India's Jindal SAW posts Q3 profit drop on muted demand

Jindal Saw

24/01/2025 08:48

Jan 23 (Reuters) - India's Jindal SAW  JIND.NS , which makes steel pipes for the energy, transportation and water
sectors, on Friday reported a lower third-quarter profit on subdued domestic demand amid delayed government projects and
slower construction activity. 
    Consolidated profit after tax dropped 5% to 5.06 billion rupees (about $59 million) in the three months ended Dec.
31. 
    Revenue from operations fell about 7% to 52.71 billion rupees.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3OJ289.
    
    KEY CONTEXT 
    The company's iron and steel pipes sales dropped 2.5% to 432,000 million tonnes in the quarter. 
    Domestic steel demand remained muted in the quarter due to lower construction activity and delays in projects,
analysts said. 
    The year-ago quarter witnessed robust demand as government spending accelerated ahead of the national general
elections, but has cooled off since then.
    
    
    PEER COMPARISON 
    
                                   Valuation (next 12     Estimates (next 12    Analysts' sentiment              
                                   months)                months)                                                
                      RIC          PE     EV/EBITDA       Revenue     Profit    Mean     No. of   Stock to       Div
                                                          growth      growth    rating*  analyst  price          yield
                                                                                         s        target**       (%)
 Jindal SAW            JIND.NS     8.17   5.66            3.28        5.13      Strong   3        0.57           0.79
                                                                                Buy                              
 APL Apollo Tubes      APLA.NS     39.99  26.14           20.56       53.94     Buy      14       0.90           0.35
 Ratnamani Metals      RMT.NS      26.22  18.35           19.03       25.93     Buy      4        0.74           0.48
 and Tubes                                                                                                       
 Welspun Corp          WGSR.NS     17.83  11.24           15.83       17.84     Buy      3        0.98           0.64
 
    * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    OCTOBER-DECEMBER STOCK PERFORMANCE 
    
    -- All data from LSEG IBES
    -- $1 = 86.1950 Indian rupees
    

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 (Reporting by Manvi Pant in Bengaluru; Editing by Eileen Soreng)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))