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    Man Infra

    MANINFRAGood
    Construction·2 Aug 2023
    Management Summary

    Man Infraconstruction delivered a strong Q1 FY24, marked by significant growth in revenue, EBITDA, and net profit, driven by robust execution in both EPC and real estate segments. The company secured a substantial new port order, expanded its real estate portfolio with high-potential projects, and maintained a healthy balance sheet with reduced debt and strong liquidity. Management expressed confidence in continued growth and timely project deliveries.

    Highlights

    8

    • Revenue from operations grew 45% YoY to ₹510 crores in Q1 FY24.

    • EBITDA increased by 63% YoY to ₹109 crores.

    • Net profit jumped 112% YoY to ₹82 crores.

    • Financial costs decreased by 36% YoY to ₹9 crores.

    • Secured debt stood at ₹136 crores as of June 2023, with liquidity over ₹530 crores.

    • EPC order book strengthened to over ₹1,265 crores, including a new ₹680 crore port order.

    • Real estate portfolio expanded to 4.6 million sq ft, with a new Ghatkopar project having ₹1,200 crores revenue potential.

    • Declared a second interim dividend of ₹0.36 per equity share, totaling ₹0.72 per equity share for FY23-24.

    What Changed2

    vs Q2 FY24

    Guidance items12 → 16 (+4)Risks discussed1 → 2 (+1)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue from Operations₹510 Cr+45%YoY
    2. 02Total Income₹524 Cr+45%YoY
    3. 03EBITDA₹109 Cr+63%YoY
    4. 04Net Profit₹82 Cr+112.0%YoY
    5. 05Financial Cost₹9 Cr-36%YoY

    Guidance & targets

    16
    CategoryTargetPriority
    EPC
    EPC Order Book Completion Period
    2.5 to 3 years
    		High
    Real Estate
    Ghatkopar Project Revenue Potential
    ₹1,200 crores
    		High
    Real Estate
    Upcoming Projects Launch
    during the current financial year during the festive time
    		High
    Real Estate
    Ghatkopar 'Aaradhya One Earth' Project Delivery
    during the current financial year
    		High
    Real Estate
    Dahisar Project Completion
    by October end
    		High
    Real Estate
    Juhu Project RCC Completion
    by the coming March
    		High
    Real Estate
    Vile Parle Project Start
    October latest by November
    		High
    Real Estate
    Ghatkopar (first project) Completion
    by December
    		High
    Real Estate
    Ghatkopar (new project) Start
    by October
    		High
    Real Estate
    Mulund 3rd and 4th Building Completion
    another two years
    		High
    Real Estate
    Mulund Commercial Building Completion
    by this October
    		High
    International Ventures
    US Projects Completion
    around year 2026-27
    		High
    International Ventures
    US Projects Top Line
    USD 500 million plus
    		Medium
    International Ventures
    US Projects Partnership Stake
    25%
    		High
    Revenue
    Revenue Growth
    much better revenue growth overall in the top line and bottom line
    		Medium
    Profitability
    Margin Sustainability
    definitely sustainable
    		High

    Risks & concerns

    2
    RiskSeverity

    Real estate market oversupply in Mumbai

    Analyst raised concern about 'a lot of supply so oversupply is an issue' in Mumbai's real estate market. — Analyst acknowledged

    medium

    Regulatory and government approval delays in real estate projects

    Management noted that 'every year some government resolution comes, sometimes NGT problem comes, sometimes environment problem comes, sometimes the Supreme Court guidelines comes' which poses a risk, but stated their DM model mitigates this by reducing upfront land investment. — Management acknowledged

    medium

    Q&A highlights

    3

    “But the momentum is definitely looking strong. The inquiries that are coming in through the broker network which has been currently talking to us regarding this particular project is very strong and this tower has created his own impression in the market of South Mumbai, which is looking very fruitful for us in the near future.”

    Provides insight into the market reception for their premium projects and the company's outlook on future sales momentum.

    asked by Amit Agarwal

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q1 FY24 Financial Performance

    Man Infraconstruction reported robust Q1 FY24 results, with revenue from operations growing 45% year-on-year to ₹510 crore. EBITDA saw a significant 63% increase to ₹109 crore, while net profit more than doubled, jumping 112% to ₹82 crore. The company also reduced its financial costs by 36% to ₹9 crore and maintained a healthy liquidity of over ₹530 crore with secured debt at ₹136 crore as of June 2023.

    02

    Expanding EPC Order Book and Execution Pace

    The EPC division secured a new large port order worth ₹680 crores from BMCT (PSA group) for Phase-2 infrastructure works at JNPT's 4th container terminal. This new order has strengthened the EPC order book to approximately ₹1,265 crores, providing revenue visibility for the next 2.5 to 3 years. Management highlighted commitment to delivering this new project within 2.5 years and noted being ahead of schedule on existing port projects.

    03

    Strategic Real Estate Portfolio Growth and Asset-Light Model

    Man Infra's real estate portfolio now stands at approximately 4.6 million square feet, comprising 2 million square feet of ongoing projects and 2.6 million square feet of upcoming projects. A significant addition is an ultra-luxurious residential project in Ghatkopar East, Mumbai, with a salable carpet area of 4 lakh square feet and an estimated revenue potential of ₹1,200 crores over the next four years. The company continues to focus on an asset-light Joint Development Agreement (JDA) or Joint Venture (JV) model, which helps mitigate risk and reduce upfront investment.

    04

    Progress and Timelines for Ongoing Real Estate Projects

    The company provided detailed updates on several ongoing projects, with many nearing completion. The Ghatkopar 'Aaradhya One Earth' and Mulund 'Atmosphere O2' towers D and E are expected to be delivered during the current financial year. The Dahisar 'Aaradhya Highpark' project is expected to complete its current phase by October end, while the Juhu project's RCC work is targeted for completion by March, followed by finishing in six months. New projects in Vile Parle and Ghatkopar are slated to commence by October-November.

    05

    International Ventures in the US Market

    Through its subsidiary MICL Global, the company is collaborating with Marriott International on 'Edition Residences' in Fort Lauderdale, marking Marriott's first branded project there. Man Infra has invested approximately USD 15 million in the US projects and maintains USD 15 million in liquidity for future ventures. The company expects to complete all three US projects by 2026-27, with a projected top line of over USD 500 million, where MICL holds a 25% partnership.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.