Key highlights from Jindal Saw Limited (JINDALSAW) Q4 FY22 Earnings Concall
Q&A Highlights:
- Pratiksha Daftari from Aequitas Investment asked about near term impact of the export duty for the orders already booked. Neeraj Kumar CEO said the export stuck in pipeline are small in nature. JINDALSAW added that the impact on the company is insignificant.
- Pratiksha Daftari from Aequitas Investment enquired about DI outlook. Neeraj Kumar CEO answered that the company is seeing a good outlook on DI. One is in 2024 general election, Jaljeevan mission of govt. of India and states following of various schemes are supporting the DI business for JINDALSAW.
- Arijit Dutta of Kotak MF asked about competition for the company in DI pipe as a segment. Neeraj Kumar CEO clarified that JINDALSAW is constantly moving the quality and the product bar up, which will make the new comers to catch up.
- Arijit Dutta of Kotak MF asked about the cost of setting up a DI facility. Neeraj Kumar CEO answered that to set up a DI facility of the capacity and nature, JINDALSAW has 0.5 million ton in Gujarat. Today the replacement cost of that would be upward of INR1,000 crores, excluding blast furnace.
- Aashav Patel with Molecule Ventures PMS enquired that in FY22 DI pipe segment, what proportion of sale is coming from older and lower price contracts. Neeraj Kumar CEO said that in current the entire order book of USD180 million for DI is all old contract spill over to FY23. In the current year, proportion of fixed price old contract is very low.
- Aashav Patel with Molecule Ventures PMS asked that except Sathavahana, if the company is planning to undergo DI expansion over the existing facility. Neeraj Kumar CEO said currently the focus is on Sathavahana. If it turns successful, the path will be one and if not it will be different, need to wait and watch.