OBJECTIVE OF THE STUDY To have the brief knowledge about the Jindal Saw Ltd. Company. To know the Financial Position of the company. To analyze the past five years performance of the Company To know the market position of the Company. To do the comparison with other competitors. To know the turnover of the company. To know the product details and export of the Company. To have the Jindal Industries overview. To know the Growth Plans of the Company.

RESEARCH METHODOLOGY The research report is done through the Secondary data only which includes, Annual Reports of the Company, Company’s websites, journals and other research papers.

Research type is a Descriptive type of Research.

LIMITATIONS OF THE STUDY Time constraints.

Lack of knowledge.

Limited availability of material.

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INDUSTRY OVERVIEWJSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. Part of the US $ 18 billion OP Jindal Group this young, agile and responsive company is constantly expanding its capabilities to fuel its fairy tale journey that has seen it grow to a US $ 3.6 billion business conglomerate. The company has committed investments exceeding US $ 30 billion in the future and has several business initiatives running simultaneously across continents.

Led by Mr Naveen Jindal, the youngest son of the legendary Shri O.P. Jindal, the company produces economical and efficient steel and power through backward and forward integration.

From the widest flat products to a whole range of long products, JSPL today sports a product portfolio that caters to markets across the steel value chain. The company produces the world's longest (121-meter) rails and it is the first in the country to manufacture large-size parallel flange beams.

JSPL operates the largest coal-based sponge iron plant in the world and has an installed capacity of 3 MTPA (million tonnes per annum) of steel at Raigarh in Chhattisgarh. Also, it has set up a 0.6 MTPA wire rod mill and a 1 MTPA capacity bar mill at Patratu, Jharkhand, a medium and light structural mill at Raigarh, Chhattisgarh and a 2.5 MTPA steel melting shop and a plate mill to produce up to 5.00-meter-wide plates at Angul, Odisha.

An enterprising spirit and the ability to discern future trends have been the driving force behind the company's remarkable growth story. The organisation is wedded to ideals like innovation and technological leadership and is backed by a highly driven and dedicated workforce of 15000 people.

JSPL has been rated as the second highest value creator in the world by the Boston Consulting Group, the 11th fastest growing company in India by Business World and has figured in the Forbes Asia list of Fab 50 companies. It has also been named among the Best Blue Chip companies and rated as the Highest Wealth Creator by the Dalal Street Journal. Dun & Bradstreet has ranked it 4th in its list of companies that generated the highest total income in the iron and steel sector.

Alongside contributing to India's growth story the company is driving an ambitious global expansion plan with its sights set on emerging as a leading transnational business group. The company continues to capitalise on opportunities in high growth markets, expanding its core areas and diversifying into new businesses. In Oman (Middle East), the company has set up a US $ 500 million, 1.5 MTPA gas-based Hot Briquetted Iron (HBI) plant. It has now added a 2 MTPA integrated steel plant.

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In Africa, the company has large mining interests in South Africa, Mozambique, Namibia, Botswana and Mauritania and is expanding into steel, energy and cement. In Australia, the company is investing in Greenfield and Brownfield resource sector companies and projects to supplement its planned steel and power projects in India and abroad.

In Indonesia, the company has invested on the development of two Greenfield exploration assets. It is also exploring investment opportunities in the power and infrastructure sector in Indonesia.

The company endeavours to strengthen India's industrial base by aiding infrastructural development, through sustainable development approaches and inclusive growth. It deploys its resources to improve infrastructure, education, health, water, sanitation, environment and so on in the areas it operates in. It has won several awards for its innovative business and social practices.

