PSL Limited (PSL), a global leader in manufacturing and coating of pipes for transporting hydrocarbon products, water products, and steel structural applications, and the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India, announced its audited financial results for the first quarter ending June 30th, 2008.

Q1 FY2009 financial performance (compared with Q1 FY2008) :
Revenues improve 58.9% to Rs. 658.86 cr. from Rs. 414.56 cr.
PBIT better by 46.5% to Rs. 66.01 cr. from Rs. 45.06 cr.
PAT increases 52% to Rs. 26.04 cr. from Rs. 17.13 cr.
EPS improves by 52% at Rs. 6.02 from Rs. 3.09.
Commenting on the performance for Q1 FY2009, Mr. Ashok Punj, Managing Director of PSL Limited, said:

“Q1 FY2009 has proven to be a fruitful quarter for the Company where we have successful executed past orders in a timely manner. We have also been successful in receiving large orders during the quarter from the domestic and international markets driving our consolidated order book position to approximately Rs. 6,200 cr.

Our order book position provides substantial revenue and earning visibility for FY2009. Demand for pipes at present is also buoyant both domestically and internationally, and we are determined to further enhance our order book position and execute it in a timely manner given our large capacity preparedness.”

Work on our U.S. facility – the maiden Two-Step HSAW plant in North America – has been progressing smoothly and we expect this unit to be commissioned soon. PSL’s UAE facility has already commenced operations and we will see healthy revenue contribution to consolidated numbers in FY2009. As mentioned earlier, these facilities are in line with our strategy to be located close to high demand areas. We see this as a significant cost saving advantage over our peers as PSL will be one of the few pipe companies in the world to have a presence across three geographies.”

Order book position

Buoyant consolidated order book position at Rs. 6,200 cr.
Key highlights

U.S. subsidiary, PSL North America LLC’s 300,000 facility located in the state of Mississippi set to be commissioned in Q2 FY2009
This would be the maiden Two-Step HSAW capacity in North America
Facility has already received a USD 418 million order for 543 miles of pipes and associated coating from Florida Gas Transmission Company
Signifying the high demand for pipes in the region – Considerable imbalance with the domestic U.S. demand far exceeding domestic supply of Large Diameter Line Pipe for Natural Gas Transportation requirements
Robust outlook for FY2009

High level of revenues and earnings visibility as a result of strong unexecuted order book position for FY2009
Prospects of new order flow point to building of an exceptional order pipeline from both domestic and international markets

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