are saying as per the calculation, you are right.
Prabhu Jain
Yes. So sir, just wanted because I I listened to your interview also it was very good. Today morning you mentioned that this year you’ll be doing conservatively. You mentioned specifically you can do 20% this year and next year. It is interesting you said that we can also do 100%. So I mean how should we read. Into that
Sandeep Kumar
whatever you are saying. My. I am saying the both are the same thing. The next year means 2627.
Prabhu Jain
2627.
Sandeep Kumar
Yeah. There is a two year. So there will be two growth. One will be for year. This one which we are aiming 20% conservative. Then another group on the top update then I think so our estimation and whatever you are saying is going to match.
Prabhu Jain
Okay. And. And sir, just to. Just to top it up on. On this part. Because currently we have an order book of I think 2500 cr and so I am expecting that obviously some order will flow in this year. But for FY27 since you are operationalizing these two plants, Jammu and Saudi. Do you have any pre commitments at the order level? Because I mean that is where we get the confidence that FY27 is going to be better than FY26, right?
Ramesh Chandra Mansukhani
Yes, there are some pre commitment over there. But still it is a very premature to announce this moment. Let’s start them production and then there will be more formalized will be much better the initial because we are in same market. We know, but it is premature to say something in this moment.
Prabhu Jain
I understand sir, one last question. Once you operation because CAPEX till the commissioning of the facilities is sorted. But once you operationalize it, Would you be requiring any significant capital for working capital or something else or you will manage internally approvals?
Ramesh Chandra Mansukhani
No, no. Working capital will be separately assessed by our banks on the right time before few months of the production, maybe three, four months. Our banks in principle agreed to support. And we are very confident to arrange the working capital limits.
Prabhu Jain
Okay, great, great. Sir, one final piece. Sir, you have pledge. Pledge Any plans of reduction or increasing Anything?
Sandeep Kumar
This woman. No comment regarding what pledge?
Prabhu Jain
Stock pledge. The equities,
Ramesh Chandra Mansukhani
our stock plays. No, no, no. No, nothing.
Sandeep Kumar
Nothing.
Prabhu Jain
Okay, sir. Great. Thanks. I will get back.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask the question. The next question is from the line of Anil Jain from Equipassion Capital. You may proceed.
Anil Jain
Yes, sir. Good evening. Yeah, I wanted to know the volume volume numbers of FY25 and by 24.
Ramesh Chandra Mansukhani
Volume number. We do not know. This moment we are working and that and then we will communicate separately. This moment we do not have the right figure. Different. Different.
Anil Jain
Okay. Or else can you share the capacity utilization.
Ramesh Chandra Mansukhani
Product mix basis this time we are some. Some plant. We have five plants. You can say three plants are fully busy.
Anil Jain
Okay.
Ramesh Chandra Mansukhani
And two plant is partly busy. Depending on which dia, which kind of pipe island, gas, water. A lot of calculations, sir.
Anil Jain
I understand. So can I know or the at the present product mix what is the total revenue potential from the the existing plants?
Sandeep Kumar
All is existing plants. Only new capacity will be adding up in current finance.
Anil Jain
Yeah, I know that. I understand. But I wanted to know the total revenue potential from the present capacity which we have already have.
Sandeep Kumar
Yeah. Okay. Potential potential. Sir, if not increase the capacity we can go more than 5,000 crore in the existing without putting any capex. Without putting any much more efforts. Except marketing combination of the product mix should be in our favor. You know which is no.1 in no one’s hands. Yeah.
Anil Jain
So like you are already projecting 4000 crore of top line in FY26 and we add 20 growth it comes to 5000 for FY27 from the present like capacity. Right. So what are your Capex plan?
Sandeep Kumar
No Capex in existing. Only Capex in Jammu which is going on and Saudi.
Anil Jain
Okay,
Sandeep Kumar
which is
Anil Jain
okay.
Sandeep Kumar
So no new announcement, nothing. Only this. Whatever. We have taken the job on hand. First we have to complete it.
Anil Jain
Okay,
Sandeep Kumar
maybe. Maybe small capital expenditure as a routine expenditure will continue.
