MIRA
INFORM REPORT
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Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
MAHARASHTRA SEAMLESS LIMITED |
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Registered Office : |
Pipe
Nagar, Village-Sukeli, N.H.17, B.K.G. Road, Taluka Roha, District Raigad-402126,
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.05.1988 |
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Com. Reg. No.: |
80545 |
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CIN No.: [Company
Identification No.] |
L99999MH1988PLC080545 |
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Legal Form : |
Public Limited Liability Company. The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer of Seamless pipes and tubes. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 37000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track. Directors are well known industrialists. Their means are large. Payments are correct and as per commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions. It can be regarded as a promising
business partner |
LOCATIONS
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Registered Office : |
Pipe
Nagar, Village-Sukeli, N.H.17, B.K.G. Road, Taluka Roha, District
Raigad-402126,Maharashtra |
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Tel. No.: |
91-2194-238511/12 238567/69 |
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Fax No.: |
91-2194-238513 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No 30 , Sector 44, Gurgaon - 122001 |
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Tel. No.: |
91-124-2574325,
2574326 |
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Fax No.: |
91-124-2574327 |
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E-Mail : |
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Head Office : |
106, Nilgiri Apartments, 9, Barakhamba
Road, NewDelhi-110001 |
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Tel. No.: |
91-11-23718367,
23710862 |
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E-Mail : |
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Factory : |
SEAMLESS & ERW PIPES: Pipe Nagar, Village - Sukeli, N.H.17,
B.K.G. Road, Taluka Roha, Distt. Raigad-402126, Maharashtra |
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Factory : |
WIND POWER: Village Nivkane, Taluka Patan,
District Satara, Maharashtra |
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Branch Office |
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DIRECTORS
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Name : |
Mr. D P. Jindal |
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Designation : |
Chairman |
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Name : |
Mr. Saket Jindal |
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Designation : |
Managing Director |
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Name : |
Mr. U.C. Agarwal |
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Designation : |
Director |
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Name : |
Mr. D. K. Parikh |
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Designation : |
Director |
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Name : |
Mr. S.D. Sharma |
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Designation : |
Director |
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Name : |
Mr. H. K. Khanna |
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Designation : |
Director |
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Name : |
Mr. S. P. Raj |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Sunil Agarwal
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Designation : |
Director – Steel |
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Name : |
Mr. H K Khanna |
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Designation : |
Director –
Marketing |
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Name : |
Mr. S P Raj |
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Designation : |
Wholetime
Director |
KEY EXECUTIVES
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Name : |
Mr. Pradeepta Kumar Puhan |
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Designation : |
Company Secretary |
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Name : |
Mr. Anil Jain |
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Designation : |
CFO and VP
[Finance] |
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Name : |
Mr. R K Abrol |
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Designation : |
Vice President –
Works |
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Name : |
Mr. P. K. Puhan |
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Designation : |
Compliance
Officer |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Seamless pipes and tubes. |
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Products : |
Item Code No. (ITC Code) 7304.00 Product Description Seamless Pipes & Tubes
Item Code No. (ITC Code) 7305.11 Product Description ERW Pipes and Tubes
Item Code No. (ITC Code) 8502.31 Product Description Wind Power Item Code No. (ITC Code) 7307.00 Product Description Pipe Fittings |
PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
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Seamless Pipe |
MT |
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225000 |
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ERWPipe |
MT |
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200000 |
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Wind Power |
Kwh |
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61320000 |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
3000 |
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Bankers : |
Ř
State Bank
of Patiala Ř
State Bank
of Bikaner & Jaipur Ř
Standard
Chartered Bank Ř
HDFC Bank
Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kanodia Sanyal & Associates Chartered Accountants New Delhi |
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Joint Venture Company : |
