Man Industries long-term debt stands at Rs 40 crore: Dr. R C Mansukhani, Chairman

Dr. R C Mansukhani, Chairman, Man Industries (India) Limited, talks about Q1FY21 results, international collaborations, export market, order book and debt among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

Results were exceptionally good and your profit grew by 4x, topline also grew by more than 60%. Talk about the factors that led to this exceptional result?
The reason for improving the result - although that is not a satisfactory because of the COVID the work in the first quarter stood for around two months rather than three months – because of the order book position, which was approximately Rs 1,800 crore. Our order book position stands at approx Rs 600 crore for every quarter for the next three-four quarters.

Tell us about the international collaborations you have made and share the revenue breakup from exports?
Exports has a contribution of around 70% in our revenues. We have an order book of Rs 1,800-2,000 crore of which Rs 1,300-1,400 crore is export and remaining Rs 600-700 crore is from domestic oil and gas sector.

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What kind of trends is visible in terms of the order book and do you expect any good uptick in it?
We have put bids for more than $ 2 billion (roughly Rs 17,000-18,000 crore) in the domestic as well as the international market. So, our order book is going to be a very comfortable one. Vision for 2020-21 is 100% sure as we have an order book of around Rs 1,800-2,000 crore and we are bidding a lot for 2021-22. Hopefully, our future is very bright.

The debt on books is Rs 250 crores as around 41% of the promoter holding is pledged. What is your guidance on debt reduction?
We have a debt of just Rs 40 crore, which is just 0.05% of our debt to equity. Rs 40 crore debt is standalone and the remaining debt is based in the working capital. And, the working capital limit moves up and down according to the order book position and the shipment. So, our company’s long term debt stands at just Rs 40 crore, which is 0.05%.

How the demand is panning out? We are moving towards unlocking, so, what is your outlook for FY21?
It is so that we have two plants at two different locations and both of them are functional, now. Our plants were closed for a month due to COVID but now they are running at 90-95% capacity. Even the order book is comfortable. Possibly, we will get good orders in the future because of the gas revolution. It is being said that the gas transmission line will be created in the future in the form of city gas transmission and city gas distribution. So, a lot of work is likely to be created in India and we are already doing good work in the international market. The coming future is bright for our company.