Business Daily from THE HINDU group of publications
Thursday, Jun 12, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, Jun 12, 2008 ePaper | Mobile/PDA Version | Audio |
|
|
|
|
|
|
|
|
Home Page
-
Steel Corporate - New Business Markets - Stocks
BL Research Bureau
Orders continue to pour in for the domestic steel pipe maker PSL. The company’s latest order worth Rs 1,928 crore from GAIL, for the supply of carbon steel pipes, provides strong revenue visibility. Executable by the end of this year, this order requires PSL to supply GAIL with pipes of varying diameters for a total length of approximately 470 km. Only a few days ago, PSL’s US subsidiary had received an order worth $418 million from Florida Gas Transmission Company. Buoyant order flowsAdding this latest order, PSL’s consolidated order book now stands over Rs 6,000 crore. This healthy growth in order flows not only provides PSL with a strong revenue visibility, it also inspires confidence on the company’s capability to win big orders. Further, the room for enhancement in PSL’s capacity utilisation also bears attention. At a time when most of its peers have limited available capacities, PSL enjoys relatively large unutilised capacities. This may also stand it in good stead in winning further orders from GAIL, when the latter’s 730 km Dabhol-Bangalore pipeline opens for tender. Margins to remainOn the margin front, the latest order may not be any different from the typical domestic orders, which aren’t usually high on margins. And since exports from PSL’s Indian units represent less than 5 per cent of the company’s current order book; overall margins may continue to remain sedate. However, it is this very low exposure to exports that has insulated the company from the impact of the recently introduced 10 per cent export duty on pipes. PSL gets Florida Gas order PSL bags orders worth Rs 1,225 cr PSL: Buy More Stories on : Steel | New Business | Stocks
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
 |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
