JINDAL SAW LTD
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BSE Code:
500378
NSE Code:
JINDALSAW
Business Profile
Business Profile
Jindal Saw (JINDAL), promoted by the O. P. Jindal group in 1984, is into manufacturing and coating of submerged arc welded pipes (SAW pipes). The company is the largest producer of saw pipes used widely in the energy sector for the transportation of oil and gas. It is India`s first and only manufacturer of such pipes using U-O-E technology. It is a market leader and a global major in providing Total Pipe Solutions to the industry. JINDAL has diversified from a single-product company to a multi-product company manufacturing large diameter saws and spiral pipes and bends for the energy transportation sector.
The business operations of the company are structured into four SBUs, i.e., saw pipes, seamless tubes, ductile iron spun pipes and the US operations. The company has obtained technical assistance from US engineers and consultants, a subsidiary of US Steel Corporation, for its products. Further, the company has nine manufacturing facilities in Kosikalan (UP), Mundra (Gujarat), Nashik (Maharashtra) and Swastik Foils (New Delhi). Through affiliates, it also manages the largest pipe mill in the US.
The company has three subsidiaries, Hexa Securities & Finance Co., Jindal Enterprises LLC and IUP Jindal Hexa Metals. It has got a significant stake in SAW pipes Inc., USA, which has the largest pipe manufacturing capacity in US. It increased its installed capacity of iron & steel pipes by 700,000 MT during 2004-2005 taking its total installed capacity to 1,250,000 MT.
Financials
Jindal Saw registered a 98.7% growth in net profit to Rs 820.5 million for the quarter ended June 2007 from a profit of Rs 412.94 million for the quarter ended June 2006.
Net sales rose 34.01% to Rs 12,855.3 million for the quarter ended June 2007 from Rs 9,592.76 million for the quarter ended June 2006.
Total income rose 33.77% to Rs 12,869.9 million for the quarter ended June 2007 from Rs 9,620.77 million for the quarter ended June 2006.
The earnings per share (EPS) of the company stood at Rs 16.49 for the quarter ended June 2007.
Recent Developments
21-AUG-07
Jindal Saw (JSL) announced that the board of directors on August 21 approved to divest its entire interest in US operations. JSL has minority interest in US companies, which are unlisted. JSL agreed to divest its minority stakes in all the US companies at a total enterprise value of nearly USD 900 million for these companies
13-JUL-07
Leading credit rating agency ICRA re-affirmed A1+ (A one plus) reflecting highest safety rating assigned to Jindal Saw`s Rs 2 billion commercial paper/short-term debt program.
22-FEB-07
Jindal Saw has secured its single largest order aggregating to USD 355 million (approximately Rs 15,600 million) from a large Corporation in USA. The order involves supply of 42`` sub merged arc welded pipes (L Saw Pipes). The order is for app. 360 miles including double jointing and coating. The order which is scheduled to be executed by March 2008.The above order has been received from an existing large client of the company demonstrating the company`s ability to supply pipes in a high quality market. It has been bagged through a competitive bidding process and will be executed out of US operations. With this order, the company`s present order book exceeds USD 1.50 billion (app. Rs 66 billion).
Future Plans
The Company has experienced a steady growth in all the business segments and expects to have improved performance in all the segments including large diameter saw pipes, ductile iron pipes and seamless tubes. The company projects better and sustainable productivity and profitability supported by its sustained healthy order book.