core sector communique

Jindal SAW Limited Q2 PAT at Rs 1021 million

~ EBITDA margin at 23% as compared to 22.18% ~

 

Kolkata, November 08, 2010 - Jindal SAW Ltd. a total pipe solution company in the country, today announced the unaudited (standalone) financial results for the 2^nd Quarter ended September 30^th, 2010.

 

Blended EBITDA of the Second quarter ended 30th Sep 2010, is app. Rs 13,621 PMT of total pipes sold as against blended EBITDA, for the previous quarter ended 30th June 2010, of Rs 12,160 PMT. The EBITDA margin was marginally higher for Sep 2010 quarter at 23.06% as compared to 22.18% for the previous quarter ended June 2010 as there was insignificant operations in HSAW product.

 

Commenting on the financial performance, Mr. Indresh Batra, Managing Director, Jindal SAW Ltd., said, “It is important to note that the governmet grants available to the company’s unit in Gujarat were available till March 2010 and the period thereafter does not included the positive  benefit of the same. In view of the same, the profitability in Sep 2010 was comparatively better then the same quarter in the previous year.”

 

The order book till October 2010 is app. US$ 780 million and includes export orders of app. 40%. The Major exports are in Middle East, Gulf region and South East Asia. Moreover, we expect that seamless pipes demand will also increase gradually with the increase in drilling activities as well as industrial capex including power sector and automobiles. The company is now able to produce high quality pipes and thus making efforts to increase its presence in various parts of globe to sell these pipes,” he further added.

 

Demerger of the Investment Undertaking of the Company

Currently, the business of the Company is being carried out in three distinct undertakings:

 

(a)   Pipe manufacturing business undertaking - engaged in the business of manufacturing of LSaw & H Saw Pipes and coating of pipes, seamless tubes, and DI (Ductile Iron) pipes.

(b)   Infrastructure Management and Allied Businesses undertaking – engaged in the business of water, waste water and solid waste management, domestic transportation and logistics and transportation equipment fabrication as well as steel strip rolling business.

(c)   Investment business undertaking (“Investment Undertaking”) – engaged in the investment business that includes investment in shares and other securities of group companies and granting of loans and advances to group companies.

About Jindal SAW : Jindal SAW Ltd is a part of USD 12 billion O.P. Jindal Group, the fourth largest industrial house in India. The group also has the distinction of having global footprints.

Today commanding a market leader position it is a global major providing Total Pipe Solutions to the ever-growing needs of the industry.

 

Jindal SAW Ltd. is the leading production hub of SAW Pipes primarily used for transportation of oil and gas. With integrated facilities at multiple locations Jindal SAW has diversified into a multi-product company, manufacturing large diameter Submerged Arc Welded pipes and spiral pipes and bends for energy transportation sector; Carbon, alloy and stainless steel Seamless tubes manufactured by conical piercing process for industrial application and Ductile Iron pipes for water and sewage transportation. Besides this Company provides value added products and services like anti-corrosion coatings for pipe and bends, induction bends and connector casings. ISO 9002, 14001, 18001 certification awarded bespeak of Company’ continued commitment to the welfare, safety and security of employees as well as the custodian of best business practices.