Hydril Jindal International Private Limited |
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Associates/Subsidiaries : |
Ř Jindal Drilling & Industries Limited Ř Jindal Pipes Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40,000,000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 millions |
|
20,000,000 |
Preference Shares |
Rs.10/- each |
Rs.200.000 millions |
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GRAND TOTAL |
|
Rs.600.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34,966,000 |
Equity Shares |
Rs.10/- each |
Rs. 349.660
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
349.700 |
288.200 |
288.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
8891.300 |
3850.900 |
2839.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
9241.000 |
4139.100 |
3128.100 |
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LOAN FUNDS |
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1] Secured Loans |
98.700 |
381.100 |
352.700 |
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2] Unsecured Loans |
983.200 |
4548.500 |
731.400 |
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TOTAL BORROWING |
1081.900 |
4929.600 |
1084.100 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
10322.900 |
9068.700 |
4212.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2800.100 |
2644.400 |
2291.200 |
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Capital work-in-progress |
57.900 |
163.000 |
407.900 |
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INVESTMENT |
538.200 |
204.800 |
193.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2512.800
|
2755.200 |
1330.900 |
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Sundry Debtors |
1995.800
|
1399.800 |
964.500 |
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Cash & Bank Balances |
3232.200
|
3191.700 |
21.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
396.200
|
309.400 |
160.000 |
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Total
Current Assets |
8137.000
|
7656.100 |
2476.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1056.800
|
1356.500 |
964.300 |
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Provisions |
153.500
|
243.100 |
192.400 |
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Total
Current Liabilities |
1210.300
|
1599.600 |
1156.700 |
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Net Current Assets |
6926.700
|
6056.500 |
1320.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10322.900 |
9068.700 |
4212.200 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
15196.100
|
10769.500
|
8672.400
|
|
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Other Income |
314.500
|
182.300
|
120.400
|
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Total Income |
15510.600 |
10951.800 |
8792.800 |
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Profit/(Loss) Before Tax |
3527.500
|
2068.500
|
1262.400
|
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Provision for Taxation |
1188.600
|
677.600
|
410.900
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Profit/(Loss) After Tax |
2338.900
|
1390.900
|
851.500
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
NA |
840.469 |
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Imports : |
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Total Imports |
NA |
NA |
1268.863 |
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Expenditures : |
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Raw Materials |
8145.000
|
6352.700
|
5744.000
|
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Excise Duty |
1296.400
|
1107.700
|
978.300
|
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Power & Fuel Cost |
930.200
|
695.500
|
536.300
|
|
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Other Manufacturing Expenses |
762.900
|
488.300
|
228.100
|
|
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Employee Cost |
169.800
|
131.900
|
105.200
|
|
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Selling and Administration Expenses |
338.200
|
214.100
|
123.800
|
|
|
Miscellaneous Expenses |
10.000
|
6.200
|
4.200
|
|
|
Stock Adjustments |
133.600 |
[306.900]
|
[332.600]
|
|
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Interest & Financial Charges |
35.000
|
48.300
|
38.100
|
|
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Depreciation |
162.000
|
145.500
|
105.000
|
|
Total Expenditure |
11983.100 |
8883.300 |
7530.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
3519.300
|
3856.200
|
|
Other Income |
|
108.900
|
58.200
|
|
Total Income |
|
3628.200
|
3914.400
|
|
Total Expediture |
|
2699.300
|
3022.300
|
|
Operating Profit |
|
928.900
|
892.100
|
|
Interest |
|
6.800
|
5.600
|
|
Gross Profit |
|
922.100
|
886.500
|
|
Depreciation |
|
44.300
|
44.300
|
|
Tax |
|
291.600
|
257.100
|
|
Reported PAT |
|
581.000
|
581.600
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.45 |
0.83 |
0.42 |
|
Long Term Debt-Equity Ratio |
0.43 |
0.79 |
0.39 |
|
Current Ratio |
5.15 |
3.34 |
2.08 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.31 |
3.45 |
3.95 |
|
Inventory |
5.77 |
5.27 |
7.93 |
|
Debtors |
8.95 |
9.11 |
10.36 |
|
Interest Cover Ratio |
101.79 |
43.83 |
34.13 |
|
Operating Profit Margin(%) |
24.51 |
21.01 |
16.21 |
|
Profit Before Interest And Tax Margin(%) |
23.44 |
19.66 |
15.00 |
|
Cash Profit Margin(%) |
16.46 |
14.27 |
11.03 |
|
Adjusted Net Profit Margin(%) |
15.39 |
12.92 |
9.82 |
|
Return On Capital Employed(%) |
36.74 |
31.88 |
32.82 |
|
Return On Net Worth(%) |
34.96 |
38.28 |
30.58 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Maharashtra Seamless a flagship
of Rs.10000 millions. a part of the well-diversified DP Jindal group, manufactures
carbon and alloy steel seamless pipes at its plant in Roha, Maharashtra in
technical collaboration with Mannesmann Demag, Germany. The major applications
for seamless pipes are in oil exploration, boilers, ball- earings,
ollerbearings, automobiles, fertiliser, petrochemicals, etc.