Ramesh Chandra Mansukhani
That is around 2530 crore capacity.
Sandeep Kumar
Maybe upgradation of the plant and more modernization. Etc.
Anil Jain
Okay sir. Thank you. That’s it.
Sandeep Kumar
Thank you very much.
operator
Thank you. The next question is from the line of Kushal from an individual investor.
Kushal
Yeah. Hi sir. Thank you for the opportunity. So I want to understand the order book pipeline of 15,000 crores. How much of it is export?
Ramesh Chandra Mansukhani
My order book is as of now is 2500 crore.
Kushal
No, no. The order book pipeline of 15,000 crores. How much of it is export?
Ramesh Chandra Mansukhani
You can say very safe side. Between 80 to 90% is international. Because we are a international accredited company. Of the approvals were with us 25 countries. That’s why our aim is 80% out of 15,000. Maybe 12, 13,000. Maybe export. Maybe thousand. 2000 crore in India.
Kushal
Okay. So 80% is export out of the 15,000 crores of order. Order pipeline.
Ramesh Chandra Mansukhani
Yes.
Kushal
And sir, do we do any work for Jal Jeevan mission?
Sandeep Kumar
We are part of Jaljun mission. We are doing in India. Our water segment is very small. Water segment is our hardly 10% above the revenue. We have to see the flow of the money from the government. Accordingly we can improve the our contribution to those jal jeevan. Right now we are doing at 10% roughly.
Kushal
Okay sir. And lastly on this. On this accounting entry with respect to the Marino shelters. 300 crores. Around 300 crores was added to the top line. Am I right?
Sandeep Kumar
Yes, sir. Mr. Garg is the right person to reply it.
Rahul Rawat
Yes please.
Kushal
Sir, around 300 crores. How much was the amount added to the top line?
368 crores. So. And were there any expenses attached to this? 368 crores.
Rahul Rawat
Yes.
Kushal
Hello.
Rahul Rawat
Yes. Yes. Slight slide. Slight expenses.
Kushal
Okay. So it’s. Most of it is percolated down to the bottom line.
Rahul Rawat
I will say total if you. I think somebody asked a question to me earlier.
Kushal
Yeah. It’s a little confusing. So can you explain this again? I’m sorry but yeah.
Rahul Rawat
There are certain cost of the land assigned CWIP which has gone into cost of the PNL and EBITDA is around 40 crore. From that business.
Kushal
Okay. Only 40 crores has. Has translated down okay to EBITDA. Rest of the EBITDA that means of. Of 150 crores is from the pipes business. And sir, one more question.
Rahul Rawat
Plus
Kushal
okay. For the year you’re seeing for the. Full year
Sandeep Kumar
my EBITDA from the core business is 328 crore. 328 and console label is 353 crore.
Kushal
Yeah. That’s for the full year, right? You’re talking about the full year. Yeah. Okay. And sir, how do the raw material prices affect us? How? Our margins have been pretty consistent over the last 45 years. But how do raw material prices affect us? Like say for example if one quarter raw material prices were to shoot up. So how does it have an effect on us? And with what kind of lag our.
Sandeep Kumar
Business is that Once we get a order confirmation same time we get raw material rate also freeze and confirm and hedged. So any fluctuation in the raw material prices doesn’t affect our project and project profitability.
Kushal
Okay, so you are confident of maintaining this 8 to 10% of of operating margin going forward.
Sandeep Kumar
As soon as the order confirms, my customer confirmed with the price. I get my raw bull price also confirmed with my supplier. So that protect my profit margins and profitability is protected.
Kushal
Okay. But sir, this. This. This is little confusing. Out of the 368crores only 40crores has translated to EBITDA. So whereas the other 228 gone. Like what was the major chunk?
Sandeep Kumar
It was the cost which has been incurred over the period in the project.
Rahul Rawat
Work in progress.
Sandeep Kumar
Capital work in progress. Construction and cost of the lease. Other expenses.
Kushal
So in the. In the balance sheet, where was it standing for all these years?
Ramesh Chandra Mansukhani
Yes.
Sandeep Kumar
Yes, yes, yes.
Kushal
There was it. In which line? In which item was it in the balance sheet?
