The shares of the manufacturer of iron and steel pipes gained up to 9 percent after the company’s net profit and revenue increased by 70 percent and 12 percent YoY, respectively in Q1FY25.
With a market capitalization of Rs 20,523.42 crore, the shares of Jindal Saw Limited were trading at Rs 641.85 per share, increasing around 6.54 percent as compared to the previous closing price of Rs 602.45 apiece.
Reason for rise:-
The share of the company has seen positive movement after Jindal Saw Ltd’s revenue plummeted by 9 percent on a quarter-on-quarter basis from Rs. 5,425 crores in Q4FY24 to Rs. 4,939 crores in Q1FY25. Further, revenue magnified by 12 percent yearly from Rs 4,410 crores in Q1FY24 to Rs. 4,939 crores in Q1FY25.
Jindal Saw Ltd’s net profit decreased by 13 percent on a quarter-on-quarter basis from Rs. 480 crores in Q4FY24 to Rs 416 in Q1FY25. Further, on a year-on-year basis also net profit magnified drastically by 70 percent from Rs. 244 crores in Q1FY24 to Rs. 416 crores in Q1FY25.
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Order book:-
As per the recent investor presentation, the company has a $1.5 billion order book, with 70% originating from local sources and 30% from exports, as per previous presentations. The organization targets cost reductions, innovation, and productivity improvements.
Moreover, the company has sold 1,87,000 MT pipes from its south division during FY 2024 and the order book for the south division is 1,73,000 MT for the water sector is included in the above order book.
Expansion plan:-
The business anticipates volumes to expand at a 10-15 percent rate, accompanied by market-driven pricing. It has set a capex of around Rs 500-600 crores for FY25. Furthermore, the demand for spiral pipes in the ‘Middle East’ area is high due to numerous infrastructure initiatives.
Company profile:-
Jindal Saw Limited is an Indian manufacturer and supplier of iron and steel pipes and pellets, with plants in India, the US, and the UAE. The company’s segments include Iron & Steel, Waterways Logistics, and Others.
Written by:- Abhishek Singh
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