In 1991-92, it became the third company in the world and the first in the
country to set up a 50,000-tpa plant to manufacture state-of-the-art seamless
pipes and tubes by the cross-piercing elongation process. In 1992-93, the
company enhanced its plant capacity from 50,000 tpa to 100,000 tpa by
installing balancing equipment.
In September 2000 the Company's new project of Electric Resistance Welded (ERW)
Pipes for producing 4" OD to 21" OD ERW Pipes with an installed
capacity of 50,000 M.T. per annum at Pipe Nagar, Maharashtra was
commissioned.
The company alloted 3322560 equity share of Rs.10 each on conversion of 12%
Cumulative Convertible Preference Shares in accordance with scheme of
Amalgamation of Salosha Investments and Financial Services Limited which was
duly approved by Hon'ble High Court of Mumbai. It has also allotted 10%
Redeemable CP shares in 2003 as Bonus Shares in the ratio of one preference
shares for every two equity shares held in the company.
A new project for manufacturing Seamless Pipes was embarked by the company at a
cost of Rs.1500 millions. and the same would be largely financed through internal
accruals. The project is expected to be completed by the end current financial
year and after expansion the installed capacity of 14" OD estimated to be
one lac MT p.a.
The company has expanded the installed capacity of Seamless Pipes during the
financial year 2003-04 by 25000 MT and with this expansion, the total capacity
has risen to 125000 MT.
The company has entered into a 50:50 joint venture named, Hydril Jindal
International Private Limited, for manufacture of premium connections on
seamless pipe furnished by the company for the Indian and export markets. The
company is the market leader of seamless and large diameter ERW pipe in India.
Now with the boom in the oil & gas sector, the seamless pipe & tube
industry is witnessing an unprecedented demand driven growth for both its plain-end
and threaded seamless products. Civil work has commenced on the facilities and
the JV expects to be in production by September 2005.
RESULTS
OF OPERATIONS:
The Directors are pleased to inform that the Company has posted strong
financial performance during the year ended 31st March, 2007. The growth in
demand for the Company's products both in domestic and international market
coupled with economies of scale have led to a strong jump in financial
performance. The profit before tax for the year was Rs.3530 Millions as against
Rs.2070 Millions in the previous year showing a growth of 70% over previous
year. The profit after tax and adjustments for the year had been Rs.2340
Millions as against Rs.1390 Millions in the previous year.
Seamless Pipes Division has major contribution constituting 78% of turnover of
the Company. This Division has contributed around 83% of the Profits Before Tax
of the Company.
COATING PLANT:
The company has successfully commissioned coated line pipe facility from 4' OD
to 48' OD a value added product by using the latest technology for FBE and 3
layer PE/PP coating near to the existing facility at Nagothane. This would
enable the company to offer wider product range to all its customers.
FCCB ISSUE:
The Company had raised US$ 75 million on 29th July, 2005, by way of Zero Coupon
Foreign Currency Convertible Bonds (FCCBs) vide offering circular dated 26th
July, 2005. The FCCBs were convertible at any time on and after 28th August,
2005 up to 30th June, 2010 by the holders into fully paid equity shares of
Rs.5/- each at a conversion price of Rs.253.34 per share (reset price). The
above FCCBs were also listed on Singapore Exchange Securities Trading
Limited.
The company is pleased to inform that all the bondholders have exercised their
right of conversion and the entire bonds of US$ 75 million as of date stands
converted into Equity Shares of the Company and consequently company had issued
12,888,301 No. of new equity shares in aggregate on account of conversion at a
face value of Rs.5/- each with a share premium of Rs.248.34 per share.
JOINT VENTURE:
During the year, the company's joint venture partner, Hydril LP, USA has been
taken over by Tenaris and consequently, Tenaris has become joint venture
partner. Tenaris is the global leader in manufacturing of Seamless Pipes and
tubes and this new alliance should open up number of other business
opportunities apart from premium threading.