Key Executives

Chairman Emeritus Savitri Devi Jindal

Chairman P R Jindal

Managing Director Sminu Jindal

Director Devi Dayal

Board of DirectorsChairman Emeritus Savitri Devi Jindal

Chairman P R Jindal

Managing Director Sminu Jindal

DirectorDeviDayal Kuldip Bhargava

Whole-time Director H S Chaudhary

Director

SKGupta RAJ KAMAL AGARWAL

Company Secretary Sunil Jain

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DirectorRavinderNathLeekha Girish Sharma

Whole Time Director & CEO Neeraj Kumar

Additional DirectorTriptiArya Sanjeev Shankar

JINDAL SAW LTD.CORPORATE OVERVIEWSAW Pipes (SPL), a member of the Jindal Group, is the only company in India that manufactures UOE pipes in technical collaboration with UEC Pittsburgh of USA. It manufactures UOE submerged arc welded steel tubes and cold rolled strips of various grades. The products manufactured by the company find use in critical high pressure applications like oil and gas distribution.

Jindal SAW Ltd. is a part of the USD 18 billion O.P. Jindal Group, one of the country's top most industry houses and the foremost indigenous steel producers and exporters. It started operation in the year 1984, when it became the first company in India to manufacture Submerged Arc Welded (SAW) Pipes using the internationally acclaimed U-O-E technology.Jindal SAW Ltd. is in a commanding position in India’s tubular market, being the undisputed leader.With integrated facilities at multiple locations and an ever expanding market opportunity, Jindal SAW Ltd. has diversified from a single product company to a multi-product company, manufacturing large diameter submerged arc pipes and spiral pipes for the energy transportation sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured by conical piercing process used for industrial applications; and Ductile iron (DI) pipes for water and wastewater transportation. Besides these, the company also provides various value added products like pipe coatings, bends and connector castings to its clients.Over the years Jindal SAW has continued to gain the confidence and trust of its stakeholders - from employees, associates, shareholders and people whose lives have benefitted by the company's endeavours. With its vision of sustainable development firmly in place, Jindal SAW has played a leading role in developing livable cities across the world - that in turn has helped transform the lives of people staying in them. 

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Ensuring timely transportation of oil, gas and water, Jindal SAW helps residents and organizations in numerous cities function efficiently. The pipes produced by the company are energy efficient; reduce dependence on fossil fuels, and help conserve naturalresources like water. 

At the very core of Jindal SAW is imprinted the conviction of never being content with the success attained and it is constantly striving for newer horizons. New boundaries, new challenges and new opportunities keep the company driven to surge ahead. Venturing forward into different areas of businesses with Jindal ITF, a subsidiary of Jindal SAW, the company is making rapid progress in urban services sectors with:

Water, Wastewater and Solid Waste Management Domestic Transport and Logistics Transportation Equipment Fabrication

Having identified the immense potential offered by these sectors for the future, JITF has diversified into five business verticals in these areas: JITF Ecopolis, JITF Aquasource, JITF Vector, JITF Shipyards, and Jindal Rail Infrastructure. 

MILESTONES

1984 Founded in 1984

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1986 Commissioning of first and only UOE Pipe Mill manufacturing LSAW Pipes in KosiKalan, India with a capacity of 250,000 M.T P.A, located about 1200 Kms from nearest west coast port of India

1988 API Line Pipe production commences

1989 First order for ONGC casing Pipe completed

1992/93 Three major offshore projects awarded by ONGC under international competitive bidding - Italian and Japanese being L2 and L3 bidders

1994 Seamless Pipes and Tubes Division commissioned at Nashik.  First Coating plant commissioned at KosiKalan

1995 Received first export order

1998 First Induction bending plant commissioned at KosiKalan

2000 Commissioning of second LSAW pipe manufacturing facility as 100% export oriented unit using JCO forming process at Nanakapaya, Mundra to meet the export market with a capacity of 300,000 MT per annum close to Port Mundra – The first major private port on west coast of India.  Internal coating plant commissioned at KosiKalan Commissioning of second Coating plant at Nanakapaya – Port Mundra

2002 Concrete weight coating plant commissioned at Nanakapaya – Port Mundra

2003 Commissioning of third Coating plant at Samaghogha, Mundra

2004 Commissioning of third Pipe mill manufacturing LSAW Pipe using JCO forming process in Samaghogha, Mundra with a capacity of 250,000 MT per annum.

