Maharashtra Seamless repays Rs 234 Cr loans, achieves debt-free status

Maharashtra Seamless repays Rs 234 Cr loans, achieves debt-free status

Maharashtra Seamless Achieves Debt-Free Status by Repaying Rs 234 Cr Loans

Maharashtra’s Mumbai, renowned for its seamless pipes and tubes production, witnessed a remarkable achievement as Maharashtra Seamless Ltd. successfully attained a debt-free status by fully repaying a substantial loan of Rs 234 crore ($28.33 million). This significant milestone led to a noteworthy upswing of up to 5% in the company’s shares, surging to an all-time high of Rs 498. The commendable financial performance of the company, coupled with robust internal accruals, enabled them to voluntarily repay this long-term debt and achieve a debt-free status.

The loan repayment, which marked the second voluntary prepayment in the previous eight months, took place on Friday, according to an official notification made to the stock markets by Maharashtra Seamless. The DP Jindal Group firm took use of its high order book and advantageous liquidity position to completely pay off its obligations by using internal resources.

With an amazing yearly capacity of 6.5 lakh tonnes for seamless pipes, Maharashtra Seamless runs its production facilities in Raigad, Maharashtra. The business serves a number of industries, including those in the oil & gas, power, automotive, and general engineering sectors. With 53 MW of solar power capacity and 7 MW of wind power capacity, it has also grown into the power generating industry.

The company’s financial performance in the most recent quarter showed impressive operational profit growth, which was fueled by a healthy order book. Maharashtra Seamless saw a 14% growth in sales during the March quarter, hitting Rs 1,633 crore as opposed to Rs 1,428.4 crore during the same time the year prior. Additionally, the company’s operational profit, or EBITDA, increased by an amazing 85%, from Rs 173.74 crore to Rs 321.54 crore.

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Maharashtra Seamless had a sizable order book at Rs 2,063 crore as of May 21, 2023. This encouraging trend has greatly increased investor confidence, as has the company’s proactive attitude to debt repayment. Maharashtra Seamless’ shares are currently trading 1.8 percent higher at Rs 481.7, demonstrating the market’s favourable reaction to its debt-free position.

The deliberate choice made by Maharashtra Seamless to pay off its debt and become debt-free is evidence of the company’s solid financial standing and dedication to long-term sustainability. The firm is well-positioned for future expansion and industry success thanks to a wide product range and a focus on important areas.

About Maharashtra Seamless:

Established on May 10th, 1988, Maharashtra Seamless Limited (MSL) stands as the leading entity within the diversified DP Jindal Group. The company specializes in the production of seamless pipes and tubes, utilizing the globally recognized CPE technology to ensure superior quality and an extensive range of products.

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