India's Jindal SAW posts quarterly profit drop on lower demand

Welspun

02/05/2025 11:54

May 2 (Reuters) - India's Jindal SAW JIND.NS, which makes steel pipes for the energy, transportation and water sectors, reported a smaller fourth-quarter profit on Friday as demand dropped due to a slowdown in construction activity.

The company's consolidated net profit after tax decreased 42% to 2.91 billion rupees ($34.5 million) in the three months ended March 31.

Revenue from operations fell about 7% to 50.47 billion rupees. Sales of iron and steel pipes dropped 9.2% to 434,000 million tonnes.

For further earnings highlights, click nFWN3R93LT.

KEY CONTEXT

Domestic steel demand in the January-March quarter was lower than a year earlier as government spending, which had ramped up ahead of the 2024 national general elections, tapered off.

However, falling prices of iron ore and coking coal, key raw materials, lowered Jindal SAW's expenses, which dropped 4.7% to 46.02 billion rupees.

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
7.60
5.31
3.34
6.82
Strong Buy
3
0.60
0.81
APL Apollo Tubes
APLA.NS
37.58
24.52
21.88
67.45
Buy
15
0.91
0.34
Ratnamani Metals and Tubes
RMT.NS
28.47
18.99
13.09
18.96
Strong Buy
4
0.79
0.52
Welspun Corp
WGSR.NS
14.23
9.59
26.91
28.14
Strong Buy
3
0.82
0.65

 * 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

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG IBES

-- $1 = 84.3940 Indian rupees

Jindal Saw https://tmsnrt.rs/43bKk3q

 (Reporting by Anuran Sadhu in Bengaluru; Editing by Savio D'Souza)

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