2005 Commissioning of fourth Pipe mill manufacturing HSAW (Spiral) Pipe at Samaghogha, Mundra with capacity of 150,000 MT per annum

2005 Start up of Integrated Pipe Unit Ductile Iron Pipe manufacturing plant of 200,000 capacity along with Blast Furnace of 250,000 MT per annum capacity and a Coke Oven plant

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2008 Commissioning of fifth & sixth Pipe mill manufacturing HSAW (Spiral) pipe at Bellary - Karnataka and Samaghogha-Mundra with a combined capacity of 390,000 MT per annum. Second Induction bending plant commissioned at Samaghogha, Mundra

2009 Commissioning of seventh Pipe mill manufacturing LSAW using JCO forming in Nanakapaya - Port Mundra with capacity of 300,000 MT per annum

2011 Commissioning of 8th Pipe mill manufacturing HSAW (Spiral) pipe at KosiKalan, Mathura, U.P. with capacity of 150,000 MT per annum This mill is commissioned to cater to the water sector

PRODUCTS

Product Outside Diameter (D) (mm)

Wall Thickness(t) (mm)

Annual Capacity

Hot Finished Carbon/ Alloy Steel Seamless Tubes and Pipes. 33.40 to 177.80 3.38 to 25.00 80000 MT

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Seamless Casing and Tubing conforming to API 5CT. 60.30 to 177.80 4.00 to 19.05

120000 MTSeamless Drill Pipes & Greens conforming to API 5D. 60.30 to 168.30 6.45 to 12.70

Cold Finished Carbon/ Alloy Steel Seamless Tubes and Pipes. 19.05 to 140.00 1.50 to 19.05 20000 MT

Anti Corrosion 3 LPE / FBE Coating. 2 to 14 as per DIN 30670 1million

SQM

LOCATIONSMundra I & IICountry: IndiaState: GujaratBy Rail     Nearest railway station at Ghandhidham, Gujarat - 50 Kms.By Road   15 Kms from the Gujarat State Highway.By Sea      6 Kms from Mundra Port  (Gujarat)Products    LSAW Pipes (J-C-O Process)

Kosi-KalanCountry: IndiaState: Uttar PradeshBy Rail     Through Mathura – 40 KmsBy Road   On the National Highway No.2Products   LSAW Pipes (J-C-O Process)  Large Radius Bends & related Anti-corrosion

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coatings

Nashik   Country: IndiaState: MaharashtraBy Rail   50Kms.From Rail Head.By Road 25 Kms. From the National Highway (NH 8)By Sea    200 Kms. From Mumbai Port (Maharashtra)Products  SEAMLESS Pipes and Tubes

LOCATIONAL ADVANTAGEThe plants are spread over strategic geographical locations in India. Being close to the ports gives them an additional locational advantage. 

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CLIENTSDOMESTICAban Constructions Limited Assam Gas Co. Limited

Bharat Petroleum Corporation LimitedBridge & Roof Co. (India) Ltd.

Cairn Energy Engineers India Limited

Essar Constructions LimitedGAIL (India) Limited

Gujarat Gas Co. Limited Hindustan Petroleum Corporation Limited

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IBP LimitedIndian Oil Tanking Limited

Indian Oil CorporationIVRCL Infrastructure & Projects Limited

Oil and Natural Gas Corporation LimitedPetronet India Limited

Petronet MHB LimitedPetronet VK Limited

Raunaq International LimitedReliance Industries Limited

Raunaq International LimitedRamky Infrastructure Ltd.

SHELL Hazira LNG Pvt. Ltd.Subhash Project & Marketing Limited

Gannon Dunkerley&Co.Ltd.Delhi Jal Board

Gujarat Water Supply And Sewerage BoardMaharashtra JeevanPradhikaran

Public HealthEngineering Department, RajasthanKirloskar Brothers Limited

Larsen & ToubroUttar Pradesh Jal Nigam, Lucknow

Directorate Of Supplies & Disposal, HaryanaUttaranchalPeyJal Nigam, Dehradun

Madhya Pradesh LaghuUdyog Nigam LimitedPublic Health Engineering Department, Bihar

Drinking Water Supply And Sewerage Board, Ranchi.Punjab Water Supply & Sewerage Board

Karnataka Urban Water Supply & Sewerage Board, Bangalore.

