|12 MAY 2011
||Jindal SAW Limited Q4 PAT at Rs. 80.19 cr
Jindal SAW Ltd., a total
pipe solution company in the country, today announced the unaudited
(standalone) financial results for the fourth quarter ended March 31st,
Blended EBITDA of the quarter ended 31st March, 2011, is approximately
Rs. 8,212 PMT of total pipes sold whereas the EBITDA for full year 2010 –
11 is at Rs. 11, 350 PMT of pipes sold. This quarter witnessed lower
production and higher sales.
As per the company release the profitability of the Company for the
March 2011 quarter remains under pressure due to.
(i) execution of low
margin orders including HSAW orders of GAIL
(ii) Higher freight cost on
few export consignments
(iii) Higher input and other costs for all the
Even though the demand for pipe products is expected to improve
gradually, the increase in supply has outpaced the growth in demand.
Further, the prices for inputs is increasing on the back of higher
cocking coal prices, higher petroleum prices as well as increasing
financing costs. Therefore in the coming quarters too the company
expects pressure on revenue and profitability. To counter the impact of
these issues, the company is working towards cost control, improvement
in operational efficiency, effective utilization of resources and on the
top of that giving high priority to the implementation of the iron ore
Order Book Position
• As at April, 2011, the order book is above US$ One Billion, slated to
be executed by end of March 2012:
o Large Diameter Pipes – US$ 790 Mio
o Ductile Iron Pipes – US$ 185 Mio
o Seamless Pipes – US$ 25 Mio
• The company has participated in various bids and is likely to get
orders in phases. The current order book includes export orders of app.
55%. The major exports orders are from Middle East, Gulf region and
South East Asia, China and Far East.