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00:00 Nikhil Bansukhani Johnson to talk about the numbers and the outlook ahead.

00:03 Nikhil, good having you. Thanks for joining in and taking the time out. Wonder why,

00:07 what happened in quarter four and relative to the expectations of the street,

00:15 the small miss there. Is there a specific reason for the same? Anything that happened in quarter

00:20 four? And how is the immediate quarter looking like? Let's start with that first.

00:25 So, hi, good morning, Neeraj. Yes, a little bit of a miss in quarter four, but overall,

00:32 the yearly targets were achieved. We did almost a 40% growth this year from last year. Majority

00:39 of this quarter was done, the water business was there and that's why a slight bit of a miss on the

00:46 quarter. But like I said, that we looked upon more on the yearly basis. So, overall in the year,

00:51 we've done quite well. And looking forward, the quarter one is quite strong. And quarter two and

00:58 three are even stronger with more export booked. The unexecuted order book is almost at 21-2200

01:04 crores currently. And this year, we're looking also at a growth of almost 20-25% from almost

01:11 3000 crores. So, the earlier belief was that you could not, I mean, I think in a conversation,

01:19 a couple of conversations that we had with Mr. Raman Sukhani, the numbers that were spoken about

01:26 on the back of new plant coming in, orders, etc., were fairly, for lack of a better word,

01:33 stratospheric. I'm just trying to understand 20-25% in FY25 means that you're a very tall

01:39 order in FY26 in order to reach the guidance that was given earlier. So, is that on track

01:45 or are you revising that downwards? No, no, that's on track. The reason is because

01:50 both the projects which are ongoing are on track. And that's why 25-26 is farmer bullish. And 24-25,

02:00 this year also, we had given a guidance of 2800 to 3000 crores, which we've achieved more than that.

02:05 The current year also, the target which we're giving between 3600 to 3800 crores, we should be

02:11 achieving that because we have a strong order book. Also, we are L1 in quite a few new projects.

02:17 So, that way, the company is doing well. 26 definitely will be a much larger turnaround

02:24 for the company with both the projects coming live and the turnover kicking in and the EBITDA

02:30 also starting to go up, looking at the locations and the businesses. So, we are quite bullish on

02:36 that and we're going to achieve the targets that we're coming to. So, from earlier EBITDA levels

02:43 of about 10-odd percent, 2020-2021, you slid down a little bit, you come back to what, 8-odd percent,

02:49 you reckon double-digit EBITDA margins is a possibility in FY25 or do we see that in FY26?

02:54 No, in FY25, we should be at EBITDA with the business we've got around 10%.

02:59 26 onward, we will be hitting 12 and so forth, 12 to 13 to 14% in the next three years.

03:07 Wow. If you do 13%, that was a number that you probably last clocked in 2013 or FY13,

03:15 if I'm not wrong, Nikhil. So, in that sense, kudos there. What about the expansion plans?

03:20 Are they coming on stream? Because there's a lot of talk around how a lot of expansion projects

03:26 are getting delayed, especially because of the supply chain uncertainties in the first quarter.

03:30 No, both the projects are absolutely on track. In fact, good progress is happening and we're

03:39 more than confident to achieve the timely construction and starting the commercial

03:44 production for both the projects. Okay. Nikhil, what about order booking

03:47 right now? One, what is the current order backlog? And I reckon that with the new plans,

03:54 you get into a trajectory or a market which is different than what you have existing,

04:00 or even currently you are diversifying away from what has been the traditional stronghold?

04:04 So, it's a mix of both. It's our strength, which is our LSO, we are doing that as well. We are

04:12 expanding in that as well, as well as the stainless steel market, which is a slightly

04:18 newer market for us. And we are going into it and it's a high margin business. So, it's a mix of

04:24 both, which will help drive the growth of the company. Okay. I believe there has been a bit

04:32 of fundraising activity done, Nikhil, correct me if I'm wrong, if my memory serves me right.

04:36 Is that it? Or would you need to do any further fundraising, equity or debt?

04:40 As of now, we are not doing any more fundraise. We haven't thought about it. We're just right now

04:47 focused on the execution because we have all the financial closures in place for the projects.

04:53 So, currently, no, but maybe in the near future, looking at the post three years,

04:58 two years down the line. But just to round it up, for the expansion plans that are on stream

05:04 right now, you do not require any additional equity fundraise? Correct. Okay, great. Well,

05:11 Nikhil, great having you. Thank you so much for taking the time out and being with us and all the

05:14 best for the year ahead. Thank you. That's Mann Industries with their thoughts on the numbers and

05:19 the margins going at it.

Man Industries' Outlook For FY25 | NDTV Profit

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