INTERNANTIONAL CLIENTS

AGIP, NigeriaAbu Dhabi Gas Industries Limited (GASCO), UAE

Anglo American, ChileBurullus Gas Co., Egypt

China National Petroleum Company, ChinaCenter Point Energy Gas Transmission, USA

DODSAL, UAE East Gas Co. Ltd., Egypt

Egyptian natural Gas Company(GASCO), EgyptHyundai Heavy Industries, Korea

International Petroleum Investment Comp. Abu DhabiJoannouAndParaskevaidesLimited, Greece

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Kuwait Oil Company, KuwaitMan GHH Oil And Gas, Germany

National Iranian Oil Co., IranOil Tools PTE Ltd, Singapore

Oman Gas Company – OmanPEDEC, Iran

PEDCO IranPETRONAS - Malaysia

PETROJET, Egypt petroleum Development Oman LLC, Oman

Petroleum Development Oman LLC, OmanPETROCHINA, China

Petroleum Development Oman LLC, OmanQatar Petroleum, Qatar

Questar Gas Management Co., USARashid Petroleum Company (RASHPETCO), Egypt

Saipem, ItalySamsung Heavy Industries, South Korea-Cheveron Project

Saudi Aramco, Saudi ArabiaSaudi Arabian Texaco, Kuwait

Shell, The NetherlandsSichuan Petroleum Administration, China

South Oil Company, ItaqSnamprogetti, ItalySyrian Gas Company, SyriaSyrian Petroleum Company, SyriaState Company for Oil Projects ,IraqSummit Daging Joint Venture, BangladeshTECHNIP Germany Gmbh, GermanyTOTAL E & P, Indonesie, IndonesiaGreenray International Ltd, AlgeriaNishizawa Ltd.-JapanAllied Trading International (Pvt) Ltd, Sri LankaBoom Construction, QatarDerwent Sand, AlgeriaBoru Spain, SpainQatar Arab Contractor,QatarSNI, FranceHydropro SARL, Lebanon

FIVE YEARS ANALYSIS

 Results Consolidated

No. of Months

Year Ending

12Dec-08*

15Mar-10*

12Mar-11*

12Mar-12*

12Mar-13*

  EQUITY SHARE DATAHigh Rs 1,225 225 234 211 174

Low Rs 217 36 170 109 78

Sales per share (Unadj.) Rs 1,027.6 259.9 166.0 218.5 244.9

Earnings per share (Unadj.) Rs 64.0 24.6 16.1 6.8 -0.7

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Diluted earnings per share Rs 12.1 24.3 16.1 6.8 -0.7

