Expressing his optimism, Dr Mansukhani said, “This will help us perform even better in times to come. Our ERW steel pipes project implementation is on track and is developing well as per the revised schedule and is expected to be completed by Q4 FY23. Along with this, our plan to enter the stainless steel business has also been progressing well, as an order for major critical equipment has already been placed and work is going on in full swing.” Having realized the need to improve its EBIDTA margins, the company has decided to diversify into value-added products like connector and bends. It has started undertaking the required capex to further expand these product offerings so as to eventually become a product-based company from a project- based one.

In the management’s belief, the new product offerings like ERW pipes, steel bends and stainless steel pipes will improve the company’s EBITDA. Likewise, its technical collaboration for connectors will augur well in fetching better operating margins. MIL is aspiring to a revenue CAGR of 18%-20% on the back of better utilization of existing facilities and addition of new products. The company is also desirous to explore opportunities in the clean fuel transportation space. Explaining the rationale of strengthening MIL’s competitive position and improving margins, Dr Mansukhani said, “We are improving lead time, optimizing production, focusing on larger orders, adapting technology etc. by developing our internal capabilities.”

“In order to increase our operating margins and competitive position, we are improving lead time, optimizing production, focusing on larger orders, adapting technology etc. by developing our internal capabilities.”
— Dr R. C. Mansukhani, Chairman

MIL has entered into a technical collaboration and knowhow agreement with Singapore-based OMS Oilfield Services Pte Ltd, through its wholly owned subsidiary, Man Offshore & Drilling Ltd, for manufacturing high-quality speciality connectors and crossovers. The manufacturing of stainless steel will be carried out by another wholly owned subsidiary, Man Stainless Steel Ltd. The project is likely to be completed by Q3/Q4 of the next financial year 2024. It is worth mentioning that market regulator SEBI vide its letter of 22.11.21 has informed the company about the appointment of a forensic auditor to investigate the accounts of the company for a period of seven years from FY 2015 till FY2021 with regard to certain transactions of the company. The scope of the audit indicates a possibility of fraud and diversion of funds. However, surprisingly, it is learnt that such sensitive matter came to the investors’ knowledge only in May 2022. On this matter, the management has clarified that all required details have been submitted and it is awaiting the final outcome of the audit. The management has also indicated that the outcome of the audit will not have a material impact on the financial statements of the company.

In another important development, the company, through its wholly owned subsidiary Marino Shelters Pvt Ltd, is developing a residential/IT/commercial real estate project at Nerul, Navi Mumbai. The company is carrying an investment amount of Rs 10,230 lakh in its consolidated accounts. However, the auditors have qualified that due to an ongoing dispute with the lender, there are indicators of potential impairment of the investments made by the company in its subsidiary. However, using the ‘DCF’ valuation method and also based on the valuation report, the management doesn’t feel the necessity of making any provision and the same are being considered good.