Saturday, May 9, 2009

>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