MMP Industries EBITDA at Rs 175 mn an Increase by 50%
MMP Industries reports a 50% increase in EBITDA to ₹175 million for Q1FY24, up 22% from ₹144 million in Q4FY23 and a rise of 50% from ₹117 million in Q1FY23
by Damodharan N
Updated Jul 24, 2024
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Table of Content
MMP Industries Limited, a prominent player in the aluminium sector, has reported a significant increase in its financial performance for the first quarter of FY24, ending on June 30, 2024.
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1FY24 reached ₹175 million, marking a notable 50% rise compared to ₹117 million in the same quarter last year. The EBITDA margin also improved to 11.28%, up 230 basis points from 7.7% in compared with previous quarter of the same year.
Despite these gains, MMP Industries faced challenges with stagnant volume growth due to intermittent availability of foil stock and wire rods, as well as temporary capacity mismatches in its Aluminium Powder Division. The company is actively working to address these issues.
Revenue performance across different business segments showed mixed results:
- Aluminium Powders: Revenue increased by 5% year-over-year to ₹1,084 million from ₹1,030 million.
- Aluminium Foils: Revenue grew by 10% year-over-year to ₹278 million from ₹253 million.
- Aluminium Conductors: Revenue fell by 17% year-over-year to ₹187 million from ₹225 million.
- Others: Revenue decreased by 6% year-over-year to ₹7 million from ₹8 million.
Management highlighted that, while the company is experiencing strong margins and improved profitability, maintaining consistent demand and addressing operational issues remain key focus areas. The company continues to work on enhancing its production capabilities and ensuring sustained growth across its business segments.
Source: Here
MMP Industries Q1FY24 Results
MMP Industries Limited has announced its financial results for the first quarter of fiscal year 2024-2025. The company reported a total revenue of ₹1,556 million for Q1FY24, marking a 3% increase from ₹1,516 million in Q1FY23.
The EBITDA for the quarter was ₹175 million, reflecting a significant 50% rise from ₹117 million in the same period last year. The EBITDA margin improved to 11.28% from 7.7% in Q1FY23, an increase of 356 basis points. PAT stood at ₹113 million, up 41% from ₹80 million in Q1FY23.
Segmental Highlights & Guidance:
- Aluminium Powders: Demand was strong, but production faced challenges due to extreme heat and manpower issues. Management is addressing these challenges and expects export ramp-up to accelerate in the second half of FY24.
- Aluminium Conductors and Cables: Focused on margin expansion and efficient cash flows, with sales restricted to maintain financial health. The company is poised to benefit from the expected growth in electrical infrastructure.
- Aluminium Foils: Saw a 10% increase in both volume and revenue compared to last year, driven by high demand. Despite industry challenges and competition from Chinese imports, the company is optimistic about potential anti-dumping measures that could boost sector growth.
|
Particulars |
Q1FY24 |
Q4FY23 |
QoQ% |
Q1FY23 |
YoY% |
|
Total Revenue |
₹1,556 mn |
₹1,605 mn |
-3% |
₹1,516 mn |
3% |
|
EBITDA |
₹175 mn |
₹144 mn |
22% |
₹117 mn |
50% |
|
EBITDA Margin |
11.28% |
9% |
230 bps |
7.7% |
356 bps |
|
PAT |
₹113 mn |
₹100 mn |
13% |
₹80 mn |
41% |
|
PAT Margin |
7.3% |
6.2% |
104 bps |
5.3% |
199 bps |
MMP Industries remains committed to overcoming operational challenges and is well-positioned for future growth.
MMP Industries
MMP Industries Limited, based in Nagpur, Maharashtra, specializes in manufacturing aluminium products, including powders, foils, and conductors. Established in 1983 with technical collaboration from AVL Metal Powders, Belgium, the company has grown to become a globally recognized player in the aluminium powder sector.
Listed on the NSE since April 2018, MMPIL serves a diverse customer base with technical support and efficient logistics. It is a key supplier to Ordnance Factories in India, adhering to defense specifications.
The company's mission is to exceed customer expectations through process optimization, while its vision is to be the preferred brand for aluminium products. MMPIL operates three manufacturing plants in Bhandara and Nagpur.
MMP Industries EBITDA at Rs175 mn an increase by 50% - FAQs
1. What was MMP Industries' total revenue for Q1FY24?
MMP Industries' total revenue for the first quarter of FY24 was ₹1,556 million, which represents a 3% increase compared to ₹1,516 million in Q1FY23.
