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Jindal Saw sees good times ahead
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Thursday, 08 Nov 2012

Mr Indresh Batra MD of Jindal Saw during an interview with Economic Times said that the next 2 quarters look strong

Q - When you say next two quarters look strong, would you quantify the kind of growth that you would expect?

A - We did about 800,000 tonnes of pipe in the last financial year. This year we should do about 1.1 million tonnes or thereabouts and in this quarter we did about 256,000. There is about 20% to 25% volume growth. Our Abu Dhabi plant which is a ductile iron pipe plant where the trial runs are going on should generate a good tonnage because that is a very large market for the kind of pipes we make and this is an ordinary manufacturing facility. It would also be driven by the fact that our mining operation which commenced last month should be ramped to 30,000 tonnes per month by November, which would meet the requirement for our ductile iron plant at Mundra for blast furnace. Combining this we see that the situation in terms of margins and volume expansion should drive good numbers going ahead.

Q - What about realizations for the quarter? Have prices seen a decline given global trend and also if you could highlight the order book position and how you see things panning out on that front?

A - In terms of pipe sold we made about INR 8500 thousand blended EBITDA across all our three segments of large diameter, oil and gas pipe, ductile iron pipe, and seamless pipe which is higher than by about INR 1000 which we reported last quarter. Prices of the pipe have not really declined because there is a lag effect. We have an order book which runs for about three quarters. So those prices are fixed. Hence, there is an advantage of commodity prices in between if we have a lag impact in terms of secured intervals.

Source - Jindal Saw


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