India’s Jindal SAW posts twofold growth in Q3 profit; order book swells

BENGALURU (Reuters) – India’s Jindal SAW on Tuesday reported an over twofold growth in its third-quarter profit, as demand in the Middle East and North Africa (MENA) region remained steady and its order book grew.

The company posted a consolidated profit after tax of 5.32 billion rupees ($64.1 million) for the quarter ended Dec. 31, 2023 from 2.14 billion rupees a year ago.

The company, which makes pipes for the energy, transportation and water sectors, said its order book for iron & steel pipes rose to $1.49 billion from $1.32 billion a year ago.

“Higher exports, improved volumes and range-bound raw material prices have contributed towards margin improvement,” the company said in a statement.

Exports accounted for over 35% of its order book, which analysts said helped offset the effect of falling domestic steel prices, as global prices remained elevated.

Its UAE-based unit recorded an order book of $135 million. Jindal SAW’s international clients include companies like Shell, Saudi Aramco, and Schaeffler Group.

“We expect the business scenario to remain positive in the coming quarters despite the volatile geopolitical situation in the MENA and GCC (Gulf Cooperation Council) region.” it said.

Sales of pipes jumped 15%, while production rose 19%, the company said.

Its revenue from operations jumped nearly 10% to 56.56 billion rupees, while its raw material costs dropped 5%.

Shares of the company jumped 2.9% to hit a record high after results.

($1 = 82.9850 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Varun H K)