2. How much did MMP Industries' EBITDA increase in Q1FY24?
MMP Industries' EBITDA for Q1FY24 increased by 50%, reaching ₹175 million, up from ₹117 million in the same quarter of the previous fiscal year.
3. What is the EBITDA margin for Q1FY24?
The EBITDA margin for Q1FY24 was 11.28%, reflecting an improvement from the 7.7% margin in Q1FY23.
4. How did the EBITDA margin for Q1FY24 compare to Q1FY23?
The EBITDA margin improved by 356 basis points from 7.7% in Q1FY23 to 11.28% in Q1FY24.
5. What was the PAT for MMP Industries in Q1FY24?
The Profit After Tax (PAT) for MMP Industries in Q1FY24 was ₹113 million, which is a significant increase from ₹80 million in the same quarter of the previous fiscal year.
6. How did the PAT for Q1FY24 change from Q1FY23?
The PAT increased by 41% from ₹80 million in Q1FY23 to ₹113 million in Q1FY24.
7. What was the revenue for Aluminium Powders in Q1FY24?
The revenue from Aluminium Powders in Q1FY24 was ₹1,084 million, up from ₹1,030 million in the same quarter of the previous year.
8. How much did Aluminium Powders revenue increase year-over-year?
The revenue for Aluminium Powders increased by 5% compared to the same quarter last year.
9. What was the revenue for Aluminium Foils in Q1FY24?
The revenue for Aluminium Foils in Q1FY24 was ₹278 million, compared to ₹253 million in Q1FY23.
10. How did Aluminium Foils revenue change compared to Q1FY23?
The revenue for Aluminium Foils grew by 10% year-over-year.
11. What was the revenue for Aluminium Conductors in Q1FY24?
The revenue for Aluminium Conductors in Q1FY24 was ₹187 million, down from ₹225 million in the same quarter last year.
12. How did Aluminium Conductors revenue change year-over-year?
Revenue from Aluminium Conductors decreased by 17% compared to the previous year.
13. What was the revenue for Others in Q1FY24?
The revenue from Others in Q1FY24 was ₹7 million, compared to ₹8 million in Q1FY23.
14. How much did the revenue for Others decrease compared to Q1FY23?
The revenue for Others decreased by 6% compared to the previous year.
15. What was the EBITDA for MMP Industries in Q4FY23?
The EBITDA for MMP Industries in Q4FY23 was ₹144 million.
16. How did the EBITDA for Q1FY24 compare to Q4FY23?
The EBITDA for Q1FY24 increased by 22% from ₹144 million in Q4FY23.
17. What was the PAT for MMP Industries in Q4FY23?
The PAT for MMP Industries in Q4FY23 was ₹100 million.
18. How did the PAT for Q1FY24 compare to Q4FY23?
The PAT for Q1FY24 increased by 13% compared to ₹100 million in Q4FY23.
19. What challenges did MMP Industries face in Q1FY24?
MMP Industries faced challenges such as stagnant volume growth due to intermittent availability of foil stock and wire rods, as well as temporary capacity mismatches in the Aluminium Powder Division.
20. When was MMP Industries listed on the NSE?
MMP Industries was listed on the National Stock Exchange (NSE) on April 13, 2018.
21. How much did Aluminium Foils revenue increase year-over-year?
Aluminium Foils revenue increased by 10% compared to the same quarter last year.
22. What is the EBITDA margin for Q4FY23?
The EBITDA margin for Q4FY23 was 9%.
23. How did the EBITDA margin for Q1FY24 compare to Q4FY23?
The EBITDA margin for Q1FY24 improved by 230 basis points from 9% in Q4FY23.
24. What is the PAT margin for Q1FY24?
The PAT margin for Q1FY24 was 7.3%.
25. How did the PAT margin for Q1FY24 compare to Q1FY23?
The PAT margin increased by 199 basis points from 5.3% in Q1FY23.
26. What challenges are faced in Aluminium Powders production?
Production challenges include extreme heat and manpower issues affecting production efficiency.
27. What is MMP Industries’ strategic focus for the second half of FY24?
The company is focusing on addressing production challenges and ramping up exports to enhance growth.
28. What are the key locations of MMP Industries' manufacturing plants?
MMP Industries operates three manufacturing plants located in Bhandara and Nagpur districts of Maharashtra.
29. How has MMP Industries performed in terms of revenue growth from Q1FY23 to Q1FY24?
The total revenue grew by 3% from ₹1,516 million in Q1FY23 to ₹1,556 million in Q1FY24.
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