Maharashtra Seamless (500265) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw improved dispatches of seamless pipes and a better product mix, boosting earnings, though revenue and profit declined year-over-year.

• Reversal of Q1 inventory markdowns and higher value-added order dispatches led to improved margins.

• Order book stands at INR 1,674 crores as of January 20, 2025, within the typical INR 1,500–2,000 crore range, with 66% from non-ONGC/OIL clients.

• No slowdown in demand; strong medium-term outlook for capital goods, infrastructure, and oil & gas sectors.

• Board approved unaudited consolidated and standalone financial results for Q3 FY25; new CFO appointed and MD reappointed.

Financial highlights

• Q3 FY25 revenue rose 2% sequentially to INR 1,410 crores; EBITDA up 21% to INR 280 crores with a 20% margin.

• PAT declined to INR 190 crores from INR 224 crores in Q2; EPS fell to INR 14.19 from INR 16.73.

• Other income for 9M FY25 was INR 157 crores, up 60% from INR 97 crores in 9M FY24.

• Treasury at INR 2,417 crores as of December 31, 2024, managed with a dedicated team; no net debt.

• Standalone and consolidated net profit for Q3 FY25 were INR 190.17 crores and INR 186.06 crores, respectively.

Outlook and guidance

• Seamless pipe dispatches expected to reach 430,000–435,000 tons for FY25; ERW segment to reach 90,000 tons.

• Telangana finishing line to be commissioned by December 2025, ramp-up starting January 2026; initial run rate of 15,000 tons for Q4 FY26.

• Back-to-back raw material booking strategy locks in margins and reduces price risk.

• All planned capex and working capital needs to be funded from internal accruals; no new debt required.

• Tax liability/provision based on estimated annual computation; adjustments in the last quarter.