Jindal Saw Ltd

Dear Friends,

We are delighted to let you know that the company has done it again. The best ever performance at the back of the highest-level benchmark, reached last year. This year the turnover has crossed Rs 18,000 crores, the EBIDTA and the PBT for the year have registered even more remarkable growth of over 175% and 230% respectively. The consolidated financial performance of the company has also registered a good performance thereby indicating that all major subsidiaries of the company have started functioning profitably and have made contributions to the bottom line of the consolidated results. The current order book gives us a clear visibility of the next few quarters. This instils confidence that we will be able to maintain our high-performance levels.

The tailwind of the high-growth Indian economy has supported our journey. The Government of India over the last few years has pursued a comprehensive and multi-dimensional strategy to foster all-around development and growth which has given rise to a stable and sustainable demand in key infrastructures where our products are also used. The macro-economic factors like inflation, exchange rates, liquidity, benchmark interest rates and continuity in governance have provided a stable business environment for private sector corporates to flourish and do well as per their intrinsic potential. 2024, being a national election year, we expect continuity of good governance to be maintained with a stable government. Based on this assessment, we are hopeful that the business environment will remain conducive and provide corporates like us enough opportunities for continued good performance.

On the other hand, the global economy has wobbled a little bit but now showing signs of resilience with growth slowly picking up and inflation gradually reducing towards the target. Led by fast-growing economies like India and gradual improvement in major economies like the US and China, it appears that the world economy has avoided a hard landing and recession, which is good news for the world. Europe continues to have a sluggish growth but at least the trend appears positive. The continuing conflict between Russia and Ukraine continues to impact the global geo-political environment. Now, the Middle East seem to become a hotspot between the Israel - Palestine conflict which looks like spilling over into an Israel - Iran direct conflict that can prove to be very detrimental to the region. The Houthis in Yemen and the Hezbollah in Syria are adding to the complexity of the instability which if escalates can seriously disrupt the sea route through the Mediterranean impacting the world trade in a significant fashion.

The global geo-political uncertainty and the recent isolation of China by the US and other major economies of Europe has caused turmoil in the supply chain structure of the world which India has seen as an opportunity and is striving hard to become a manufacturing hub and fill the gap of the supply chain across the globe. The fundamental strength of the Indian economy provides it with enough muscle to make large investments in new sectors like semiconductors, renewable energy, and hi-tech developments while maintaining its focus on core infrastructure development. The defence sector is another key focus area where the country has taken a frog leap to indigenize modern warfare equipment like stealth fighters, aircraft carriers, modern submarines etc. All these developments are good news and point towards a sustainable all-round growth which we are all encouraged about.

Our joint venture with Hunting Energy Services is now fully functional and we are contributing premium connection pipes and tubes to the OCTG market which has thus far been dependent upon imports. The JV is likely to enter the export market soon with some value-added products. The stainless-steel pipes and tubes have also captured a reasonable market share and we continue to move up the value chain by using higher grades and making exotic products like instrumentation tubing etc.

The focus on support functions, sustainability, innovation, automation, systems & processes continues to get sharper and deeper to stay in step with the current times of growing size and complexity of the company and also to prepare the company for the next level of growth.

With continued good performance and a very stable capital structure, the company will continue to explore and examine the possibility of future growth and development to enhance the shareholders' value and keep other stakeholders happy at the same time.

Our CSR initiative, Svayam continues to work with NGOs, Government organizations and multilateral agencies creating awareness about the accessibility at public places for the elderly, differently-abled and people with typical conditions in India and abroad.

The company continues to invest in human resources to maintain a work environment conducive to good performance.

The Government authorities at the Centre, State and local levels, other stakeholders, clients and vendors have played a significant part in the company delivering the best ever performance and we appreciate and acknowledge their support in this regard. In our growth journey, the banks and financial institutions have played a crucial role in providing timely financial support which is a pre-requisite for private corporates to grow and deliver. We thank the credit rating agencies for imposing their faith in us and continuing with our ratings in "AA" category for long-term indebtedness.

At the end, I would like to acknowledge all investors and shareholders who have realized the fundamental strength and intrinsic value of the company which has reflected in the current market capitalization. We will strive hard to create shareholders value by delivering good performance year on year.