Jindal Steel & Power Ltd - India Infolinecontent.indiainfoline.com/wc/archives/sect/jspl.pdfJindal Steel and Power Ltd- Steal this Steel & Power COMPANY RESEARCH August 16, 2003 7

AnalystVinod Chari + (91 22) 2685 [email protected]

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Jindal Steel & Power LtdSteal this Steel & Power

Dealing (+91 22)2685 0505Sandeepa 98201 92387Biren 98204 43920

August 2003

♦♦♦♦♦ Still available at a PE of 4xFY04E, which is veryattractive compared to industry majors like Tisco &SAIL.

♦♦♦♦♦ Has its own iron ore and coal mines and captive powerplants.

♦♦♦♦♦ Foray into value added products like rails andstructurals which sell at 70% premium to longs.

♦♦♦♦♦ New capacity expansion to be funded without equity dilution.

Reiterate BUYCMP : Rs 69152 wk H/L : Rs 729/218Mkt Cap : Rs10.6 bn

Originally recommendedprice(on 04 August2003) Rs526

Share Price Chart

Shareholding Pattern %Promoters 63.32Institutional Investors 8.03Other Investors 6.94General Public 21.72

COMPANY RESEARCH

August 16, 2003

Jindal Steel and Power Limited

JSPL has a promising mix of power, structurals and longs and is entering into nichevalue added segments. JSPL is expected to gain from the thrust on infrastructure,especially the Railways, as it moves into value added rails business. JSPL also has acushion, as its power business is a cash cow providing it with huge margins

Investment Positives

Integrated PlayerIt is the largest sponge iron maker in the country and commands a 25% marketshare. It has its own iron ore, coal and power supply. Being an integrated producergives the company tremendous cost advantage and they are one of the lowest costproducers of sponge iron due to their captive coal mines and captive power generation.

Firm PricesSponge Iron prices are ruling firm, following global steel prices and this trend isexpected to continue through FY04. The other reason is the lower availability ofsteel scrap to be used in Electric Arc Furnaces (EAF) due to lower ship breakingactivities as well as the rise in steel scrap prices in line with the overall steel rally.

Power business, a cash cowThe company has a power generation capacity of 150MW. Of this the companyconsumes around 40-50MW while the rest is sold to Chattisgarh State ElectricityBoard. They use waste heat recovery process in their boilers and generate about40MW from waste. The cost of generation for the company is less than a rupeewhile it is selling power to Chattisgarh State Electricity Board at Rs 2.31/kWh. Thecompany is augmenting its power generation capacity by 55MW next year.

Rail business, a value added boostThe company is also a major player in rails and makes long 120 Mt. rails. The otherplayer in this segment is SAIL’s Bhilai Steel Plant. These 120 Mt. rails are the longestfinished rails and provides additional safety as it reduces the number of joint welds onthe rails. This business will witness a lot of growth especially since the governmenthas announced Rs 29.49bn outlay for track renewal in the Rail Vikas Yojana. Thereis also a plan to double the gauge at a cost of Rs 41.73bn.This product will be addvalue as they will command a premium of nearly 70% as compared to longs

Structurals add to product rangeThe company is also doing good business in structurals with its flanges and beams.These find a lot of application in bridges, ports, airports, power plants etc. They arecurrently sold at around Rs 15000 to Rs24000 per ton. It is already supplyingstructurals to Delhi Metro.

Jindal Steel and Power Ltd- Steal this Steel & Power

COMPANY RESEARCH

August 16, 2003 3

Sponge Iron IndustrySponge iron is a metallic product produced through direct reduction of iron and ironore pellets in the solid state. It is also known as Direct Reduced Iron (DRI) or HotBriquette Iron (HBI). This is a substitute in steel melting scrap used mainly in ElectricArc Furnaces (EAF).

Global scenarioThe global sponge iron production was around 45MMT in 2002. In 2002, it wasChina that dominated steel market being the maximum consumer of steel. HoweverIndia emerged as the largest producer of sponge iron in 2002, accounting for 15% ofglobal production. China is importing considerable quantity of scrap leading to increasein international prices. The fall out of the rise in scrap prices is seen on sponge ironprices.

Exhibit 1 : Global Sponge Iron Production Share

India15%

Iran12%

Mexico11%

Venezuala11%

Others51%

The trend around the world has been that most of the incremental capacity additionusing the EAF route. The blast furnace route is less preferred due to high project costand relatively longer gestation.

Scrap prices around the world are appreciating with scrap prices rising from $90/tonto $150/ton. Another factor in scrap is the lower availability of scrap. Scrap has reducedfrom the levels of 9% to around 5% of the total steel production. Lesser ship breakingactivities is also contributing to lower scrap availability. This augurs well for spongeiron prices globally.