Cash flow per share (Unadj.) Rs 80.1 30.4 22.0 13.4 7.2

Dividends per share (Unadj.) Rs 5.00 1.25 1.00 1.00 1.00

Adj. dividends per share Rs 0.94 1.24 1.00 1.00 1.00

Dividend yield (eoy) % 0.7 1.0 0.5 0.6 0.8

Book value per share (Unadj.) Rs 523.6 131.1 147.3 133.8 132.8

Adj. book value per share Rs 98.8 129.9 147.3 133.8 132.8

Shares outstanding (eoy) m 52.12 273.61 276.23 276.23 276.23

Bonus/Rights/Conversions BC FV2BC BC - -

Price / Sales ratio x 0.7 0.5 1.2 0.7 0.5

Avg P/E ratio x 11.3 5.3 12.5 23.4 -184.7

P/CF ratio (eoy) x 9.0 4.3 9.2 11.9 17.4

Price / Book Value ratio x 1.4 1.0 1.4 1.2 0.9

Dividend payout % 7.8 5.1 6.2 14.6 -146.5

AvgMkt Cap Rs m 37,579 35,706 55,798 44,197 34,833

No. of employees `000 NA NA NA NA NA

Total wages/salary Rs m 1,599 2,803 2,867 3,524 4,327

Avg. sales/employee RsTh NM NM NM NM NM

Avg. wages/employee RsTh NM NM NM NM NM

Avg. net profit/employee RsTh NM NM NM NM NM

  INCOME DATA

Net Sales Rs m 53,558 71,103 45,863 60,364 67,647

Other income Rs m 298 574 608 1,014 828

Total revenues Rs m 53,856 71,676 46,471 61,378 68,475

Gross profit Rs m 7,070 12,534 8,619 6,684 6,037

Depreciation Rs m 840 1,586 1,638 1,818 2,190

Interest Rs m 2,154 2,579 1,820 1,655 2,356

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Profit before tax Rs m 4,374 8,943 5,769 4,226 2,319

Minority Interest Rs m -28 -7 2 7 11

Prior Period Items Rs m 102 -60 0 0 0

Extraordinary Inc (Exp) Rs m 0 0 0 -1,408 -2,005

Tax Rs m 1,113 2,154 1,324 933 513

Profit after tax Rs m 3,334 6,723 4,447 1,891 -189

Gross profit margin % 13.2 17.6 18.8 11.1 8.9

Effective tax rate % 25.5 24.1 23.0 22.1 22.1

Net profit margin % 6.2 9.5 9.7 3.1 -0.3

  BALANCE SHEET DATACurrent assets Rs m 38,514 28,188 39,300 47,990 48,321

Current liabilities Rs m 23,372 10,104 26,294 35,074 38,025

Net working cap to sales % 28.3 25.4 28.4 21.4 15.2

Current ratio x 1.6 2.8 1.5 1.4 1.3

Inventory Days Days 113 41 136 130 96

Debtors Days Days 86 43 103 94 91

Net fixed assets Rs m 22,733 27,433 31,154 41,489 55,031

Share capital Rs m 521 547 553 553 553

"Free" reserves Rs m 21,550 34,665 39,325 35,181 34,320

Net worth Rs m 27,288 35,871 40,694 36,960 36,675

Long term debt Rs m 9,442 10,807 7,266 18,935 28,438

Total assets Rs m 62,039 59,120 76,466 93,255 107,129

Interest coverage x 3.0 4.5 4.2 3.6 2.0

Debt to equity ratio x 0.3 0.3 0.2 0.5 0.8

Sales to assets ratio x 0.9 1.2 0.6 0.6 0.6

Return on assets % 8.8 15.7 8.2 3.8 2.0

Return on equity % 12.2 18.7 10.9 5.1 -0.5

Return on capital % 18.0 24.5 15.8 8.0 4.1

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Exports to sales % 43.8 36.4 34.4 44.5 47.3

Imports to sales % 51.2 35.2 48.6 38.2 35.6

Exports (fob) Rs m 23,456 25,916 15,793 26,887 31,987

Imports (cif) Rs m 27,422 25,013 22,284 23,061 24,092

Fx inflow Rs m 26,320 25,989 15,878 26,978 32,101

Fx outflow Rs m 31,874 27,190 23,766 25,145 27,188

Net fx Rs m -5,554 -1,201 -7,887 1,833 4,913

  CASH FLOW

From Operations Rs m 3,178 16,948 -7,988 -2,958 2,220

From Investments Rs m -5,463 -10,489 -5,932 -6,012 -14,821

From Financial Activity Rs m 1,531 -6,045 10,045 9,793 12,548

Net Cashflow Rs m -753 414 -3,875 822 -53

8 QUATERS ANALYSIS Interim Results

No. of Months 3  3  3  3  3  3  3  3 

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Qtr. Ending Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14

