Man Infraconstruction shares slip 6% after Q3 profit and revenue fall

Man Infraconstruction Ltd reported a weak performance for the December quarter, with profitability and margins coming under pressure amid a sharp decline in operating income.

The company’s net profit fell 36.7% year-on-year to ₹51.6 crore in Q3, compared with ₹84 crore in the same quarter last year.

Revenue from operations also declined 36.7% YoY to ₹153.3 crore, down from ₹242.3 crore a year ago, reflecting slower execution and muted activity during the quarter.

Operating performance deteriorated sharply.

EBITDA dropped 69.3% YoY to ₹32.7 crore, compared with ₹106.6 crore in Q3 last year. As a result, EBITDA margin contracted to 21.3% from 44%, indicating pressure on cost absorption and operating leverage.

On the cost front, total expenses stood at ₹126.3 crore in Q3, compared with ₹140.4 crore in the year-ago quarter. Cost of materials consumed came in at ₹54.6 crore, while changes in inventories resulted in a ₹32.9 crore write-down during the quarter.

Employee benefit expenses were ₹18.2 crore, while finance costs stood at ₹2.2 crore. Depreciation, amortisation and impairment charges came in at ₹3.5 crore. Sub-contract and labour charges were ₹46.1 crore, and other expenses amounted to ₹28.0 crore for the quarter.

Man Infraconstruction Ltd (Man Infra), listed on Indian stock exchanges, is an integrated engineering, procurement, and construction (EPC) company. It operates in two main segments: EPC contracts and real estate development (asset ownership).

For the nine months ended December 31, Man Infraconstruction reported revenue from operations of ₹484.9 crore, compared with ₹814.3 crore in the corresponding period last year. Net profit for the nine-month period declined to ₹195.6 crore, from ₹215.6 crore a year ago, reflecting continued pressure on execution and operating profitability.

Shares of Man Infra were trading 6% lower at ₹116.80 at 14:34 IST on the NSE.