Sandeep Kumar
He’s a part of. Part of the inventory. Capital
Kushal
was inventory. So you have written it off against that 368 crores. Around 220 crores. You’ve written it off.
Sandeep Kumar
No. Repeat what you ask.
Kushal
No. So I’m just trying to understand the accounting rules. There’s some confusion. 368 crores went to sales. And the 228 crores you’re saying went to some expenses. And 40 crores was EBITDA. So in the balance sheet where was the 228 crores showing.
Ramesh Chandra Mansukhani
Total car. Since I told you the total profit is 40 crore around.
Kushal
Okay.
Ramesh Chandra Mansukhani
Value has gone into expenses which was part of my inventory which I was accounting as CWIP and construction cost and other expenses.
Kushal
So. So that’s one thing. So see CWIP should have gone down, right. But CWIP from year on year has gone up.
Ramesh Chandra Mansukhani
No. It has been completely removed. Value is zero. Now everything has been sold in merino shelter.
Kushal
Okay, that is a new. Okay. That is a new CWIP that is going on. Okay. The Saudi plant and the. Understood. Understood. Understood. So now for the. For the remaining 5, 6 years we will show more revenues of around 350 crores roundabout.
Ramesh Chandra Mansukhani
No, no, no, no. Our projections roughly is around 700 crore from the projects.
Kushal
Okay.
Ramesh Chandra Mansukhani
20, 26, 27, 28, 29, 30 next five years. Every year we are. We are seeing 80 to 100 crore revenue every year will be there.
Kushal
So then that makes the total saleable value as a 368 plus 500 crores. Right. So that is upwards of. Okay.
Ramesh Chandra Mansukhani
How 700 crore revenue will be going book in coming years. That will be the no expenses from our site.
Kushal
So that we separate from this 368crores.
Sandeep Kumar
Yes. That is in addition to that.
Ramesh Chandra Mansukhani
Yes. Yes. Now you got it.
Kushal
So. So. So the total sellable this thing is 6. 6. 368 plus 700. Is that the right way to understand.
Ramesh Chandra Mansukhani
Is our expected revenue over the next six years and360.868 is already booked. Booked.
Kushal
Okay. 368 is already booked. So this is the accounting entry. Now in terms of cash flow we have received only 45 crores from the developer.
Sandeep Kumar
We have received 70 crores from the developer. So far up front and we.
Kushal
Okay.
Sandeep Kumar
Balance amount is receivable. As the sales will happen. We’ll be receiving those funds from the.
Ramesh Chandra Mansukhani
Every year the sale will come. But no swip, no expenses.
Sandeep Kumar
No expenses.
Kushal
So the sale that we booked. Sir, I think I’ll take it offline. Actually I’ll take this offline because it’s a little confusing. So I’ll get in touch with the IR and get in touch with you. I’ll do that.
Ramesh Chandra Mansukhani
My ir. Mr. Vijay. And if you have any question we can reply you offline.
Kushal
Yeah. Valerim is the I. So I’ll get in touch with you. Because I’m a little confused. Okay. Thank you. Sorry to take your time. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of Radha from BNK securities. You may proceed.
Radha Agarwalla
Hi sir. Thank you for the opportunity. So I wanted to know the key geography where we are exporting each of the pipes separately. If you could mention for Elsa and erw.
Ramesh Chandra Mansukhani
Yes madam. Can you. What is your question? Can you repeat it please?
Radha Agarwalla
Yes sir. I want to know the key geographies wherein we are exporting for each of the pipes separately and erw.
Ramesh Chandra Mansukhani
Yes sir. It cannot be mixed. Every segment is different. And every uses also different. For island get separate and for water and non critical uses are different.
Sandeep Kumar
Geographical. We are Mena area is our biggest customer. Which consists of North Africa and Gulf and Saudi. These are the biggest consumers. Our biggest customer. But we export to other area also. Just like currently we are executing a big order for the Far East. We supply our pipe to part of Canada. Other part of the world. Also Europe. Also Europe, Canada. But those volumes major business come from Mena and Fari.
Radha Agarwalla
So is it safe to assume that 80% of the 90% exports would be done to Mena region?
