Jindal Saw hits record high as Q1 PAT spurts 67% YoY

Jindal Saw soared 7.27% to Rs 646.25 after the company's consolidated net profit jumped 66.69% to Rs 441.06 crore in Q1 FY25 as against with Rs 264.60 crore posted in Q1 FY24.

Total income grew by 12.08% year on year to Rs 4,984.81 crore during the quarter.

Profit before tax (PBT) climbed 66.35% to Rs 588.23 crore in Q1 FY25 as against with Rs 353.61 crore posted in Q1 FY24.

EBITDA stood at Rs 885.3 crore in Q1 FY25, registering a growth of 37.3% as compared with Rs 644.8 crore in Q1 FY24.

Production of Iron & Steel Pipes jumped 12% to 4,39,000 MT in Q1 FY25 from 3,91,000 MT produced in Q1 FY24. Iron & steel sales rose 8% to 4,00,000 MT in Q1 FY25 as against 3,69,000 MT in Q1 FY24.

 

Production of Pellets grew by 15% to 4,26,000 MT in Q1 FY25 as compared with 3,70,000 MT produced in Q1 FY24. Pellets sales rose 5% to 4,13,000 MT in Q1 FY25 as against 3,93,000 MT in Q1 FY24.

The company said that it continued to enhance its year-on-year performance supported by additional capacities from acquisition and merger of Sathavahana Ispat operations, as well as improved execution of large export orders, leading to higher turnover and margins. Additionally, stable raw material prices and value-added product mix have contributed towards margin improvement across all products, it added.

During the quarter, the current order book of the company for iron & steel pipes and pellets is approximately $1.65 billion. Iron & Steel Pipes stood at$1,632 million while Pellet was at$15 million,

The firm has witnessed strong business opportunities across its entire product range, with robust demand in both domestic and international markets, said the company. Due to the large demand in the water sector, the firm sold around 55,000 MT rust-free pipes from its south division during Q1 FY25. The order book for the south division is about 2,45,000 MT as on 30 June 2024 as against with 173,000 MT as on 31 March 2024 for the water sector and this is included in the above order book, it added.

Export orders constitute around 32% of the total order book. In addition to traditional demand from the oil and gas sector, there is increased export demand from the water sector. This rise is mainly driven by various countries' heightened focus on urbanization and smart city development in the region. Jindal Saw, due to its diversified product portfolio, is one of the preferred suppliers catering to GCC and MENA region demand not only in the oil and gas sector but also in the water & infrastructure sector, the company stated in the press release.

The order book gives a visibility of approximately 3-4 quarters. The company expects the business environment to remain positive in the upcoming quarters despite the volatile geopolitical situation in the MENA and GCC region.

As of 30 June 2024, net institutional debt of the company (at consolidated level) was approximately Rs 4,766.8 crore as against Rs 3,959.9 crore as on 31 March 2024 including long term debt and working capital debt.

Jindal Saw is engaged in a leading manufacturer and supplier of Iron & Steel pipes and pellets having manufacturing facilities in India.

The scrip hit an all time high at Rs 654.35 in intraday today.

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