Net Sales Rs m 12,904 16,369 17,227 9,801 12,070 12,294 17,096 13,636

Other income Rs m 184 225 225 190 188 208 145 306

Turnover Rs m 13,088 16,594 17,452 9,991 12,258 12,502 17,241 13,942

Expenses Rs m 11,302 14,390 15,642 8,771 10,646 10,812 15,439 12,009

Gross profit Rs m 1,602 1,980 1,586 1,030 1,424 1,482 1,657 1,627

Depreciation Rs m 387 416 386 361 454 513 539 622

Interest Rs m 323 377 418 383 430 547 692 594

Profit before tax Rs m 1,076 1,412 1,007 476 728 630 572 717

Tax Rs m 157 223 248 97 54 80 100 231

Profit after tax Rs m 919 1,189 759 379 674 550 472 486

Gross profit margin % 12.4 12.1 9.2 10.5 11.8 12.1 9.7 11.9

Effective tax rate % 14.6 15.8 24.6 20.4 7.4 12.7 17.5 32.3

Net profit margin % 7.1 7.3 4.4 3.9 5.6 4.5 2.8 3.6

Diluted EPS Rs 3.3 4.3 2.7 1.4 2.4 2.0 1.7 1.8

Diluted EPS (TTM) Rs 13.5 14.2 14.4 11.8 10.9 8.6 7.5 7.9

* Results ConsolidatedInterim results

Source: Company Annual Reports, Regulatory Filings, Equitymaster

Key RatiosAnnual Ratios (%)

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1-Year 3-Years 5-Years

Growth

Revenue 12.07 -1.53 -

Net Profit -110.58 -130.85 -

EPS -109.93 -130.29 -

Book Value -0.77 0.43 -

Average

Operating Margin 10.15 14.34 15.07

Net Margin -0.29 4.11 5.57

Return on Networth -0.54 5.32 10.15

Return on Investment 3.31 7.84 12.77

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Interim Growth Ratios (%)QoQ YoY YTD

Quarterly

Revenue -20.24 39.13 39.13

Operating Profit 5.62 58.57 58.57

Net Profit 14.03 53.88 53.88

EPS 14.03 - -

TTM

Revenue 7.48 -2.14 -2.14

Operating Profit 11.24 0.63 0.63

Net Profit 16.08 -25.41 -25.41

EPS 65.43 -7.71 -7.71

Peer Comparison

Market Cap 

Revenue (R Cr)

Net Profit 

Net Margin

(%)

RoE (%)

Price to Book

Price to Earnings

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(R Cr) (R Cr)

Jindal Saw 2,309.23 5,509.59 144.27 2.58 5.32 0.65 -

Maharashtra Seamless

1,914.51 1,205.17 97.12 7.66 7.13 0.86 18.86

Welspun Corp 2,210.08 4,867.61 -1.08 -0.02 1.33 0.78 30.11

COMPETITORS (Macro View)

Name Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

Jindal Saw 84.85 2,343.76 5,509.59 144.27 6,971.88

Welspun Corp 87.35 2,296.85 4,867.61 -17.54 6,960.31

Mah Seamless 291.50 1,953.04 1,205.17 97.12 2,827.34

Ratnamani Metal 382.05 1,783.54 1,326.10 142.81 765.99

APL Apollo 283.20 663.78 2,057.32 26.18 598.91

Man Industries 76.70 437.98 1,005.29 8.90 1,248.56

Surya Roshni 98.35 431.08 3,030.97 53.36 1,501.69

Oil Country 65.25 288.99 358.64 10.42 434.48

Gandhi Spl Tube 163.25 239.95 83.53 17.31 150.63

Prakash Steelag 122.50 214.38 944.22 16.55 366.54

PSL 28.10 149.76 208.66 -142.14 4,146.88

Innoventive Ind 23.80 141.95 389.79 -434.66 844.68

Zenith Birla 1.70 22.32 280.22 -44.62 464.85

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Comparison with other Competitors (Micro View)

Balance Sheet ------------------- in Rs. Cr. -------------------

Jindal Saw

Welspun Corp

Mah Seamless

Ratnamani Metal

APL Apollo

Mar '13 Mar '12 Mar '13 Mar '13 Mar '13

Sources Of FundsTotal Share Capital 55.25 113.89 35.27 9.28 22.32Equity Share Capital 55.25 113.89 35.27 9.28 22.32Share Application Money 0.00 0.00 0.00 0.00 4.04Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 3,673.38 3,481.33 2,787.46 637.43 274.46Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 3,728.63 3,595.22 2,822.73 646.71 300.82Secured Loans 2,295.25 2,598.61 3.06 57.45 47.39Unsecured Loans 948.00 766.46 1.56 61.83 250.68Total Debt 3,243.25 3,365.07 4.62 119.28 298.07Total Liabilities 6,971.88 6,960.29 2,827.35 765.99 598.89