BACKWARD INTEGRATION PROJECT:
The Company is having plans to implement a Strategic Backward Integration
Project in Orissa to manufacture Billets, the main raw material for Seamless
Pipes having a capacity of 500000 TPA. However, owing to some land related
rehabilitation issues with local people, the company could not move on the
project and had surrendered the disputed land. However, the MOU with Govt. of
Orissa is still in existence and the company has requested the relevant Govt.
authorities to provide alternative land for the project. At the same time, the
company is also looking for some alternative options.
INDUSTRY
STRUCTURE AND DEVELOPMENT:
Seamless Pipes and Tubes Industry has created a place of its own in view of its
strong demand arising out of booming Oil and Gas Sector. Globally, the Industry
has grown and the capacities have been revived to meet the demand, which is
largely coming out from Oil and Gas services sector. Exploration and production
activities (E&P) are on the rise both domestically and internationally. The
players who have built up the capacities are therefore, going to reap the
benefit.
The Company's products viz. Seamless and ERW Pipes are value added products and
find major applications in Hydrocarbon & Infrastructure sectors,
Refineries, Fertilizers, Boilers, Automotives and General Engineering.
With the consolidation of 14' Seamless Mill, the Company has improved its
market share and strengthened its position of market leadership in Seamless
Pipe Industry. The Company enjoys enviable position in all segments of Seamless
and ERW Pipes industry globally. Recently, the Company has also commissioned
Coating Facility, which will improve its market penetration in Pipe segment.
The Company has also started manufacturing 13 Crome Seamless Pipes, which is a
value added product.
Oil & Gas Sector is heading for an unprecedented growth in both domestic as
well as international market, which has resulted in substantial growth for
Pipes and Tubes Industry. Besides, the spurt in infrastructure sector has
further augmented demand for Seamless and ERW Pipes. In Oil & Gas Sector,
apart from laying Cross Country Linepipes, Exploration and Production
activities are witnessing a strong growth in both domestic as well as
international market. Pipelines are the most cost effective mode of
transportation, globally, for petroleum products. Therefore, the country's
pipes line net work is expected to increase manifold. Further domestic refining
capacity is also expected to increase, which will boost the demand for pipes.
Strong growth expected in Infrastructure and Power sectors would also be one of
the growth drivers for seamless pipes industry. The boom witnessed in
construction and housing sector will further lead to substantial demand for the
ERW Pipes.
Besides catering to Indian market, the products of the Company are being
exported to USA, Kuwait, Bangladesh, Singapore, Australia, Indonesia, Dubai,
Myanmar, Mauritius, Iran, Saudi Arabia, Syria and African Region among others.
The International market for Seamless Pipes is growing at a rapid pace.
OPPORTUNITIES & THREATS:
With more focus being given to Oil & Gas sector by the Govt. of India, the
demand from this sector is likely to boost further. Apart from that, there is
also huge export potential of seamless pipes in the global market. With the
completion of Coating Facility and 13 Crome Seamless Pipes, value added
products, the Company has rightly poised itself to meet growing demand of its
products both in India and International Market. The strong growth expected in
Infrastructure and other allied sectors would also push up and provide
substantial boost to Seamless Pipes industry. Boom in Power, Water supply,
Construction and Housing sector will further lead to substantial demand for the
Company's Seamless and ERW Pipes.
Dumping
by Chinese Companies and Competition from international players may pose some
pricing pressures for the company's products.
Company's
margins are dependent on steel price movements. Any steep increase in Input
costs may affect operating margins adversely.
SEGMENT-WISE PERFORMANCE:
The
Company has primarily three segments - Seamless, ERW and Wind Power.
All
the three segments contribute positively to the profitability. Seamless Pipes
Division constitutes 77% of turnover of the Company. The contribution of the
Seamless Pipes Division is over 82% of the total Profit Before Tax.
ERW
Division constitutes around 21% of turnover of the company. 7 MW Wind Power
Project of the Company is meeting around 17% of Power requirement and has
helped in reducing over all cost of power. The company is also enjoying various
fiscal incentives from the state of Maharashtra.
