India: Jindal SAW posts strong performance in Q2FY'25

Jindal SAW's total income (standalone) for second quarter of financial year 2025 (Q2FY'25) stood at INR 47,902 million, higher by 4% y-o-y compared to INR 46,108 million in Q2FY'24, the company reported in its investors' call held on 21 October, 2024.

EBITDA (standalone) stood at 8,751 million in Q2FY'25, up by 17% y-o-y from INR 7,505 million in Q2FY'24.

Profit after tax (PAT) rose by 36% y-o-y to INR 4,770 million in Q2FY'25 against INR 3,509 million in the same quarter of the previous financial year.

The company's successful execution has led to a significant increase in sales volume, resulting in higher turnover and improved profit margins. This improvement was further fueled by an increase in exports and stable raw material prices.

Highlights:

1. Order book position: The company's current orderbook stands at around $1,618 million out of which iron and steel pipes orders are around $1,573 million and $45 million are pellet orders.

The company's order book includes nearly 32% of orders from global markets, which presents a significant opportunity for exports. These orders are scheduled to be completed in the next 9-12 months.

As a result of the high demand in the water sector in the southern region, the company has successfully sold approximately 49,000 tonnes (t) of pipes from its southern division during Q2FY'25.

Additionally, the order book for the southern division currently stands at around 245,000 t for the water sector, which is included in the above order book.

2. UAE operations: Jindal SAW Gulf LLC (UAE subsidiary) in Abu Dhabi has witnessed higher sales of DI pipes at nearly 60,600 t in Q2FY'25 from approximately 36,800 t in Q1FY'25.

Adding to its existing orders, Jindal SAW Gulf LLC boasts an impressive order book of approximately $225 million.

JSAW has a significant presence in the overseas market, with the majority of exports occurring in Latin American countries and the MENA region.

3. Joint venture with Hunting Energy Pte Ltd: Jindal SAW and Hunting Energy Services have formed a joint venture to build India's first premium Oil Country Tubular Goods (OCTG) threading facility.

Jindal Hunting Energy Services Limited commenced commercial operations in FY'25. Following the acquisition of an API license in May 2024, the company escalated production in the second quarter of FY 2025. Its current order book comprises primarily job work, valued at approximately INR 145 crore, in addition to a $1.618 million order book.

The facility has a threading capacity of 70,000+ joints of casings, tubings, accessories and weld-on- connectors.

Outlook:

Jindal SAW delivered strong Q2FY'25 results, with significant growth in revenue, EBITDA, and profit. A robust order book, including substantial exports, ensures continued revenue generation. These factors position Jindal SAW for sustained growth in the coming quarters.