Pipe products maker Jindal Saw today reported 90 per cent jump in its standalone net profit at Rs 104.22 crore for the first quarter ended June 30, 2015.
The company, which is part of the USD 18 billion OP Jindal Group, had clocked a net profit of Rs 54.90 crore in the year ago period, it said in a BSE filing.
Total standalone income also jumped by 66 per cent to Rs 1,912.22 crore in the April-June quarter of this fiscal from Rs 1,149.07 crore in the same quarter of 2013-14 fiscal.
The company also said that its total order book stood at around USD 965 million.
Domestic market accounted for 57 per cent of the sales and the remaining 43 per cent came from the overseas market.
During the April-June quarter of 2015-16, Jindal Saw, a diversified manufacturer and supplier of pipe products, had produced 2.47 lakh tonnes (LT) of pipes, against 1.62 LT in the year-ago period.
It produced 3.60 LT of pig iron pellets as compared to 3 LT during the same period.
On outlook, the firm said that continuous weakness in oil prices due to oversupply and the Iran nuclear deal may impact the demand for the pipes required for this sector and oil country tubular goods (OCTG) products.
However, it added that “specific and renewed focus of the government of India on infrastructure, including hydrocarbon pipeline as well as urbanisation, is expected to accelerate the demand for our products, in near future.
“We expect that India would need more pipelines primarily for water and industrial applications.”
On pellets, it said that weakness in the coal and iron ore prices along with projections for further weakness may keep a check on the sale prices of its products and thus profitability, including pellets.
In anticipation of the results which were announced after market closing, the company’s shares breached the upper circuit at Rs 78.65 per share at the BSE. It closed at Rs 78.50 apiece, up by 19.76 per cent.