FUTURE OUTLOOK:
Hydrocarbon
Sector is one of the largest consumers of Seamless Pipes in India as well as in
international market. The outlook for the sector is strongly linked to growth
in Exploration and Production (E&P) activities in both domestic and
international market, which is being driven up by strong crude oil prices. The
company expects crude oil prices to remain high in the near future, which will
push up the demand for its products. Demand in domestic market is, however,
relatively insulated from crude oil price movements, as there are currently
significant low levels of domestic production of oil and gas. This has prompted
GOI to focus on self-reliance in Oil and Gas Sector by inviting private players
as well.
Apart
from E&P activity, there is also significant interest in deep sea drilling.
Continuous high crude oil prices are spurring players like ONGC, Reliance
Industries, British Gas, Cairns Energy, Niko Resources etc. to make substantial
investments in deepwater drilling. Moreover, strong growth expected in
Infrastructure, power, construction and housing sector would only lead to
substantial demand. With the completion of its higher dia seamless plant, the
Company is well positioned to meet the growing requirement of the market.
FINANCIAL PERFORMANCE WITH RESPECT TO
OPERATIONAL PERFORMANCE:
During the year
the company has posted strong financial performance.
Turnover of the
company increased to Rs.15510 Millions from Rs. 10950 Millions in the previous
year - a growth of 42%. The profit before tax for the year was Rs.3530 Millions
as against Rs 2070 Millions in the previous year showing a growth of 71%. The
profit after tax & adjustments for the year had been Rs. 2340 Millions as
against Rs. 1390 Millions in the previous year.
In the year
2005, the Company raised US$ 75 million on 29th July 2005, by way of Zero
Coupon Foreign Currency Convertible Bonds (FCCB) to finance Capital Expenditure
and Acquisitions. The entire FCCBs have been converted into Indian Equity
Shares till the date of approval of Annual Accounts.
FINANCE COST:
The interest
and finance charges for the year ended 31st March 2007 were Rs. 35 Millions as
against Rs. 48.300 Millions in the previous years.
FIXED
ASSETS
Ř
Land - Freehold
Ř
Shed & Building
Ř
Plant & Machinery*
Ř
Office Equipments
Ř
Furniture & Fixtures
Ř
Vehicles
WORK
IN PROGRESS :
Ř
Shed & Building
Ř
Plant & Machinery •
Ř
Preoperative Expenses
Ř
Capital Advances
AS PER WEBSITE
Subject
is one of the flagship company of Rs.30000 Millions D.P. Jindal Group. Due to
their willingness to take on big challenges and see them through, and a
persevering policy of "no compromise on quality", MSL has evolved into a Rs. 10770
Millions Seamless Pipes Manufacturing
Company by 2005-2006 from Rs. 1050 Millions in 1994-1995.
They
pride themselves in providing a whole range of high-class, customizable and
innovative seamless pipes and tubes using state-of-art technology. They also manufacture
ERW pipes along with the seamless pipes. This ERW plant is India's first and
only Plant capable of manufacturing ERW Pipes upto 21" Outer Diameter.
They have also diversified into Power Generation with 7 MW wind power project
at Satara Maharashtra, thus committing themselves to environment friendly GREEN
POWER.
Their
engineers and technicians are among the best and they can boast quality and
productivity levels on par with those of any seamless pipes manufacturing
facilities in the world.
Listed
are years and the associated events :
- 1988 Incorporated
- 1991 IPO Launched
- 1992 Seamless plant upto 7" OD
Commissioned
- 1993 API Certification & Production
of Casing & Line Pipes
- 1995 IBR Certification by Central
Boiler Board
- 1996 ISO Certification by BVQI
- 2000 ERW Plant upto 21" OD
Commissioned
- 2001 7MW Wind Power Plant Commissioned
- 2004 Higher Dia Seamless Pipes upto
14" OD Commissioned
- 2004 JV facility with Hydril USA for
premium Connections Commissioned
- 2005 Launched Foreign Currency Convertable
Bonds (FCCBs) issue of USD 75 Million. As of date 99% of the Issue Size
has been converted in Equity Shares
- 2006 Coating facility for Oid & Gas
Sector Commissioned.
- 2006 MSL has been awarded as Singapore
for "BEST UNDER A BILLION COMPANY" by Forbes Asia Magazine.
PRESS
RELASE
April
25, 2007
MAHARASHTRA
SEAMLESS PBT ZOOMS TO Rs. 3530
Millions
�� Net Profit for the year increases by 68% to
Rs. 2350 Millions.
