Jindal Saw drops after poor Q4 earnings

The Q4 result was announced after market hours on Monday, 27 May 2013.

Meanwhile, the S&P BSE Sensex was up 3.16 points or 0.02% at 20,033.93.

On BSE, 16,000 shares were traded in the counter as against average daily volume of 38,873 shares in the past one quarter.

The stock hit a high of Rs 76.20 and a low of Rs 75 so far during the day. The stock had hit a 52-week low of Rs 74 on 23 May 2013. The stock had hit a 52-week high of Rs 138.65 on 5 July 2012.

The stock had underperformed the market over the past one month till 27 May 2013, sliding 3.34% compared with the Sensex's 3.86% rise. The scrip had also underperformed the market in past one quarter, declining 14.08% as against Sensex's 4.59% gain.

The small-cap company has equity capital of Rs 55.24 crore. Face value per share is Rs 2.

Jindal Saw's net profit declined 13.7% to Rs 193.41 crore on 8.1% growth in net sales to Rs 5612.86 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

On consolidated basis, Jindal Saw reported net loss of Rs 18.87 crore in FY 2013, as against net profit of Rs 189.11 crore in FY 2012. Net sales rose 12.1% to Rs 6755.97 crore in FY 2013 over FY 2012.

As of 31 March 2013, Jindal Saw's standalone net debt stood at Rs 3100 crore including ECB/long term loans and fund based working capital and other unsecured loans. The loan includes Rs 900 crore on account of buyers' credit, the company said. To meet the funds requirement for capital expenditure (capex) etc, the company intends to raise additional long term funds, Jindal Saw said in a statement.

With regard to its future business outlook, Jindal Saw said that the company would start getting the benefits of the investments made/to be made in various projects including iron ore and pallet plant which would add to the turnover and profitability of the company in the time to come.

Jindal Saw's board of directors at a meeting held on Monday, 27 May 2013, recommended dividend of Re 1 per share for FY 2013.

Jindal Saw is the leading production hub of saw pipes primarily used for transportation of oil and gas.

Powered by Capital Market - Live News