Manaksia Coated Metals & Ind has reported a remarkable 491% year-on-year increase in net profit to ₹13.96 crore for the second quarter, showcasing strong operational performance and successful execution of strategic initiatives.

Financial Highlights

The company's financial results for Q2 demonstrate significant growth across key metrics:

Operational Performance

The company reported strong operational metrics:

• Galvanized Steel production increased by 7.91% YoY to 26,572 MT
• PPGI Steel production grew by 18.21% YoY to 21,653 MT
• Value-added products (PPGI) contributed 92% of total sales volume
• Exports reached an all-time high of 85.06% of total sales
• Export revenue surged by 151% YoY

Strategic Initiatives and Future Outlook

Manaksia Coated Metals is making progress on key capital projects:

1. Aluminium-Zinc Coating Line upgrade set to begin transition phase
2. New Colour Coating Line expected to increase total colour coating capacity by over 170%, with commissioning targeted for FY 2027
3. 7 MWp Solar Power Plant project initiated at Kutch, aiming to replace over 50% of grid dependency with renewable energy

Financial Strength

The company's focus on deleveraging and prudent financial management has yielded positive results:

• Debt-to-Equity ratio improved to 1.19x
• Total debt reduced by 27% since March 2025
• Received credit rating upgrades from Acuité Ratings:
  • Long-term Rating: Upgraded to A from A(-)
  • Short-term Rating: Upgraded to A1 from A2

Management Commentary

Mr. Karan Agrawal, Whole Time Director of Manaksia Coated Metals & Industries Limited, commented on the performance, stating, "We are delighted to report another strong quarter for MCMIL, marked by robust operational performance, significant improvement in profitability, and continued execution of our strategic growth initiatives."

He further added, "With a sharper focus on premium product lines, exports, sustainability, and digital transformation, we remain confident of continuing our growth momentum in the coming quarters and creating lasting value for our stakeholders."

The company's strong performance, coupled with its strategic initiatives and focus on sustainability, positions Manaksia Coated Metals & Industries Limited for continued growth in the coated steel manufacturing and export market.

Manaksia Coated Metals & Industries Limited has reported robust financial results for the second quarter of fiscal year 2025-26, coupled with ambitious plans for fundraising and capital restructuring.

Financial Performance

The company's unaudited financial results for the quarter ended September 30, 2025, showcase a strong performance:

Fundraising Initiative

In a significant move, the Board of Directors has approved a proposal to raise funds up to Rs 350 crores. This fundraising effort may be executed through various securities, including:

• Equity shares
• Convertible debentures
• Warrants

The company plans to utilize qualified institutional placements (QIP) or other permissible methods for this capital raise, subject to necessary approvals.

Capital Restructuring

Manaksia Coated Metals is also set to increase its authorized share capital:

This increase from 12.50 crore equity shares to 16 crore equity shares, each with a face value of Rs 1, will require shareholder approval through a postal ballot.

Corporate Governance

To ensure transparency and compliance, the company has appointed M/s. S.S. Reddy & Associates, Practicing Company Secretaries, as scrutinizers for the postal ballot process.

Market Implications

The strong quarterly performance, coupled with the ambitious fundraising plan, signals Manaksia Coated Metals' intent for expansion and growth. The increase in authorized share capital suggests the company may be preparing for future equity issuances, potentially linked to the fundraising initiative.

Investors and market watchers will likely keep a close eye on how the company utilizes the raised funds, should the proposal be approved and implemented.

As the company moves forward with these plans, shareholders will play a crucial role in approving the proposed changes through the upcoming postal ballot. The outcome of this process will be pivotal in shaping Manaksia Coated Metals' future strategic direction and financial structure.