�� Net Sales & Income from operations for
the year increases by 44% to Rs. 13950 Millions.
�� Current Order Book Position over Rs. 11000
Millions.
Maharashtra
Seamless Limited, the flagship company of Rs.25000 Millions D.P. Jindal Group,
Market leader in Seamless & higher Dia ERW Pipes in India today announced
its results for Quarter for Q4 FY 2007 / Financial Year 2007. The Company has
created a niche for itself in the Oil Services Sector. More than 60%-70% of the
revenues of the Company come from supply of Pipes to Oil & Gas Sector and
the balance comes from Boiler, Automobile, Heat Exchanger, Refineries,
Hydrocarbon and Process Industry.
Q4 FY
2007 v/s Q4 FY 2006
The
Company has posted an increase in its Net Sales & Income from operations
for the Quarter Ended March 31, 2007 at Rs. 3668.300 Millions, compared to Rs.
2920.700 Millions recorded for the quarter ended March 31, 2006 showing an
increase of 25%. Profit Before Tax has gone up to Rs. 800.900 Millions as
against Rs. 627 Millions in the corresponding quarter of last fiscal, an
increase of 27%. Net Profit increased by 26% to Rs. 530.700 Millions as against
Rs. 420.300 Millions in the corresponding quarter of the last fiscal. Cash
Profit for the quarter was at Rs. 575.300 Millions as against Rs. 468.200
Millions during the quarter ended March 2006.
There
has been an impressive performance in the fourth quarter despite month long
shutdown of 7” Seamless mill on account annual preventive maintenance. During
the period, there has been some technical up-gradation & improvement, which
has enabled the Company to increase its total seamless capacity from 325000 tpa
to 350000 tpa.
YEAR
ENDED FY2007 v/s YEAR ENDED FY2006
During
the Year ended March, 2007, Company has recorded net sales and income from
operations at Rs.13947.300 Millions as against Rs.9661.700 Millions recording
an increase of 44%. Profit Before Tax has gone up to Rs. 3534 Millions as
against Rs. 2068.500 Millions in the corresponding period of last fiscal, an
increase of 71%. Net Profit increased by 68% to Rs. 2353 Millions as against
Rs. 1396 Millions in the corresponding period of the last fiscal owing to
increase in volume, improvement in margins & economy of scales. Cash Profit
for the period was at Rs. 2549.100 Millions as against Rs. 1587.100 Millions
during the corresponding year ended March 2006.
The
market capitalization of the Company has already crossed USD 1 Billion mark.
Recently
the Company has commissioned the coating plant facility in the month of March
2007. Coated Pipe is a value added product and increases the durability of the pipes
and it finds application in Oil and Gas transportation pipelines. There has
been a very significant demand trend of coated pipes owing to lot of activities
in the sector and it will lead to an improvement in the capacity utilization of
ERW Mill.
Both
Seamless mills of the company are performing efficiently. There is a robust
demand for the seamless pipes on account of spurt in Oil and Gas Exploration
& Drilling activities and this trend is expected to continue with an
overall excellent order book position. The total order book position of the
company stands at Rs. 11000 Millions.
November
30, 2006
MAHARASHTRA
SEAMLESS (MSL) SCALING NEW HEIGHTS
��
MSL SELECTED FOR ‘BEST UNDER A BILLION’ AWARD BY FORBES ASIA MAGAZINE.
��
MSL INCLUDED IN ‘BSE-200’ INDEX LIST W.E.F. JANUARY 8, 2007.
Maharashtra
Seamless Limited (MSL), the flagship company of Rs.20000 Millions D.P. Jindal
Group, Market leader in Seamless & higher Dia ERW Pipes in India today.
MSL
has been awarded on November 29, 2006 at Singapore as one of the 200 ‘Best
Under A Billion’ Companies listed in Forbes Asia.
As per
the Magazine, “Forbes Asia’s annual “Best Under A Billion” selections showcase
the region’s most dynamic publicly traded firms with sales under a Billion U.S.
Dollars. Track records of sustained growth and profitability distinguish these
companies, as do savvy management teams with business models increasingly aimed
at sales both at home and abroad”.
MSL
has also been included in ‘BSE-200’ Index w.e.f. January 8, 2007 in the recent
BSE Meeting held on November 24, 2006.
