Jindal Saw Limited — Investor Meet, 03-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Jindal Saw reported a Q3FY25 revenue of ₹4,521 crore, a decrease from ₹4,790 crore in the previous quarter and slightly down from ₹4,785 crore in the same quarter last year. Despite the dip in top line, EBITDA improved to ₹882 crore, above the ₹875 crore from the prior quarter, showcasing solid operational resilience. Profit Before Tax (PBT) and Profit After Tax (PAT) remained stable at ₹626 crore and ₹623 crore, respectively, each reflecting minor fluctuations. Year-to-date figures show a revenue of ₹13,728 crore compared to ₹13,227 crore a year prior, alongside PBT growth of 25% and PAT at 29%.

**Future Outlook and Growth Drivers:** Management noted that revenue plateauing signals a transition towards higher-margin products, such as seamless and premium connections, indicating a favourable shift in product mix. Upcoming CAPEX projects include a new coke oven battery and doubling seamless capacity, expected to contribute positively to earnings over the next 3 to 5 months.

**Order Book and Operational Updates:** The order book presents a stable outlook, currently comprising 22% export orders. Although there’s a perception of plateauing, management anticipates the order flow from new projects could enhance completion timelines and overall revenue, particularly following improvement in the geopolitical situation in the MENA region.

**Analyst Q&A Insights (Detailed):**

- **Revenue and Profitability:** Analysts sought clarity on revenue projections with management confident that improved receivables and completion of large contracts will impact revenue positively.

- **Market Position and Competitive Landscape:** The discourse highlighted the company's strong market position, especially in the water and oil sectors. Analysts inquired about competitive pressures, with management emphasizing a seller's market sustaining pricing power.

- **Operational Challenges or Risks:** There were concerns around project delays; management reassured that significant infrastructure funding is expected in the upcoming budget and that they are not heavily exposed to regulatory risks.

- **Capex and Capital Allocation:** Management stressed a conservative approach to debt, aiming to maintain a healthy debt-to-equity ratio while expanding operations.

- **Strategic Priorities and Long-Term Vision:** Analysts emphasized the need for clarity on CAPEX commitments in new markets; management hinted at robust plans for domestic and international growth.

**Market or Regulatory Updates:** Management noted a shift in infrastructure spending from the central government to state-led projects, with expectations for robust funding in the next budget, indicating a strategic pivot that could enhance growth.

**Strategic Focus Areas:** Management remains focused on enhancing operational efficiency and exploring new CAPEX opportunities both domestically and internationally, especially within the MENA region and oil and gas sectors.

**Investor Insight:** The combination of improved margins, a robust order book, and strategic CAPEX initiatives suggest a 'buy' stance, particularly for investors with medium- to long-term horizons, given the anticipated positive developments in the infrastructure space and stable demand dynamics.