Jindal Saw hits new high

Jindal Saw is one big gainer on the BSE today morning on the back of its excellent earnings for Q1FY25. From its close of Rs.602.45, it opened over 3% higher at Rs.620.60 and went on to hit a new 52-week high at Rs.650, up 8%.

Despite the not-so-good domestic demand, strong orders from Middle East and North Africa helped the company end Q1 with a 70.5% (YoY) rise in PAT at Rs.416 crore. This was on a 12% rise in total income at Rs.4985 crore and EBITDA came in at Rs.885 crore.

Being an election quarter, the spend was less but last fiscal the domestic demand was significant on account of the pre-election year.

The Middle East and North Africa (MENA) region contributed 32% of the total orders in Q1.

The current order book of the company (for Iron & Steel pipes and pellets) is US$ 1.65 billion (Previous quarter US$ 1.53 billion).. Due to the large demand in the water sector, the company sold 55,000 MT rust-free pipes from its south division during Q1FY25.

The order book for the south division is 245,000 MT as on 30th June 2024 (173,000 MT as on 31st March 2024) for the water sector and this is included in the above order book.

The order book gives a visibility of appx. 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 at 30th June 2024, net institutional debt of the Company (at standalone level) was Rs. 3992 crore (Rs. 3255 crore on 31st March 2024) including long term loans and fund based working capital borrowings.