Jindal Saw Conducted their conference call for Q4: FY 2021
Here are the key takeaways π
Here are the key takeaways π
Business Updates:
β’ All the factories are on operational mode now.
β’ Oxygen plant is decided to be set up in the 3 of the co. plants for medical emergency.
β’ Co. has decided to merger the subsidiaries with Jindal Saw.
β’ Q4 can be considered as a base quarter from now.
β’ All the factories are on operational mode now.
β’ Oxygen plant is decided to be set up in the 3 of the co. plants for medical emergency.
β’ Co. has decided to merger the subsidiaries with Jindal Saw.
β’ Q4 can be considered as a base quarter from now.
β’ Company has lowered its rate, hence the interest cost have come down.
β’ With diversified product portfolio, co. did got benefit in pellet segment netting of iron & steel sector.
β’ Stainless steel business also expected to grow well.
β’ Order book currently is 80cr.
β’ With diversified product portfolio, co. did got benefit in pellet segment netting of iron & steel sector.
β’ Stainless steel business also expected to grow well.
β’ Order book currently is 80cr.
Pellet:
β’ Co. wish to have growth until price of iron & steel segment coming down.
β’ While most of states has delayed their pipe based tender due to volatility in raw material price.
β’ Co. wish to have growth until price of iron & steel segment coming down.
β’ While most of states has delayed their pipe based tender due to volatility in raw material price.
DI Pipe:
β’ Co. has own blast furnace. Entry price is iron ore lumps.
β’ Portable water is showing good market to co.
β’ Margins is expected to improve with higher demand, from water grid project, and lack of DI manufacturer.
β’ Fitting can even raise margin as there few player.
β’ Co. has own blast furnace. Entry price is iron ore lumps.
β’ Portable water is showing good market to co.
β’ Margins is expected to improve with higher demand, from water grid project, and lack of DI manufacturer.
β’ Fitting can even raise margin as there few player.
Seamless:
β’ In terms of capacity co. has expanded to 16 inches (Nashik plant to 16 inch).
β’ Nagothane plant is ready to give carbon steel pipes upto 8 inches.
β’ Volume growth is expected to kick in.
β’ In terms of capacity co. has expanded to 16 inches (Nashik plant to 16 inch).
β’ Nagothane plant is ready to give carbon steel pipes upto 8 inches.
β’ Volume growth is expected to kick in.
Gas Cylinder:
β’ Jindal has done recent breakthrough, and co. intent of become one of largest supplier to car manufacturer for CNG cylinder. It is import substitution product.
β’ While product is complex as well to handle.
β’ Jindal has done recent breakthrough, and co. intent of become one of largest supplier to car manufacturer for CNG cylinder. It is import substitution product.
β’ While product is complex as well to handle.
Raw Material:
β’ Jindal Saw is not concerned as steel prices will going to correct.
β’ Water sector is seeing slowing down with increase in cost. However water grid, water body linking and long transmission will thrive well.
β’ Oil prices are settle down.
β’ Jindal Saw is not concerned as steel prices will going to correct.
β’ Water sector is seeing slowing down with increase in cost. However water grid, water body linking and long transmission will thrive well.
β’ Oil prices are settle down.
Future Focus:
β’ Company is improving the marketing facility, and installing equipment for better operation.
β’ Target of order book is 100cr.
β’ Company is improving the marketing facility, and installing equipment for better operation.
β’ Target of order book is 100cr.
Subsidiary:
β’ Abu Dhabi has crossed 2Lac tones of manufacturing which is best for the unit. With strong order book, co. has plan to come close 2.5 Lac Tone in Abu Dhabi unit (20Mil$ EBIDTA contri)
β’ There is gap in demand - supply mismatch in US. Subsi. over there can work well
β’ Abu Dhabi has crossed 2Lac tones of manufacturing which is best for the unit. With strong order book, co. has plan to come close 2.5 Lac Tone in Abu Dhabi unit (20Mil$ EBIDTA contri)
β’ There is gap in demand - supply mismatch in US. Subsi. over there can work well
CAPEX:
β’ CAPEX would be limited to maintenance capex and certain capacity balancing. There would be no major capex this year.
β’ CAPEX would be limited to maintenance capex and certain capacity balancing. There would be no major capex this year.
Debt Plan:
β’ In March 2020 co. has debt of 3550cr, which was decreased 2900cr.
β’ On Consol basis debt was decreased from 5000 cr in 2020 to 4200 cr 2021.
β’ Natural repayment coming up (500-600cr) which will decrease the debt.
β’ In March 2020 co. has debt of 3550cr, which was decreased 2900cr.
β’ On Consol basis debt was decreased from 5000 cr in 2020 to 4200 cr 2021.
β’ Natural repayment coming up (500-600cr) which will decrease the debt.
Competitor:
β’ Mgmt has unique all over product with respect to product portfolio.
β’ Individual product competitor:
- Large Diameter has Welspun.
- Seamless has MSL
- DI has Electro steel and now Tata.
β’ However Jindal has highest capacity in all the product
β’ Mgmt has unique all over product with respect to product portfolio.
β’ Individual product competitor:
- Large Diameter has Welspun.
- Seamless has MSL
- DI has Electro steel and now Tata.
β’ However Jindal has highest capacity in all the product
Working Capital:
β’ QoQ is increased because of increase in operation. Trade Finance and Inventory was increased with increase in operation leading to higher Working Capital.
β’ QoQ is increased because of increase in operation. Trade Finance and Inventory was increased with increase in operation leading to higher Working Capital.
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