Jindal Saw Conference Call – Notes

Financial Highlights:
For the quarter ended Jun’07 Jindal Saw reported a 34% rise in Net sales revenue to Rs 1285.53 crore. The OPM (Operating Profit Margin) increased by 100 basis points to 12.5%. Operating profit for the quarter ended Jun’07 stood at Rs 160.59 crore, which was 45% higher as compared to corresponding previous quarter last year. The ensuing PAT for the quarter ended Jun07 was Rs 82.05 crore which was 99% higher when compared with corresponding previous quarter last year.

The order book is approx. US$ 1.225 billion (Indian book approx. US$ 725 million and app. US$ 500 million at USA branch). The orders are slated to be executed by June 2008.

Targets sales revenue to the tune of Rs 5000- 5200 crore for the year ending Sept’07. The sales target for the year ending Sept’08 and Sept’09 is around Rs 6000-6200 crore and Rs 7200 crore respectively.

Capacity utilisation of Kosikana plant, which is longitudinal plant, is 45-50%.
Capex to the tune of Rs 450 crore upto Sept’08. The total Interest cost for the year ended Sept’07 is expected to be around Rs 120 crore. The Depreciation for the FY 2007-08 would be around Rs 75-80 crore.