The
Company is also consistently making significant inroads in the Global Market
for supply of Seamless Pipes & Tubes with various international Oil &
Gas Companies. This has enabled the company to increase the customer base
globally. Now, the company is also considering to open the marketing /
representative offices abroad to capture the rising opportunities currently
prevailing in this sector.
MAHARASHTRA
SEAMLESS BAGS ONGC ORDER WORTH 1370 Millions
Maharashtra Seamless Limited,
the flagship company of Rs.20000 millions. D. P. Jindal group, market leader in
seamless & higher dia ERW pipes in India has bagged an order from Oil and
Natural Gas Corporation Limited (ONGC) for supply of Seamless Production Tubing
along with Pup Joints for a value of approx. 1370 millions.. The company also
bagged an order from Oil India Limited for supply of ERW Line Pipes for a value
of approx. 510 millions. for Oil India’s Numaligarh, Siliguri cross country
pipeline project.
Both Seamless & ERW Divisions of the company have
performed quite satisfactorily in the recent period and the trend is expected
to continue with an overall good Order Book. Presently the company is having a
total Order Book of Rs.4500 millions.
October
20, 2005
MAHARASHTRA
SEAMLESS FIRST HALF NET PROFIT UP BY 42%
Net
Profit for first half increases by 42% to Rs.530 millions
Gross
Turnover increases by 22% to Rs.4630 millions
Current
Order book position over Rs.3000 millions
Maharashtra Seamless Limited,
the flagship company of Rs.20000 millions D. P. Jindal group, market leader in
seamless & higher dia ERW pipes in India today announced its results for
Quarter and half year ended September, 2005
Q2 FY2005 v/s Q2 FY2004
The company posted an increase in
its turnover for the quarter ended September 2005 at Rs.2390 millions, compared
to Rs.2220 millions recorded for the quarter ended September 2004. Profit
Before Tax has gone up to Rs.420 millions as against Rs.290 millions in the
corresponding quarter of last fiscal, an increase of 45%. Net profit increased
by 41% to Rs.280 millions as against Rs.20 millions in the same period last
year. Cash profit for the quarter was at Rs.350 millions as against Rs.240
millions during the quarter ended September 2004.
1st HALF FY2005 v/s 1ST HALF
FY2004
During the fist half ended
September 2005 the Company has achieved a Turnover of Rs.4630 millions,
compared to Rs.3810 millions recorded for the corresponding period ended
September 2004. Profit Before Tax has gone up to Rs.790 millions as against
Rs.560 millions in the corresponding period, an increase of 41%. Net profit
increased by 42% to Rs.530 millions as against Rs.370 millions. Cash profit for
the period was at Rs.640 millions as against Rs.470 millions during the period
ended September 2004.
For the financial year ended 31st
March, 2005 the Company posted a turnover of Rs.8790 millions, Profit
Before Tax and After Tax were Rs.1260 millions and Rs.850 millions
respectively.
The Company has raised US$ 75 Million through issue of
Foreign Currency Convertible Bonds (FCCB) on July 29, 2005. The bonds, which
have a maturity of 5 Years, are convertible at a conversion price of Rs.506.68
per share. The Bonds carry a zero coupon
with a yield to maturity set at 6.20% at the end of 5 years if not converted
into shares during this period.
The issue was oversubscribed by approximately 2 times and
the bonds are listed on the Singapore Stock Exchange.
The Company had entered into a 50:50 joint venture with
US-based Hydril Company LP to manufacture premium threaded connections on OCTG
Pipes. The JV – Hydril Jindal International Private Limited, having an
installed capacity of 200,000 connections (approx. 25,000 TPA), which have a
wide application in the high-pressure oil & gas wells has started
commercial production. While Hydril will provide the joint venture company with
threading technology and marketing support for exports as well as the Indian
markets, Maharashtra Seamless Limited will exclusively provide JV the full range
of its pipes.
The company is having current order book position over
Rs.3000 millions ranging in all sizes of Seamless and ERW from various
customers and various countries such as USA, Middle East, Far-East etc.
Globally the market of seamless pipes is continuously growing up on the upsurge
of crude oil & gas sector with newer demands for pipes for the new wells.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.37 |
|
UK Pound |
1 |
Rs.80.49 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|