PSL Limited (PSL), a global leader in manufacturing and coating of pipes for transporting hydrocarbon products and the largest manufacturer of high-grade large diameter Helical Submerged Arc Welded (HSAW) pipes in India, announced its results for the third quarter and nine months ended December 31, 2007.

Q3 FY 2008 financial performance (compared with Q3 FY 2007)

Revenues improves 34.28% from Rs. 504.86 cr. to Rs. 677.91 cr.

PBIDT increases 34.07% from Rs. 53.94 cr. to Rs. 70.75 cr.

PAT grows 45.14% from Rs. 20.80 cr. to Rs. 30.19 cr.

EPS better at Rs. 7.72 from Rs. 6.48

9M FY 2008 financial performance (compared with 9M 2007)

Revenues up by 33.33% from Rs. 1196.73 cr. to Rs. 1595.64 cr.

PBIDT better by 18.89 % from Rs. 133.92 cr. to Rs. 172.46 cr.

PAT improves 35.06% from Rs. 49.20 cr. from Rs. 66.45 cr.

EPS increase to Rs. 16.98 from Rs. 15.33

Commenting on the performance for Q3 & 9M FY2008, Mr. Ashok Punj, Managing Director of PSL Limited, said:

“I am glad to announce that the Company has delivered strong performance for the period under review owing to a healthy order execution and robust order book position.

Following the Duliajan-Numaligarh Gas Pipeline order in Assam, our order book as on 31 December 2007 stands at Rs. 2200 cr. We expect to close FY2008 on a strong note given the robust order book and the opportunity to obtain new orders going forward.

The outlook of our business continues to remain buoyant with large number of pipeline projects planned and executed world-wide including India. The oil and gas pipeline infrastructure story remains extremely positive with crude touching all time highs. We are equally bullish on the water pipeline infrastructure and expect it to generate huge demand in the next two years.”

Order book position

Healthy order book of Rs. 2200 cr. as on 31 December 2007

Recent Orders:

Receives order worth Rs. 125 cr. for Duliajan-Numaligarh Gas Pipeline in the state of Assam from DNP Ltd.

Order comprises 200 km coated pipeline having 16-inch outer diameter with API 5L (X65 Grade)
Key developments

Consecutive dividend returns since 1995

Company completed twelve years of successive payment of dividend ever since its maiden Public issue in February 1995.

U.S. project update

PSL-NA, the Company’s U.S. subsidiary, has achieved financial closure for development of its 300,000 MTPA spiral pipe facility in the state of Mississippi, USA with placement of US$ 78 million Bonds via US Municipal Bond Route

Out of US$ 78 million, US$ 68 million would be tax-free leading to noticeable savings in capex costs

PSL plans to invest US$ 103 million for the facility located in Bay St. Louis, Mississippi. Plant and machinery will be supplied by the Company’s in-house engineering department from India resulting in a win-win situation for PSL in terms of engineering revenues as well as for PSL-NA by lowering capex costs

Construction work of the Two-Step spiral pipe mill with an integrated coating facility is on schedule and the mill is expected to be commissioned by Q1 FY2009.

Sourced From: Good Relations (India) Pvt Ltd

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