Maharashtra Seamless Q1 Revenue Dips 11% Amid Market Headwinds
Maharashtra Seamless Limited experienced a challenging Q1 with revenue falling 11% to Rs 1,303.00 crores. EBITDA dropped 41% to Rs 165.00 crores, while PAT declined 4% to Rs 234.00 crores. The company dispatched 103,000 tons of seamless pipes, but faced a slowdown in order booking, with the order book decreasing by Rs 400.00 crores to Rs 1,149.00 crores. Chinese dumping and reduced oil and gas sector expenditure were cited as key challenges. Despite operational difficulties, the company maintains a strong treasury position of Rs 2,919.00 crores and an AA+ credit rating. Ongoing projects include a finishing line in Telangana and a cold drawn pipes project in Maharashtra.

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Maharashtra Seamless Limited , a leading seamless pipe manufacturer, reported a challenging first quarter, with revenue declining 11% to Rs 1,303.00 crores compared to the previous quarter. The company faced headwinds from Chinese dumping and reduced expenditure in the oil and gas sector, impacting its order book and financial performance.
Financial Performance
The company's EBITDA saw a significant drop of 41% to Rs 165.00 crores, while Profit After Tax (PAT) declined by 4% to Rs 234.00 crores. Earnings Per Share (EPS) stood at Rs 17.00 for the quarter. Despite the decline in operational performance, Maharashtra Seamless maintained a strong treasury position, which contributed Rs 160.00 crores to other income, helping to cushion the impact on the bottom line.
Operational Highlights
Maharashtra Seamless dispatched 1,03,000 tons of seamless pipes during the quarter. However, the company experienced a marked slowdown in order booking, which has persisted longer than anticipated. The order book stood at Rs 1,149.00 crores, down by Rs 400.00 crores quarter-on-quarter, reflecting the challenging market conditions.
Market Challenges
Kaushal Bengani, Deputy General Manager of Investor Relations and Finance, attributed the slowdown to two primary factors:
- Chinese dumping of seamless pipes
- Reduced expenditure in the oil and gas sector
These factors have led to a decline in sales realization and put pressure on margins. The company expects the September quarter to remain muted on the margin front.
Financial Position
Despite the operational challenges, Maharashtra Seamless maintains a strong financial position:
Metric | Value |
---|---|
Treasury | Rs 2,919.00 crores |
Credit Rating | AA+ |
Ongoing Projects
The company is progressing with two key projects:
- Finishing line in Telangana: Rs 80.00 crores in purchase orders issued
- Cold drawn pipes project in Maharashtra: Machine installations planned for August-September
Future Outlook
While the company faces near-term challenges, management remains focused on maintaining its market leadership position. Maharashtra Seamless is preparing for the renewal of anti-dumping duties and plans to petition for higher minimum import prices and broader product coverage to address Chinese dumping.
The company's cautious approach to expansion and strong cash position are expected to help weather the current market turbulence. However, recovery in the oil and gas sector spending will be crucial for improving order inflow and financial performance in the coming quarters.
Maharashtra Seamless continues to monitor market conditions closely and remains prepared to adapt its strategies to maintain its competitive edge in the seamless pipe industry.
Historical Stock Returns for Maharashtra Seamless
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-1.45% | -5.73% | -10.87% | +3.01% | +9.29% | +529.44% |