Shares of Jindal Saw surged 8.5% in intraday trade on Thursday to hit a more than five-year high of Rs 177.15 on the BSE, given the company’s healthy outlook.
Shares of the steel products company were quoted at their highest level since January 2018. In contrast, the S&P BSE Sensex was down 60,103 at 10:22 am.
Jindal Saw shares have jumped 94% in the past three months after the company reported a multiple-fold increase in its consolidated after-tax profit for the December 2022 quarter (Q3FY23) due to robust operating performance of Rs 143.23 crore. The company posted a profit after tax of Rs 68 lakh in the same period last year (Q3FY22).
Consolidated operating income rose 48.6% to Rs 5,157.9 crore in the quarter, compared to Rs 3,471 crore in the corresponding quarter of the previous fiscal.
The company’s profitability improved significantly due to aggressive demand offtake and superior execution in key pipeline categories. However, it said extreme volatility in foreign exchange rates (Indian rupee to US dollar) continued to affect the company’s net profit in the third quarter of the current financial year.
Jindal Saw is a leading global manufacturer and supplier of Steel Pipe Products, Pipe Fittings and Pellets with manufacturing plants in India, the USA and Abu Dhabi (UAE).