Source : Company, India Infoline


COMPANY RESEARCH

August 16, 2003 4

Domestic ScenarioIndia is a strong player in the sponge iron business. The installed capacity of spongeiron in the country increased from 1.52 million tons per annum in 1990-91 to 7.032million tons per annum in 2002-03. There are 53 sponge iron units in the countryproducing the 7 million tons of sponge iron. Out of these, there are 50 coal-based unitscovering a capacity of 3.29 million tons per annum and 3 gas based units covering acapacity of 3.76 million tons per annum. Despite the lower number of gas basedplants, gas based sponge iron production accounted for 44% of the total domesticproduction. India was the largest sponge iron maker in the world in 2002 with 6.53million tons.

In order to push up the production of sponge iron in the country and to gainfully utilizenatural resources, the Government is encouraging the development of this sector. Thissector has done w7ell in the last 20 years as the percentage of EAF usage has increasedin the industry. The other factor in favor of sponge iron is that it reduces dependencyon imported scrap.

Sponge iron players also forward integrate to make further downstream productswhere margins are good. In the medium term the outlook for the sponge iron industrylooks very good with rising demand and no immediately new capacity. Companies likeTata , JSPL, Monnet etc are looking to augment capacity. However these capacitiesare expected to go onstream only by 2005/06.


COMPANY RESEARCH

August 16, 2003 5

JSPL’s Plant CapacitiesThe company is fully integrated having its own supply of coal and Iron ore. The companyhas the following facilities at its disposal.

Facility Capacity (tpa)Captive Coal Mines 2.5 millionSponge Iron 650000Captive Power Plant 150 MWHot Metal through Mini Blast Furnace 250000Steel Rounds/Slabs/Billets 400000High Carbon Ferro Chrome 30000Steel Castings 30000Machinery Manufacturing 11500

Exhibit 3 : Plant Capacities

Source : Company

Exhibit 2 : The Jindal Family

The companyJSPL is part of the OP Jindal group of steel companies. The company came intoexistence in 1998 due to a spin off of the erstwhile Jindal Strips Limited. The Raigarhand Raipur units of Jindal Strips Limited were hived off to from JSPL after a restructuring.JSPL is managed by Naveen Jindal, the youngest son of OP Jindal.

The Jindal family, under the umbrella of Mr. OP Jindal, has its presence in the entiregamut of steel products


COMPANY RESEARCH

August 16, 2003 6

Production ProcessThe company has a fully integrated approach for manufacturing steel and value addedproducts. The integrated approach gives the company an edge over other manufacturersdue to its cost competitiveness. The company is provided with protection from thevagaries of input costs as it has its own iron ore, coal and power. This makes thecompany the lowest cost producer of sponge iron in India.

There are two plants of the company at Raigarh and Raipur. The production processof the company is shown in Exhibit 4.

Raigarh PlantAt Raigarh, JSPL has the largest coal-based sponge iron manufacturing facility in theworld, with an installed capacity of 650,000 MTPA, using six rotary kilns. Spongeiron was the first production facility at the Raigarh plant, commissioned in 1991. Growthand expansion plans include an additional 450,000 MT capacity of sponge iron withthe commissioning of 3 rotary kilns and a 250,000 MT capacity for metallic chargeusing the rotary hearth furnace. Today a major portion of production is used for in-house manufacture of steel at JSPL or the other companies in the Jindal Organization.

Raipur plantThe Division manufactures steel castings, ingots and heavy machinery equipment andspares for metallurgical, mining, material handling and process industries and has amanufacturing capacity of 11,500 MTPA, along with a capacity of 30,000 MTPA ofsteel ingots and castings. The Division can produce single-piece steel castings up to 6MT and has a handling facility of up to 50 MT. Some of the machinery manufacturedincludes gear boxes, equipment of sponge iron plant, material preparation and handlingequipment, equipment for Cold Rolling and Hot Rolling Mills, etc

This Division has the facilities and capabilities to manufacture equipment and sparesfor sponge iron plants (support rolls, girth gear, etc.), blast furnace (top charging,ladle, winch assembly, etc.), steel melting shop (ladles, transfer car, mixer, etc.),continuous caster (mould oscillator, segment assembly, carrier frame, roller table,withdrawal and straightener, etc.), rolling mills (chocks, rollers, roller table, looper car,strip separator, etc.), mining machinery (dipper front wall, liners, buckets etc.), materialhandling (EOT crane, gear boxes, transfer car, etc.) and for other metallurgical andprocess industries.


COMPANY RESEARCH

August 16, 2003 7

Sponge Iron businessJSPL is one of the lowest-cost producers of sponge iron in India. Backward integrationhas given JSPL the distinction of being the only sponge iron manufacturer with its owncaptive raw material resources and power generation. This has enabled JSPL to controlboth price and quality of its products.

