>Jindal Saw (MF GLOBAL)

As expected Jindal Saw declared strong Q1CY09 results

■ Net sales was up by 53.7% yoy at Rs 14,636 mn in Q1CY09. The company sold 99,500 ton Saw pipes (up 1%), 68,200 ton DI pipes (up 12.5%), and 18,800 ton Seamless pipes (up 22.1%) respectively. Of the total sales, 73% was contributed by domestic demand while rest from overseas market.

■ Blended margin was lower by 279bps yoy to 12.6% on account of higher raw material cost and higher share of outsourcing and traded goods, however it was flat on qoq basis.

■ Blended EBITDA was around Rs.9,896 per ton of pipes sold in Q1CY09 against Rs 9,695 in Q4CY08 and Rs8,403 in Q1CY08. EBITDA increased by 25.9% to Rs1,846 mn in Q1CY09.

■ Interest and depreciation cost was higher due to capacity expansion undertaken in CY08.

■ The company reported net profit of Rs979mn and EPS of Rs18.8 in Q1CY09 up by 14.5%.

To see full report: JINDAL SAW