Jindal Saw

Welspun Corp

Mah Seamless

Ratnamani Metal

APL Apollo

Mar '13 Mar '12 Mar '13 Mar '13 Mar '13

Application Of FundsGross Block 3,502.19 3,885.88 849.84 651.85 209.93Less: Accum. Depreciation 945.95 832.48 215.17 261.36 24.46Net Block 2,556.24 3,053.40 634.67 390.49 185.47Capital Work in Progress 1,011.20 197.95 672.04 22.86 2.68Investments 826.53 3,403.94 697.16 29.11 77.97Inventories 1,471.11 1,649.85 513.29 232.73 177.55

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Sundry Debtors 1,238.57 1,092.76 321.55 251.19 165.44Cash and Bank Balance 62.93 640.94 7.83 60.04 9.86Total Current Assets 2,772.61 3,383.55 842.67 543.96 352.85Loans and Advances 1,003.63 1,018.64 258.66 42.27 114.27Fixed Deposits 0.00 0.00 0.00 0.00 0.00Total CA, Loans & Advances 3,776.24 4,402.19 1,101.33 586.23 467.12Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 1,128.56 3,933.23 268.35 229.63 115.38Provisions 69.77 163.94 9.51 33.07 18.95Total CL & Provisions 1,198.33 4,097.17 277.86 262.70 134.33Net Current Assets 2,577.91 305.02 823.47 323.53 332.79Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 6,971.88 6,960.31 2,827.34 765.99 598.91

Contingent Liabilities 2,419.19 4,635.08 755.26 164.97 13.36Book Value (Rs) 134.98 157.84 400.20 139.33 132.95

Source : Dion Global Solutions Limited

OPERATIONAL & FINANCIAL HIGHLIGHTSThe sales break up for 2nd Quarter ended 30th Sep 2013 is given hereunder:

PRODUCT Quantity Sold (MT)- app.

PIPES- Large Dia Pipes- L Saw 36,500

- H Saw 35,000

- Ductile Iron 55,900

Pipes- Pig Iron 34,500

- Seamless Tubes 33,600

TOTAL PIPES SOLD 195,500

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IRON ORE Etc- Pellets 134,000

Geographical Break up - Sale in India - 76 % - Sale outside India (exports) - 24 %

The Production for Q1 and Q2 in FY 13-14 are given hereunder:

Product Production- Q2MT

Production- Q1MT

Pipes 207,000 204,000Pellets 137,000 37,000Iron Ore Concentrate 102,000 90,000

Operational performance:During 2nd Quarter ended 30th September 2013:

Saw Pipe Strategic Business Unit: The segment witnessed lower production and sales due to customer’ delivery schedules, lower order book and heavy rains. The Company executed more of domestic orders and export constitutes 25% of LSaw Pipes sales. Company expects additional orders and improvement in business and operations in subsequent quarters.

DI and Pig Iron Strategic Business Unit:Company produced app. 61,000 MT of DI pipes and 26000 MT of Pig Iron. The production and sales of DI pipes is ramping up with stabilization of second DI plant. DI exports in this quarter were app. 15%.

Seamless Strategic Business Unit: The activities in seamless pipes & tubes segment improved in second quarter. During this quarter, the company also catered to some drill pipe orders and as a result the EBITDA in this segment has improved. Company expect the situation to improve gradually. The production of seamless pipes in 2nd quarter was app.34,000 MT and exports sale was app. 57%.

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Iron Ore Mines and Pellet Strategic Business Unit:Production and sales of Pellet have increased in 2nd quarter. The same could have been higher but got impacted to some extent due to extended monsoons. Company expect the operations to improve quarter by quarter.

