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Showing posts with label Jindal Saw. Show all posts
Showing posts with label Jindal Saw. Show all posts
Wednesday, October 19, 2011
Jindal Steel Q2 cons net profit drops marginally
Jindal Steel & Power has announced the following results for the quarter ended September 30, 2011:
Standalone Results:
The Company has posted a net profit of Rs395.79 crore for the quarter ended September 30, 2011 as compared to Rs478.17 crore for the quarter ended September 30, 2010, registering a decline of 17.22%. Total Income has increased by 44.93% to Rs3341.53 crore for the quarter ended September 30, 2011 from Rs2305.61 crore for the quarter ended September 30, 2010.
Consolidated Results:
The Group has posted a net profit of Rs875.38 crore for the quarter ended September 30, 2011 as compared to Rs881.57 crore for the quarter ended September 30, 2010, posting a fall of 0.70%. Total Income rose by 44.15% to Rs4448.47 crore for the quarter ended September 30, 2011 from Rs3085.83 crore for the quarter ended September 30, 2010.
Thursday, January 06, 2011
Tuesday, July 27, 2010
Tuesday, July 20, 2010
Sunday, April 11, 2010
Jindal SAW
Investors can consider buying shares in pipe-maker Jindal SAW, whose stock trades at Rs.219 which is 11 times its CY-09 earnings. The company's positives include a complete product portfolio of welded, seamless and ductile iron (DI) pipes that may enable bidding for a wide range of projects. The integrated DI production also gives an edge to the operating margins, which are higher than most peers.
Jindal SAW produces over 1.5 million tonnes of welded pipes, 250,000 tonnes of seamless pipes and 300,000 tonnes of ductile iron pipes across four locations in India. The company has worked to expand its Indian production capacity and pay back debt since selling its US' pipe and slab operations in November 2007. Production capacities across product lines are up by 50 percent since then.
The company saw its stand-alone top line grow by 13 per cent between FY-08 and FY-09, while net profits soared by 60 per cent aided by lower raw material and interest costs.
The company has aggressively moved to pare debt on its books with gross debt for the consolidated operations moving from over Rs 1,800 crore in FY-08 to Rs 1,200 crore in FY-09. The current debt-equity ratio is estimated at 0.45:1 which should provide additional scope for borrowing to operationalise iron ore mines in Rajasthan and expand the DI pipe production facility. The standalone interest coverage ratio stands at 7.3 times.
Domestic market
DI pipes are likely to be huge beneficiaries of Rs 80,000 crore urban renewal spending on water and waste management over the next five years. The company plans to add 200,000 tonnes to its current capacity of 300,000 tonnes of DI pipe capacity by June 2011. The integrated DI production facility also boasts of superior margins than its welded pipes. These margins may receive a boost with further integration using iron ore from its Rajasthan mines, which the company estimates could save it Rs 300 crore annually from the second half of 2011.
The company's order-book stands at Rs 3,500 crore, which is about 60 per cent of FY-09 sales. Since the order-book is a source of concern, the company will have to focus on volumes instead of attempting to cherry-pick high-margin projects. This will enable it to capitalise on welded pipe capacity, which is currently running at less than 50 per cent utilisation levels. Exports-to-domestic sales ratio stood at 65:35 but with a strengthening domestic market, the scales are tipping in favour of domestic sales as demand for water and sewer pipelines drive growth.
Another major driver of domestic growth is gas pipeline projects lined up by GAIL and Reliance. These projects are expected to generate demand for roughly 2.5-3 million tonnes of pipeline. A higher domestic order-book may imply lower operating profit margins.
Steel prices
Globally, Simdex estimates point to demand for 65 million tonnes of pipeline over the next five years. Jindal SAW, with its presence in welded and seamless tubes, is well positioned to bid for domestic and global projects in OCTG (Oil-Country Tubular Goods) segment.
While domestic factors may drive immediate demand, in the long run, pipe replacement demand from the US market and global oil and gas projects incentivised by higher oil prices will be significant for volume growth, considering the strong competition for domestic projects.
Jindal SAW's raw material requirements include slabs for LSAW production and coils for HSAW production. Suppliers for both include Posco of Korea, Essar of India, besides others from Ukraine and China.
Considering that global steel capacity utilisation levels remain below 80 per cent, timely supply may not be a constraint, but volatile prices most certainly are. Steel prices have been on the rise since the start of the year due to soaring raw material costs and rising demand. This poses a threat to the 17 per cent operating margin the company enjoyed in CY-09.
Operating margins went as high as 21 per cent for the quarter ended December, thanks to low raw material costs.
Operating in oil and gas industry also requires quality accreditation which the company does have thanks to a roster of clients which include GAIL, ONGC and L&T, Brechtel, Saudi Arabian Oil company and Sinopec.
The company's investments in other O. P. Jindal group companies and cash holdings are a sweetener to this stock.
via BL
Sunday, March 21, 2010
Wednesday, January 06, 2010
Wednesday, October 21, 2009
Friday, October 16, 2009
Monday, October 05, 2009
Wednesday, September 02, 2009
Jindal SAW
We recommend a sell in Jindal Saw from a short-term perspective. It is apparent from the charts that the stock was on a medium-term uptrend from its July low of Rs 318 to August peak of Rs 591. The stock breached its medium-term uptrend-line last week and has been on a short-term downtrend. The daily price rate of change indicator is displaying negative divergence and has entered the negative territory indicating selling interest. The daily relative strength index has entered the neutral region and weekly RSI is slipping from the overbought territory. The daily moving average convergence and divergence is signalling a sell. We are bearish on the stock from a short-term perspective. We anticipate the stock’s decline to prolong until it hits our price target of Rs 480. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 559.
via BL
Thursday, April 02, 2009
Thursday, October 23, 2008
Thursday, September 25, 2008
Jindal SAW - BUY
We recommend a buy in Jindal Saw from a short-term trading perspective. It is apparent from the charts of the stock that it has been on a steady medium-term uptrend since its 52-week low of Rs 450, recorded in early July. From this bottom, the stock has appreciated almost 37 per cent. While trending up, the stock crossed over its 21 and 50-day moving averages during early August. Moreover, the stock appears to have conclusively breached the resistance level Rs 600 level. The medium-term up trendline is intact. The daily relative strength index is on the verge of re-entering in to the bullish zone from the neutral region. The daily moving average convergence and divergence is featuring in the positive territory. We are bullish on the stock from a short-term perspective. We expect the stock’s up move to continue further until it hits our price target of Rs 675 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 584 level.
Monday, August 04, 2008
Saturday, August 02, 2008
Sunday, July 13, 2008
Wednesday, June 18, 2008
Friday, May 09, 2008
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