Q1 2027 Maharashtra Seamless Ltd Earnings Call Transcript
Key Points
- Order book improved materially by 31% to INR1,709 crores, with 42% from the oil sector and 20% from exports to the US and Canada, indicating higher-margin opportunities.
- Despite lower production due to gas supply disruption, margins were not impacted, showing operational resilience.
- Other income improved significantly to INR175 crores in Q1 FY2027 from an average of INR97 crores per quarter in the previous year, driven by equity market gains.
- PAT improved by 150% to INR271 crores, with EPS at INR20 per share, reflecting strong profitability.
- Exports as a percentage of dispatches rose to 22% in Q1 FY2027 from less than 10% in FY2026, signaling a revival in export demand.
- The company benefits from INR depreciation and a competitor's API license disruption, enhancing its competitive position.
- The Jindal Premium Connections subsidiary has commenced operations and has orders booked till April next year, adding value-added product capabilities.
- Dispatches in Q1 FY2027 were impacted by a disruption in gas supply in April, reducing volumes to 96,000 tons from the usual run rate of 105,000-110,000 tons.
- EBITDA declined by 23% to INR184 crores in Q1 FY2027 compared to Q4 FY2026 due to lower production.
- The finishing line project at Telangana has faced delays, with orders placed but completion still pending, potentially limiting capacity expansion.
- The company has not started the hot mill upgrade at Nagothane, a larger capex project, which may hinder long-term growth.
- The anti-dumping duty on seamless pipes is only temporarily extended until January 2027, with uncertainty about its renewal, which could impact competitiveness.
- The ERW segment's EBITDA per ton declined significantly due to a product mix shift towards lower-margin water sector pipes.
- The company's cash utilization plans remain unclear after the withdrawal of the demerger scheme, with no update provided to investors.
Ladies and gentlemen, good day and welcome to the Maharashtra Stainless Limited Q1 FY2027 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 at the end of today's presentation.
(Operator Instructions)
Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Vikas Singh from ICICI Securities Limited.
Thank you and over to you sir.
Good morning, everyone. Welcome to Maharashtra Seamless Ltd Q1 FY2027 conference call.
On behalf of you all, welcome to all. (technical difficulty)
Sorry to interrupt you Vikas, your voice is breaking.
Is it better?
Yes, this is quite better.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
