Jindal Saw Ltd

- The company is undertaking significant capex over the next 2-3 years, including projects in Saudi Arabia and Abu Dhabi. - Current net debt stands at approximately INR 3,400 crores. - There is an appetite from lenders to provide long-term debt for setting up projects, with Indian lenders also interested through GIFT City or direct MENA presence. - Long-term debt currently is around INR 525 crores (standalone) and INR 650 crores (consolidated), with room for increase. - The management sees the balance sheet capable of handling higher debt levels during the capex phase. - No specific mention of equity fundraising in the transcript. - Capex for current and next year is expected in the range of INR 500-600 crores per year. - The company aims to optimize debt-to-EBITDA levels around 2-2.5 times including working capital.

- Capex of around INR 500-600 crores expected for current fiscal year across Indian facilities, focused on debottlenecking, operational efficiency, and staff infrastructure. - Previous years' capex ranged from INR 700-800 crores. Next year expected around INR 400-500 crores. - Significant new projects in Middle East: - Abu Dhabi seamless pipe project, 100% owned, undergoing cost and debt-equity optimization. - Saudi Arabia saw pipe joint venture with 51% stake; lower balance sheet impact due to JV structure. - No major brownfield or greenfield projects planned in India; focus on utilizing existing capacity. - Strategy to set up complementary facilities in MENA region to support Abu Dhabi plant and overcome bottlenecks. - Overall focus on derisking business model amid uncertain macro environment.

- Demand outlook is cautiously optimistic with expected pick-up post-monsoon for Jal Jeevan Mission-related orders, which have been slow but expected to revive soon. - Seamless pipe segment domestic demand is around 1.5 million tons with growth expected from deepwater exploration projects backed by government initiatives. - Margins in seamless pipes are expected to improve due to robust demand. - Export markets in MENA region are currently impacted by geopolitical tensions and shipping issues; normalcy expected to restore order flows within 1–2 years. - Domestic ductile iron pipe demand shows some overcapacity but should improve with increased state funding and Jal Jeevan Mission Phase 2. - Capex planned around INR500-600 crores annually to support growth, especially in MENA region projects (Abu Dhabi and Saudi). - Industry-wide capacity additions expected to be absorbed due to rising demand in oil & gas and water infrastructure segments. - Overall, volumes and sales expected to grow as geopolitical and logistic issues resolve, and government projects gain momentum.

- Earnings and profitability faced a decline in FY '26 due to weak ductile iron pipe segment and export shipment deferments caused by MENA conflict. - Export shipments to MENA, which have higher margins, are postponed, leading to short-term profitability impact; these shipments are expected to resume in FY '27, improving earnings. - Margin expansion is expected in stainless steel pipes (seamless and welded) from the second half of FY '27 by targeting higher-quality, value-added products. - Demand and utilization are constrained currently due to project execution delays, especially in water infrastructure (e.g., Jal Jeevan Mission). - No significant new capacity addition in ductile iron pipes reduces risk of overcapacity. - Sales and profit growth contingent on regional stability, resumption of exports, and policy execution on infrastructure projects. - Long-term EBITDA expected to recover towards previous levels (~INR3,500 crores) supporting 2-2.5x debt-to-EBITDA ratio.

- The company is currently fully booked for a couple of quarters, with no immediate capacity available for new orders (Page 12). - There is a backlog of export consignments on hold due to issues in the MENA region, expected to resume once these are resolved (Page 16). - Order execution for Jal Jeevan Mission orders has slowed due to liquidity/funding issues at state level but is expected to pick up post-monsoon or once states formalize funding mechanisms (Pages 15-16). - Steel pipe orders supplied under state-backed funding are ongoing and form the majority of recent sales (Page 16). - New projects in Saudi and Abu Dhabi are underway, with capacity additions expected to support future demand (Page 14). - Overall, pending orders exist but execution is delayed mainly due to external factors like funding delays and geopolitical issues in export regions (Pages 13-16).