Management described Q4FY25 and FY25 results as “plateauing” compared to the previous year across turnover, EBITDA, PBT, and PAT.
Standalone EBITDA margin guidance: “now we are going to be in the 19 to 20 range. We maintain that, and we shall be maintaining the 19% to 20% EBITDA in the coming year as well.”
The consolidated financials were significantly impacted by accounting adjustments related to the JITF NTPC arbitration case:
Rs. 144-146 crores of amortized lease receivable from NTPC in JITF’s books written off.
Rs. 235 crores of deferred tax assets in JITF de-recognized.
Term loan: Reduced to “in the vicinity of Rs. 600 to Rs. 700 crore.”
Net worth: “in the vicinity of close to Rs. 10,000 crores.”
Working capital: Improved to “around Rs. 1,800.”
Hunting JV Profit (JSAW’s share in consolidated PAT): “about Rs. 27 crores.” The JV itself earned over Rs. 50 crore profit in its first year.
Performance in Q4FY25 and FY25 was generally similar to the prior year, indicating a plateau.
Q4FY25 saw a dip in top-line (“dip in the last quarter top line”) due to delayed budgetary allocations for Jal Jeevan Mission (JJM) projects, an anomaly as Q4 is usually the strongest.
Order book: $1.325 billion, marginally lower than $1.4 billion last year, attributed to a deliberate slowdown in order intake during Q4. DI pipe order book stood at 6.25 lakh tons, down from 6.8 lakh tons in Q3.
Q1 FY26 performance expected to be “similar to what we saw in Q4.”
Full impact of JJM project revival expected from Q2 FY26 onwards.
FY26 performance expected to be broadly similar to FY25 and FY24, with positive impacts from completed CAPEX (DI, Seamless) and cost reduction initiatives.
Growth: Expected from capacity expansions in DI and Seamless pipes, cost reduction benefits, and increased contribution from value-added products and the Hunting JV.
Decline: Q4FY25 topline saw a dip. Overall, the recent performance was described as “plateauing.”
A Single Bench High Court judgment against JITF came as a “big surprise.” An appeal has been filed with a Double Bench.
Rs. 850 crores previously received by JITF (under bank guarantees) has been repaid to NTPC using JITF’s own sources and financial support from the promoter group.
Accounting adjustments in JITF: Write-off of Rs. 144-146 cr amortized lease receivable and de-recognition of Rs. 235 cr deferred tax assets.
Debt and quasi-debt instruments in JITF are being converted to equity. Post-conversion, Jindal Saw will own 57%, Siddheshwari 42.06%, and a foreign partner <1% of JITF.
Ongoing/Completed: Capacity expansion in DI pipes at Haresamudram (+1 lakh ton) and Seamless pipes at Nashik (to 4.5 lakh tons).
Future: New projects are being evaluated, with a plan of action expected by the next quarter. Assurance that new projects will be planned to avoid cash flow strain and maintain credit rating.
“Deliberately slow down taking of orders” in Q4 due to execution slowdown. The company prefers a 9-10 month order book. Current order book: $1.325 billion. Export to domestic ratio: 23-25%.
Jal Jeevan Mission (JJM): After a slowdown, “budgetary delay of funds has all been restored. This year, the Government has released Rs. 70,000 crores.” Full impact expected from Q2 FY26.
“The demand for the water infrastructure is very good giving rise to a lot of demand for pipe.”
“A lot of opportunities going to come in water infra projects for at least next five to seven years.”