InvestorQ : What explains the sharp increase in the quarterly profits of Maharashtra Seamless?
Neelam Naik made post

What explains the sharp increase in the quarterly profits of Maharashtra Seamless?

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Anu Biswas answered.
1 month ago
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Let me start with the top line performance of Maharashtra Seamless for Q2FY23. The company reported 48.6% higher sales revenues for the September 2022 quarter at Rs1,414 crore. What were the key drivers of revenues for Maharashtra Seamless? For the September 2022 quarter, the steel pipes and tubes vertical recorded sales growth of 14.9% at Rs1,394 crore. While the revenues of the power business fell, the Rigs business saw a spike in revenues, albeit on a very low base. Maharashtra Seamless announced a 1:1 bonus issue of shares, taking post-bonus number of shares to 13.4 crore. Here is a gist of the numbers.

Maharashtra Seamless

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 1,414.21

₹ 951.42

48.64%

₹ 1,334.37

5.98%

Net Profit (Rs cr)

₹ 176.58

₹ 91.90

92.14%

₹ 153.23

15.24%

Diluted EPS (Rs)

₹ 26.36

₹ 13.57

₹ 22.87

Net Margins

12.49%

9.66%

11.48%

Let me now turn to the profit performance of Maharashtra Seamless. It reported net profits growing by 92.14% at Rs176.58 crore with 15.24% sequential growth in profits. Operating profits from steel pipes and tubes segment increased by 72.2% yoy, while profits from the power business was flat and Rigs business fell into EBIT losses. Net margins of the company came in at 12.49% for Q2FY23 as compared to 9.66% in the year ago quarter if Q2FY22 and 11.48% in the sequential June 2022 quarter. The company also booked a rather steel Rs7.81 crore forex loss in the latest quarter.

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