Operational Highlights:
- Product Mix:
- Iron & Steel Pipes and Pellets.
- Natural hedge against volatile commodity market conditions.
- Production and Sales Breakup (Q3 FY24):
- Iron & Steel Pipes: Production - 4,50,300 MT, Sales - 4,42,800 MT.
- Pellets: Production - 3,86,900 MT, Sales - 3,87,800 MT.
Order Book Position:
- Total Order Book: ~US$ 1.49 billion (Iron & Steel Pipes: US$ 1,474 million, Pellet: US$ 14 million).
- Global Market Orders: ~35% of orders.
- Order Visibility: Approximately three quarters.
Financing and Liquidity:
- Net Institutional Debt (Standalone): ~Rs. 39,190 million (as of December 31, 2023).
- Credit Ratings: CARE A1+ (Short-term), CARE AA (Long-term, Outlook Stable).
Other Highlights:
- Joint Venture - Jindal Hunting Energy Services Limited:
- Establishing India’s first premium Oil Country Tubular Goods (OCTG) threading facility.
- UAE Operations:
- Jindal Saw Gulf LLC (UAE subsidiary) witnessed higher sales of DI Pipes.
- Legal Matters:
- 27th January 2019, the final arbitration award was pronounced by the Hon’ble Arbitral Tribunal in favor of JITF, allowing various claims to the tune of Rs. 1,891 crores plus interest and applicable taxes. At present, NTPC and Jindal ITF have filed petitions which are being heard by the Hon’ble High Court of Delhi. In a hearing on 20th Dec 2023, substantial arguments have been completed by NTPC. The next hearing is scheduled for 14th and 15th February,2024.
- JSAW has filed the Scheme of amalgamation of Jindal Quality Tubular Limited (“JQTL”), Jindal Tubular (India) Limited (“JTIL”) and Jindal Fittings Limited (“JFL”) with NCLT, Allahabad bench for their approval. Shareholders and creditors of Jindal Saw Limited and all the merging entities have already approved the Scheme. The same is subject to the approval of Hon’ble NCLT Allahabad Bench. The next hearing is scheduled for 1st February,2024.
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Outlook:
The steel tubes market is driven by global industrial growth and urbanization, particularly in Asia-Pacific and the Middle East. Increased demand arises from construction, automotive, and oil and gas industries. Government investments in infrastructure, including transportation and energy projects, fuel the demand. The Middle East, influenced by the oil and gas sector, sees significant investments in infrastructure, smart city developments, and transportation networks, contributing to steel tube demand. In India, expanding oil and gas exploration, government water projects, and rural development initiatives create opportunities for pipe-makers. Geopolitical adversities in the Gulf region are not expected to impact the long-term growth outlook.
Disclosure: Invested
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