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Key Points

Manika Plastech reported a 9% decline in revenue for FY24, with total income down by 7.6% compared to the previous year. Despite a challenging financial landscape, the company saw a slight increase in profit after tax, rising by 1.76%. Manika Plastech's borrowings surged to Rs 93 crore, raising concerns as it prepares for an IPO. The company plans to list shares on BSE and NSE, with Pantomath Capital Advisors managing the issue.

Key Points: Manika Plastech's Revenue Dips 9% Amidst IPO Preparations

  • Manika Plastech revenue drops 9% to Rs 360.7 crore in FY24
  • Total income decreased by 7.6% compared to FY23
  • Borrowings increased to Rs 93 crore, impacting financial health
  • IPO to include fresh issue and offer for sale, managed by Pantomath
2 min read

IPO-bound Manika Plastech's revenue falls over 9 pc in FY24, total income drops 7.6 pc

Manika Plastech sees a 9% revenue decline in FY24 as it gears up for IPO.

"Our borrowings surged significantly to Rs 93 crore in FY24. - Manika Plastech DRHP"

Mumbai, July 3

Manika Plastech Limited, which recently filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), reported a decline of more than 9 per cent in its revenue for the financial year ended March 31, 2024 (FY24).

The company’s revenue from operations stood at Rs 360.7 crore in FY24, down from Rs 396.5 crore recorded in FY23, according to the DRHP.

Following suit, the company's total income fell 7.61 per cent to Rs 368.7 crore in FY24, compared to Rs 399.1 crore in FY23.

Additionally, the company's borrowings surged significantly. The closing balance of borrowings for FY24 stood at Rs 93 crore, compared to Rs 62.6 crore in FY23.

However, the company managed to post a modest increase in profit after tax (PAT), rising 1.76 per cent to Rs 11.5 crore in FY24, up from Rs 11.3 crore in the previous financial year.

The company's total expenses reduced by nearly 8 per cent, bringing them down to Rs 352.2 crore in FY24 from Rs 383.1 crore in FY23.

For the nine months period ended on December 31,2024, the revenue from operations stood at Rs 295.5 crore.

The net profit of the Mumbai-based rigid polymer packaging firm for the same period stood at Rs 11.6 crore.

Manika Plastech’s proposed IPO consists of a combination of fresh issue and an offer for sale (OFS), with the company planning to offer up to 1.5 crore equity shares with a face value of Rs 2 each.

One of the promoters, VRIDAA Holding Trust, will offload part of its stake through the offer for sale route.

Pantomath Capital Advisors Private Limited is the lead manager for the issue, while MUFG Intime India has been appointed as the registrar.

The company intends to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Incorporated in April 1996 as Manika Moulds Private Limited under the Companies Act, 1956, Manika Plastech deals in the plastic moulding segment.

- IANS

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Reader Comments

P
Priya S
The plastic industry is facing tough times globally with sustainability pressures. Maybe Manika should focus more on eco-friendly packaging solutions before going public. 🌱
A
Aman W
As someone in the manufacturing sector, I know how tough FY24 was. The fact that they managed to increase PAT despite revenue drop shows good cost control. Might be worth considering post-listing.
S
Shreya B
Promoters selling stake through OFS while company takes on more debt? Red flag alert! Why should retail investors buy when insiders are exiting? 🤔
V
Vikram M
The packaging industry has good long-term prospects in India. If priced reasonably, this could be a decent bet for patient investors. But wait for the final valuation numbers.
N
Nikhil C
Borrowings up by nearly 50% in one year is concerning. What are they using this money for? The DRHP should explain this clearly before asking public for money.

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