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 financial year ending March 31st, 2008.

FY 2008 standalone financial performance (compared with FY 2007)
* Revenues improve 40% from Rs. 1608 cr. to Rs. 2,261 cr.
* PBT increases 44% from Rs. 86 cr. to Rs. 124 cr.
* PAT grows 36% from Rs. 62 cr. to Rs. 84 cr.
* EPS better at Rs. 20.88. from Rs. 15.02 cr.

Commenting on the performance for FY2007/2008, Mr. Ashok Punj, Managing Director of PSL Limited, said: “I am happy to announce that we have registered healthy growth in this year owing to a healthy order execution, and are on a firm wicket to deliver stronger performance in the coming financial year on the back of our robust order book position. It has been an eventful year wherein which we not only received many orders of high value, but also implemented plans strengthening our global operations.”

“Further, FY 2009 has commenced on a strong note where we have bagged many prestigious orders, and I am glad to add that the pipeline for new orders remains buoyant in both the domestic and international markets.”

In line with our strategy of having manufacturing facilities close to potential demand zones, such as in Sharjah for the Middle Eastern markets, we are in the process of developing a 300,000 MTPA facility in the state of Mississippi, USA through our U.S. subsidiary. The opportunities offered by our American facility are very exciting as this will be the first H-SAW unit in the U.S. and we expect healthy demand for large diameter H-SAW pipes in the U.S. 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. In effect, we are in an ideal position to benefit from this demand given our high level of capacity preparedness, and execution capability.”

Order book position

Strong order book of over Rs. 6,200 cr. as on 24th June, 2008.

Key developments

Projects Update

* 300,000 MTPA facility in the U.S. through PSL North America LLC (U.S. subsidiary) scheduled to be commissioned in Q2 FY2009
o After establishing the facility, the Company expects to begin production in within CY2008.
* 75,000 MTPA Sharjah facility commissioned and stabilized – order prospects highly encouraging
o Robust demand prospects based on level and nature of new project enquiries in the Middle East
o Plan to expand its capacity to 300,000 MTPA and upgrade it to a Two-Step Mill to take advantage of a conducive operating environment

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