Maharashtra Seamless (500265) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw improved dispatches of seamless pipes, a better product mix, and a 2% sequential revenue increase, though revenue and profit declined year-over-year.

• PAT for Q3 FY25 was ₹190 crore, down from ₹224 crore in Q2 and ₹280 crore in Q3 FY24; EPS fell to ₹14.19.

• Maintains a 55% market share in seamless pipes and 18% in API-certified ERW pipes.

• Order book stands at ₹1,674 crore as of January 20, 2025, within the typical range.

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

Financial highlights

• Q3 FY25 revenue was ₹1,410 crore, up 2% sequentially but down from ₹1,465 crore in Q3 FY24; EBITDA was ₹280 crore with a 20% margin.

• PAT declined to ₹190 crore from ₹224 crore in Q2; EPS for Q3 FY25 was ₹14.19, down from ₹16.73 in Q2 and ₹21 in Q3 FY24.

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

• Treasury and net cash position at ₹2,417 crore as of December 31, 2024.

• All long-term loans prepaid by June 2023; no new debt required for capex or working capital.

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 in January 2026; initial run rate of 15,000 tons for Q4 FY26.

• Market for seamless pipes expected to grow at 4% CAGR, driven by oil & gas capex and robust domestic demand.

• Large tenders expected from BPCL, GAIL, and other gas distribution projects.

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