India: MAN Industries report higher profits on govt infrastructural spending

Pipe maker MAN Industries (India) Limited,  one of the largest players in LSAW (longitudinal submerged arc welding) pipes, spirally welded pipes and coating systems announced its financial results for the quarter ended September 30, 2020 on October 28, 2020.

The company reported more than doubling of its consolidated net profit to INR 27.28 crore for the quarter ended September 30. The company had posted a net profit of INR 10.06 crore during the same quarter a year ago, MAN Industries said in a BSE filing.

Total income grew to INR 595.13 crore during July-September 2020-21 from INR 319.06 crore in the year-ago period. Total expenses stood at INR 560.04 crore during the quarter under review as against INR 304.74 crore a year ago.

Some Key takeaways from the investor’s presentation dated October 28, 2020 are as follows:

• Global upstream capital expenditure, which dropped nearly 45% between 2014 and 2016 is now forecast to rise 6% y-o-y in the medium term
• Demand for large-diameter line pipe in the Middle East is forecast to remain at around 1.5-2.5 Mn t per year up till 2023
• Share of natural gas in the energy mix to increase to 15% by 2030 from 6% now, against the average of 23.4% globally
• INR 1,200 Bn investment planned for city gas network expansion in India and expected to add several thousand more kilometers of steel pipeline

• The Har Ghar Jal Programme under the Jal Jeevan Mission is envisioned to provide safe and adequate drinking water through individual household tap connections by 2024
• The Indian National River Inter-link project is a proposed large-scale civil engineering project that aims to effectively manage water resources by linking Indian rivers by a network of reservoirs and canals

The company shared a positive outlook and expects the total bid pipeline to be around $ 366 Bn.

“The robust performance is despite the uncertainties created by the pandemic. Opportunities in the oil and gas sector remain positive on the back of stabilizing oil prices and revival of projects in domestic as well as export markets,” MAN Industries Chairman R C Mansukhani said in a post-earning statement. “Government focus on water infrastructure projects remains the key driving force in the sector,” Mansukhani added.

The company recently won an INR 370-crore pipe supply order from IHB Pvt Ltd, a joint venture of Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd, for its 2,805-km Kandla-Gorakhpur LPG pipeline project.