Con-call Highlights
Financial Performance:
- Standalone top line: Rs. 4786 crores
- EBITDA: Rs. 890 crores
- PBT: Rs. 619 crores
- Consolidated EBITDA: Rs. 1030 crores
- Gross income: Rs. 5697 crores
- PBT: Rs. 700 crores
- Order book: 1.4 billion
- Debt profile: GSR net debt reduced from 4,200 to 3,900
- Working capital utilization expected to go down
- QIP of Rs. 1000 crores planned for debt reduction
- Anticipated growth in revenue from Rs. 20,000 crores to Rs. 25,000 crores without significant deficit
Current Operational Performance:
- Water sector contributes approximately 68% of revenue, oil and gas 28%, and industrial sector 4-5%
- Well-balanced diversification between domestic and export markets
- Abu Dhabi facility operating at a high capacity utilization of over 80%
- Abu Dhabi facility expected to produce around 63,000 metric tons per quarter
- Jindal Saw is not directly competing with China due to differences in market segments and quality standards
- Order book follows a similar pattern to revenue distribution, with 65% domestic and 35% export
- Significant demand from MENA region for both water and oil and gas segments
- No significant demand from the American market for large diameter and GI products
Future Outlook:
- Anticipated strong performance in the next six months due to a robust order book and stable commodity prices
- Expectation of settling down of EBITDA margin from the current 18.6%
- Capacity expected to increase from 2 to 3.5 million tons per annum at the Patwara facility
- Expectation of profitable operation for the joint venture in the first year of operation
- Focus on high-value added products in the stainless steel segment
- Anticipated growth in revenue from Rs. 20,000 crores to Rs. 25,000 crores without significant deficit
Concerns:
- Potential disruptions in transportation routes due to geopolitical tensions in the Red Sea and around Iran
- Uncertainty regarding the outcome of ongoing legal proceedings
Other Points:
- No significant competition from China due to differences in market segments and quality standards
- Order book distribution follows a similar pattern to revenue distribution, with a focus on the MENA region for both water and oil and gas segments
- No significant demand from the American market for large diameter and GI products
- Anticipated strong performance in the next six months due to a robust order book and stable commodity prices
- Capacity expected to increase from 2 to 3.5 million tons per annum at the Patwara facility
- Expectation of profitable operation for the joint venture in the first year of operation
- Focus on high-value added products in the stainless steel segment
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