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Key MeetingTakeaways

Demand Scenario:

* Demand for both SS pipe and CS pipe has improved with recovery in spending from refineries. 2QFY22 results should be definitely better than 1QFY22.

* Major demand avenues: HRRL, IGGL north east, Gas Authority of India, Mumbai and Nagpur – trunk line. Demand for ERW from CGD applications will remain strong for next 3-4 years. HPCL – Rajasthan Refinery (HRRL) is expected issue several orders for process piping.

* Process piping orders are going good. Rs100-200crs booking expected next month. Also expecting export job order from Linde and Russia. The following 6 months s expected to be good for process piping business.

Capital Expenditure:

* Two major capital expansions have been completed. Both front stainless steel and carbon steel are expected to reach utilization close to 15-20% in first year of operations. Stainless steel pipe business difficult for any new manufacturer to penetrate across the whole value chain.

Raw Material price inflation:

* Increase in raw material prices has not been impacting profits. New orders will take into consideration f increase in raw material prices.

* Sourcing for raw material for SS pipes – Flat roll and long rolled - 60-70% Flat rolled is sourced domestically from Jindal Stainless. Long products largely sourced domestically from players like Viraj and Mukand Steel.

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