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Order Book Position The current order book is app. 475 million (app. Rs 3,000 Crores), the break up is as

under: Large Diameter Pipes – US$ 230 Mio Ductile Iron Pipes – US$ 215 Mio Seamless Pipes – US$ 30 Mio

The orders for Large Diameter Pipes are slated to be executed by March 2014 and in case of Ductile Iron Pipes the same are slated to be executed over next 12-18 months or more. Company has participated in various bids and likely to get orders in phases. The current order book includes export of app 25%. The major exports orders are from Middle East, Gulf region and South East Asia and Far East.

Financing and Liquidity

a) As at 30th Sep 2013, net debt in the Company (standalone) was app. Rs 36,400 mio (app. USD 588 mio.) including ECB/ long term loans and fund based working capital and other unsecured loans. The loan includes buyer’s credit of app. Rs 9,100 mio (app. USD 146 Mio). The loans have increased marginally in this quarter as compared to 1st Quarter ended 30th June 2013 due to

(i) rupee depreciation and

(ii) Capital expenditures and some increase in working capital.

b) To meet the long term funds requirements, the Company intends to raise additional long term funds.

STATUS OF NEW PROJECTS/ CAPITAL EXPENDITURES

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a)Small Dia DI Pipe Plant: Ductile Iron Plant (small dia DI pipe plant) with blast furnace capacity of app. 200,000 MTPA was put to commercial operation in the quarter ended 31st March 2013. Production has started and the capacity is being gradually ramped up as the production process gets stabilized. The Coke Oven facility and the incremental captive power generation facility related to the Ductile Iron Plant has now been commissioned. These facilities are expected to stabilize fully in the coming months.

b)Greenfield Ductile Iron pipe facility in United Arab Emirates:The Greenfield Ductile Iron Pipe facility in UAE is now commercially operational. The facility has received necessary product and quality approvals. With the concerted efforts its product has been approved in four countries in the region and the efforts to get pre approval in other countries are on way. The current book stands at app. 60,000 MT and company expects the same to improve gradually. The facility has reached to breakeven level.

c) Iron Ore Concentrate and Pellets:The Pellet plant in Bhilwara has stabilized and its products are being well accepted in the market. The production of concentrate and Pellet will ramp up gradually in the coming months.

d) Additional Projects/ new capital expenditures: To meet the requirements of the Lease agreement as well as for maximum utilization of iron ore concentrate, Company is adding a Sponge iron and Steel Ingot plant with capacity of app. 250,000 in Rajasthan. These plants should be in place in FY 14-15.

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FINDINGS The Company is India’s most diversified manufacturer and supplier of pipe products

for the energy, water industry and other industrial applications. Their customers include most of the world’s leading oil and gas companies, municipal

corporations as well as engineering companies engaged in constructing oil and gas gathering, water transportation system, power and automobiles facilities.

Their principal products include (a) large diameter SAW pipes (Longitudinal Submerged Arc Welded (LSAW) and Helically Submerged Arc Welded (Spiral/ HSAW), (b) Seamless Tubes, and (c) Ductile Iron (DI) pipes.

Company’s manufacturing facilities are located in various parts in western, northern and southern part of India.

They are one of the largest global producers of Ductile Iron pipes with manufacturing facilities in India, UAE and Europe.

As at 30th Sep 2013, Net debt of the Company (standalone) was app. Rs 36,400 mio (app. USD 588 mio.) including ECB/ long term loans and fund based working capital and other unsecured loans.

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The current order book includes export of app 25%. The major exports orders are from Middle East, Gulf region and South East Asia and Far East.

They have got major share in theMarket. Company have location advantage as their competitive advantage. Company’s major competitors are Welspun Corp, Mah Seamless, Ratnamani Metal &

APL Apollo.

BankersAxis Bank Ltd

Canara Bank

Credit Agricole Cor & Inv

HDFC Bank Ltd

ICICI Bank Ltd

ING Vysya Bank Ltd

Karnataka Bank Ltd

Punjab National Bank

Standard Chartered Bank

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State Bank of India

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Syndicate Bank

United Bank of India

Auditor

N C Aggarwal & Co

BIBLOGRAPGY

www.jindalsaw.com

www.iilf.com

References of Annual Report

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