Manaksia Coated Metals & Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Installed capacity for Alu-Zinc Coated Steel: 1,80,000 MTPA with Q1 FY27 utilization at 62.09%
  • Installed capacity for Pre-Painted Steel: 86,000 MTPA with Q1 FY27 utilization at 95.39%
  • Serving 240+ active customers across 20+ Indian states and over 22 countries worldwide
  • Strategic plant location in Kutch, Gujarat (~50 km from Kandla/Mundra ports) enabling low logistics cost

Key drivers of operational performance: Robust export demand, improved realizations, successful ramp-up of Aluminium-Zinc product portfolio, and operational efficiencies

Segment-wise Performance

  • Pre-Painted Steel: Emerged as robust performer, reducing dependence on Alu-Zinc/Galvanised steel products
  • Export business: 87% of current order book (₹365 Cr out of ₹420 Cr total order book)
  • Domestic business: 13% of current order book (₹55 Cr)

Explanation of significant changes in segment performance: Company successfully shifted focus towards achieving higher volume of Pre-painted Steel products (more value added) in the past 2-3 years

Financial Highlights

Revenue: ₹262.14 Cr (Q1 FY27)

EBITDA: ₹29.09 Cr (Q1 FY27)

PAT: ₹14.10 Cr (Q1 FY27)

EPS: ₹1.32 (Q1 FY27)

Margins: EBITDA margin of 11.09% (Q1 FY27), PAT margin of 5.36% (Q1 FY27)

YoY/QoQ comparison:

  • Total Income: ₹263.07 Cr in Q1 FY27 vs ₹228.75 Cr in Q4 FY26 (15% QoQ growth) vs ₹253.94 Cr in Q1 FY26 (4% YoY growth)
  • EBITDA: ₹29.09 Cr in Q1 FY27 vs ₹15.64 Cr in Q4 FY26 (86% QoQ growth) vs ₹28.62 Cr in Q1 FY26 (2% YoY growth)
  • PAT: ₹14.10 Cr in Q1 FY27 vs ₹5.37 Cr in Q4 FY26 (163% QoQ growth) vs ₹14.01 Cr in Q1 FY26 (1% YoY growth)

Drivers of financial performance: Higher revenue growth, improved product mix, operational efficiencies, and favorable export demand

Key Risks: Elevated raw material and freight costs during the quarter

Geographical Revenue Split

Domestic vs Export Revenue:

  • Export focus with 87% of current order book (₹365 Cr)
  • Domestic: 13% of current order book (₹55 Cr)

Regional Breakdown: Diversified presence across 20+ international markets (Europe, South America, Africa)

Balance Sheet Snapshot

Net Debt/Equity: 1.12x (FY26)

Reserves: ₹338.38 Cr (FY26)

Net Worth: ₹348.96 Cr (FY26)

Financial Health Insights: Significant deleveraging with net debt halved in 3 years, strong cash position of ₹33.91 Cr (FY26)

Capex & Cash Flow Health

Capital Expenditure: ₹200 Cr planned for Cold Rolling Mill complex by FY28; ₹30 Cr for 7 MW solar plant

Free Cash Flow: Not Specified

Operating Cash Flow: ₹(-8.88) Cr (FY26)

Net Debt Movement: Reduced significantly over 3 years

Investment Rationale: Focus on capacity expansion, backward integration, and technology upgrades

Strategic & R&D Initiatives

Investments in Innovation: Technology-driven quality excellence, transition from galvanized steel to Alu-Zinc coated steel with ~3x corrosion resistance

Expected impact on growth: Pre-Painted Steel capacity to be increased 2.7x+ to 236,000 MTPA by Q2 FY27; Alu-Zinc Coating capacity to be doubled to 3,60,000 MTPA by FY28

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through backward integration, improving supply stability

Industry Trends & Business Environment

Macro/Industry Trends: Strong export demand for coated metals products, global quality standards requirements

Impact on Company: Natural hedge against domestic cyclicality, ability to deliver globally competitive products through optimized cost structures

Management Commentary & Growth Outlook

Strategic Outlook: "We remain confident in our growth trajectory, driven by a robust export order book, encouraging customer response to our value-added products, and the timely execution of key expansion projects"

FY Guidance: Vision FY29 of tripling output, revenue, and profitability

Market Share Targets: Not Specified

Risks and Opportunities: Continued focus on premiumization, capacity expansion, and operational excellence

ESG Updates

  • Setting up 7 MW captive solar plant by Q2 FY27 using Dual Axis Tracker technology
  • Expected to reduce power costs by up to 40% (annual savings of up to ₹7 Cr)
  • Lowering carbon footprint through increased use of renewable energy
  • CSR initiatives focused on societal, ecological, and environmental well-being