MUMBAI (Reuters) - Jindal Saw Ltd. posted a 50 percent rise in net profit in the first quarter to December 2006 and expected a marginal improvement in profitability in the current quarter, a senior official said.
The steel pipes and tubes maker reported a net profit of 601.3 million rupees in the Oct-Dec quarter compared with 402.1 million rupees a year ago.
The growth in Oct-Dec net profit was due to an improvement in processes, better profitability in ductile pipes and in its U.S. operations, Vinay Gupta, vice-president in-charge of finance, told Reuters on Wednesday.
"Our capital expenditure programme was directed towards increasing production and profitability," Gupta said. Earlier, Jindal Saw said it will invest up to 6 billion rupees on expansion and modernisation of its plants.
The company, which has orders worth $1.2 billion, said the pipes sector is seeing robust demand in all product segments.
Jindal Saw said it expected significant growth in submerged arc-welded, seamless and ductile iron pipe industry.
Shares in the company closed 0.3 percent lower at 459.70 rupees in the Mumbai market.
Wed Jan 31, 2007 6:21 PM IST
Source : Reuters India
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