Ramesh Chandra Mansukhani
No, no, no, no, no. It depends on project, depend on project. And we cannot say. Agraphy always changes our projects in 25 countries. Including forest, Asia, Mena region. That’s why we see where the more projects are coming. The geography can be changed. But 70, 80% export is your objective, our aim which we are achieving.
Radha Agarwalla
Could you give us some light in terms of is there any tariff on either of these products that we are exporting on the current tariff scenario in these regions in our export market.
Ramesh Chandra Mansukhani
They are not in the USA and there is a no tariff impact and mostly island gas segment covered by government buyer. Most of the countries the tariff is not going to make any impact. Not on us Here.
Sandeep Kumar
I would. I’d like to add something here that trump government. Whatever tariff they have put in us is going to benefit manufacturer from India. Because they will become at par with supplier from other countries. So it opens a door opportunity for Indian manufacturers to export to us. Because they become at par with the other country where the they will have a duty free export.
Radha Agarwalla
So currently we are not exporting to us. And if in case there is any tariff situation. I think it would be a favorable situation for the company.
Sandeep Kumar
Yes, it will be better position for us.
Radha Agarwalla
So what is the tariff rate? The current situation that US and Europe are imposing on Elsa And Elsa.
Sandeep Kumar
There’s no exposure to us. There’s no exposure to us.
Radha Agarwalla
Not for the company, sir. For the industry.
Sandeep Kumar
Sorry.
Radha Agarwalla
For the industry, sir.
Sandeep Kumar
They cannot comment on.
Radha Agarwalla
Just to understand the potential.
Sandeep Kumar
Very very few. Okay madam, anything.
Radha Agarwalla
Okay. Okay. S.
operator
Thank you. The next question is from the line of Dashalpanya from Fintrus Capital. You may proceed.
Darshil Pandya
From the previous call of Q3 additionally of above. You know 4000 crore which you are targeting. 1500 crore additionally is what something we are targeting, right?
Ramesh Chandra Mansukhani
No, 4,000 is our goal.
Darshil Pandya
Hello. Hello.
Ramesh Chandra Mansukhani
Yeah, what is your question? Can you once again repeat it please?
Darshil Pandya
Sir, in the last call we did mention that you know we are looking at around,500 crores of additional revenues once this capacities are coming live.
Sandeep Kumar
You are talking about Jammu and Saudi capacities.
Darshil Pandya
Yes sir. Yes sir. Yes sir.
Sandeep Kumar
That capacity will be operational from Q3 of current year. And they will also contribute. Last time we have told given some number. But definitely we are hoping working towards to achieve those numbers.
Darshil Pandya
Okay, got it. Thank you. Thank you so much. Thank you so much.
operator
Thank you. The next question is from the line of Arvind, an individual investor. You may proceed.
Arvind
Hello. Hello. Congratulations for good set of numbers.
Ramesh Chandra Mansukhani
Thank you Sir.
Arvind
I have two, three questions. Is there any dividend declaration this year for FY25?
Sandeep Kumar
No, we are not now in future. I don’t know. Currently a board has not proposed any dividend distribution. Currently.
Ramesh Chandra Mansukhani
Currently in this balance sheet no. But in future.
Sandeep Kumar
And the reason being we are into expansion mode. So we want to reinvest the profit into our capacity.
Arvind
Okay. And one more question sir regarding this. Is there any update regarding the man infrastructure? What is man infra the old issue that and there is a There is no update from company yet so I’m eager to listen for about it.
Ramesh Chandra Mansukhani
No, no. That is method. It’s subsidies and that’s why we do not want to comment particular particular subject. We do not know you are talking overall you’re talking any specific and that’s why there is a matter of subsidies. But there is a separate company and we are separate. There is no impact on this company whatever they are.
Arvind
There. No moment in few years. Regarding this. Okay. Okay. Thank you sir. Thank you.
operator
Thank you. Due to time constraint. That was the last question. I now hand the conference over to the management for closing comments.
Ramesh Chandra Mansukhani
Thanks. Thanks a lot all good listeners and to all the arrangers and to make the successful discussion. Thank you. Thank you once again.
operator
On behalf of ICICI Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Yeah.