India's Jindal SAW posts third straight quarterly profit decline on lower demand

Jindal Saw

05/08/2025 11:24

Aug 5 (Reuters) - India's Jindal SAW JIND.NS, a manufacturer of steel pipes for the energy, transportation and water sectors, reported a decline in first-quarter profit on Tuesday, weighed down by lower domestic demand amid a slowdown in construction activity.

Consolidated net profit after tax dropped 3.9% to 4.24 billion rupees ($48.3 million) in the three-month period ended June 30.

Revenue from operations fell about 17.3% to 40.85 billion rupees.

For further earnings highlights, click nFWN3TX0PA.

KEY CONTEXT

The April-June quarter witnessed weak demand for steel pipes as early onset of monsoon dampened construction activity, causing delays in various projects. India's industrial output during April-June grew marginally by 2%, compared with an increase of 5.4% last year.

Additionally, tighter money supply reduced liquidity for dealers and contractors, weakening their purchasing capacity, according to two analysts.

The company's iron and steel pipes sales dropped 19% year-on-year to 326,000 million tonnes in the quarter.

Its peer, APL Apollo Tubes reported a higher quarterly profit, but lowered its full-year volume growth outlook due to  weak demand, early monsoon, and weak exports due to geopolitical tensions.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Jindal SAW
JIND.NS
6.44
4.55
25.16
14.64
Strong Buy
3
0.60
0.97
APL Apollo Tubes
APLA.NS
34.10
23.23
16.30
40.67
Buy
13
0.89
0.36
Ratnamani Metals and Tubes
RMT.NS
25.42
17.58
13.84
22.11
Strong Buy
4
0.77
0.54
Welspun Corp
WGSR.NS
15.40
10.31
25.23
7.63
Strong Buy
4
0.81
0.56

* 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

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG IBES

-- $1 = 87.8100 Indian rupees

Jindal Saw Q1 performance https://tmsnrt.rs/45A4khi

 (Reporting by Anuran Sadhu in Bengaluru; Editing by Sherry Jacob-Phillips)

 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))