August 1, 2023 | Investopaper
Mainawati Steel Industries Limited reported an operating income of Rs. 4,923 million in the first ten months of the fiscal year 2022/23. It recorded an impressive annualized growth of approximately 36 percent. This notable progress can be attributed to a crucial tender received from the Nepal Electricity Authority (NEA) for the supply of tubular/telescopic poles, leading to an increased capacity utilization of around 41 percent, a marked rise from the 31 percent recorded in FY22.
In recent years, the company encountered challenges, particularly in the aftermath of the COVID-19 pandemic, leading to an 8-10 percent decline in total operating income during the three-year period ending in FY22. Despite these hurdles, the company managed to maintain a relatively stable Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin, hovering around 10-12 percent during this time frame, except for FY21, when it reported a higher margin of approximately 14 percent.
The company’s product portfolio encompasses a diverse range of offerings, including MS Black Pipes, MS Sheets, Tubular/Telescopic Poles, GI Pipes, Structures, Shutter Profile, among others, catering to varying market demands. This wide array of applications not only mitigates the risk of reliance on a single industry but also enables the company to cater to a larger market with a broad customer base. All of these products are marketed and sold under the established brand name “MSI.”
Mainawati Steel Industries Private Limited, originally incorporated in May 1995 as a private limited company, transformed into public company in July 2023, rebranding itself as Mainawati Steel Industries Limited . The company’s manufacturing plant, situated in Duhabi, Sunsari District, Nepal, specializes in the production of diverse pole, steel, and sheet products, with a commendable total installed capacity of 111,900 Metric Tons Per Annum (MTPA). The company is owned by Vishal group. Mr. Trilok Chand Agrawal, the chairman of the company, holds an approximate 17% stake in the company.