Man Industries has an order book of Rs 1,600 crore: Dr. R C Mansukhani, Chairman
Dr. R C Mansukhani, Chairman, Man Industries (India) Limited, talks about Q2FY21 results, international collaborations, export market, order book, liabilities and debt among others during a candid chat with Zee Business Executive Editor Swati Khandelwal
Dr. R C Mansukhani, Chairman, Man Industries (India) Limited, talks about Q2FY21 results, international collaborations, export market, order book, liabilities and debt among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:
Q: The numbers of September quarter has been a good one even June quarter was good if seen in the terms of growth and improved operational efficiency. Do you think the performance of Q2FY21 is a sustainable one?
A: Considering the order book position and the COVID effect has not impacted the company. So, the growth will continue and the next quarter numbers will be better than this. The first quarter was affected by the COVID, the second was free from COVID and the growth will continue in the next three to four quarters. Growth will be there in both, the turnover and the profitability.
Q: Non-current liabilities have declined from Rs 15 crore to Rs 80 lakhs and if the short-term quarter-on-quarter debts are excluded then the company is virtually debt-free. Do you think that the debt levels will be maintained?
A: We don’t have any programme to raise debts and the company is in a comfortable position, there is no debt on the company. Whatever surplus is lying with us is available in the banks, so there is no problem. As said earlier, our order book is very comfortable for the third and fourth quarter. Seeing the kind of work that is coming to our country in the oil and gas sector and on the export front the growth will continue, therefore we do not need any new loan at present.
Q: 41% of the promoter holding is pledged. What is the purpose behind it how long the holdings will continue to be pledged?
A: The 41% pledged has been released. The company took a loan from the State Bank of India in form of working capital, particularly for a project of IOCL. The loan has been repaid and maybe in the next four to five days, the holdings will be released. No equity has been pledged in the market at present. We will give a declaration in the stock exchanges as soon as they come back to us.
Q: When it comes to cash then you have cash of around Rs 240 crores at present and the market cap of the country is Rs 421 crore. So, let us know the way this cash will be utilized in the coming future, i.e. in expansion or rewarding the shareholders?
A: Shareholders have been rewarded in the recent past and they will be rewarded in the future as well. We have announced a 40% dividend this week, which is Rs 2 per share, which is interim for this year. We will reward further. The company will increase the range of value-added products and the cash will be utilized there. Going ahead, it will benefit the shareholders more.
Q: Tell us about the kind of order book that is available with you and the magnitude/ quantum in which you received the orders in the last three quarters and how many of them are under execution? Also, tell the order book visibility going forward from here?
A: As on today, we have an order book of around Rs 1,600 crore. We have received orders worth Rs 400-500 crore in the last two months and it has been added in it. Orders worth Rs 1,200-1,300 crore of this Rs 1,600 crore will be completed in the next two quarters. The remaining Rs 400-500 crore is an order for the next year and we have participated in the bids worth Rs 16,500 crore, which is in India as well as in the export market. Our 60-70% business is related to exports and the combination of the export and domestic market we are comfortable. So, this year is good for us till March and our order book is quite comfortable for the year that will start after March 2021.
Q: Update us on the type of international collaborations from your side and what is the export break-up from the revenue point of view as you have said 60-70%?
A: Yes, 60-70% is export and 30-35% is domestic and the ratio keeps changing a bit. But we have always been there in the export market, in which 40-50% has been related to exports and 40-50% domestic, the ratio changes every year. Lot of work is there is India at present due to which a lot of opportunities are visible in the Indian market as well in the coming time.
Q: What is your outlook on the opportunities that the Indian government is creating in terms of Aatma Nirbhar Bharat? And what is your view on water infra particularly as an opportunity and do you expect some big orders on the front and have to participate in the bids?
A: It is such that our supplies in oil and gas stand around 90%. And in India after this ‘Make in India’ and 'Aatma Nirbhar Bharat’ seems a bit difficult. It seems more difficult in our products, although there were certain threats some two-three years ago that imports can happen and some goods can come from China and all. But now it seems that there is no possibility for it. So in the coming times, there is a lot of government spending in the oil & gas sector and surely, we will get an opportunity in the segment.
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The government in the recent past (one to one and a half year) has brought certain schemes in the water sector, like Jal Shakti Abhiyan, Har Ghar Jal among others, due to which a lot of works related to infrastructure in the water sector will emerge. We will use our remaining capacity in the infrastructure segment. The debt growth will be zero in future also.
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