Businesses of the Company

3.97

4.28

5.03

5.62

5.9

3.5

4

4.5

5

5.5

6

1999 2000 2001 2002 2003

Exhibit 5 : Production Trend

It has the largest coal based sponge iron facility in the world with an installed capacityof 6,50,000 MTPA, using six rotary kilns. Sponge iron was the first production facilityat the Raigarh plant, commissioned in 1991. In India, JSPL is the market leader incoal-based sponge iron, enjoying a market share of 22%. A good portion of thesponge iron produced is used for internal consumption. The company’s sponge ironproduction has grown at a CAGR of 10% from 3.97 lac tons in 1999 to 5.9 lac tonsin 2003.

Growth and expansion plans include an additional 450,000 MT capacity of spongeiron with the commissioning of three rotary kilns and a 250,000 MT capacity formetallic charge using the state-of-the-art rotary hearth furnace. Plans have also beendeveloped to establish in the first phase, a 1 million capacity sponge iron manufacturingfacility in the state of Orissa.

Steel businessSteel is manufactured using the Electric Arc Furnace at the company’s Raigarh plant.The company has a steel melt shop with a capacity of 4,00,000 MTPA. The steel meltshop (SMS) is equipped with ladle furnace and vacuum degassing and has continuouscasting facilities for wide slabs, rounds and blooms.A further increase in the steel-manufacturing capacity is on the anvil with a new steelmelt shop near the Rail Mill in the pipeline.

Source : Company


COMPANY RESEARCH

August 16, 2003 8

Power businessThe company has a power generation capacity of 150MW. It is planning to addanother 55 MW by September 2004 and a further 50 MW by 2005 takings its capacityto 255MW by 2005.

The company is one of the lowest cost producers of power as it uses heat recoveryprocess where waste heat is recovered from the sponge iron rotary kilns. The wasteflue gases, coal reject from the washery and char generated from sponge iron operationsare used as fuel to generate power. Of the 150MW, the company generates 40MWfrom waste heat recovery and 110 MW from coal rejects and char.

The generation of power has grown at a CAGR of 24% from 445mn kWh to 1044mnkWh. The cost of power generation for the company is less than a rupee. The companyhas two power purchase agreements with Chattisgarh State Electricity Board for selling100 MW of power at Rs 2.30 per KwH. They are basically two agreements, one for30 MW upto December 2008 and the other for 70MW upto October 2011.

The agreement is for a period of ten years. It is a flexible arrangement where thepower generated is first used for internal consumption and only the surplus power issold to CSEB. This ensures that the operations of the companies are not hampered byobligations to provide power to CSEB.

What makes the CSEB attractive?The company has a flexible arrangement where it needs to sell only surplus power to CSEB.Unlike other State Electricity Boards (SEBs) in the country, CSEB is one of the profitable andcash surplus SEB. Partial reason for that is due to lower agricultural load of just 10% ascompared to Karnataka or Haryana, which have 49% and 41% agricultural load respectively.

FerrochromeFerro chrome is an essential component in the manufacture of stainless steel and specialsteel. JSPL manufactures ferro chrome through the continuous smelting of chromeore, coke, coal and quartz at the submerged arc furnace (SAF). The company getshigh-grade chrome ore from captive chrome ore mines in Orissa.


COMPANY RESEARCH

August 16, 2003 9

Rail and Universal BeamThe company has forayed into value added productswith setting up of its Rail and Universal Beam Mill(RUBM). The project has a total capital outlay of Rs396 crores.

The RUBM will produce 120-meter long rails, whichwill be the world’s longest finished rails. The company

is also equipped with a Flash butt welding plant to weld rails from 240-480 meters.

They are also making hot rolled parallel flange beams andcolumns, commonly known as H-beams. The mill makesparallel flange beams and columns in larger sizes

Parallel flange beams will help buyers substitute imports andoffers cost and quality advantages over tapered flange beams.These beams find application in bridges, ports, power plantsetc. The company is already supplying these structurals to Delhi Metro.

Future demand for structurals is expected to comefrom the various infrastructure projects that are in thepipeline. Some of the projects expected to drivedemand are construction of road and rail bridges andflyovers, airport projects like modernization of theDelhi and Mumbai airports and construction of newairports in Bangalore and Hyderabad and the newpower projects that are coming across the country.

The construction boom will also help the structural business, as these will find applicationin many multi-storey buildings.


COMPANY RESEARCH

August 16, 2003 10

Exhibit 7 : Rail business in India

The Indian Railways is the second largest railnetwork in the world with a rail network of 63028Kms. Demand for rails is expected to grow at a fastclip. The demand for rails was 540000 tons in 2002and the forecasted demand for 2003 is 680000tons. Bhilai Steel Plant is the only producer of railsin India with a capacity of 750000 tons

Railway tracks are a priority area given the recentsafety records of Indian Railways. A railway safetyfund called Special Railway Safety Fund (SRSF) ofRs 17000 crores over six years was created in 2001-02. Of this Rs 6818 crores have been allocated for

12260 Kms of track renewal.

The Rail Vikas Yojana announced by the Prime Minister for strengthening the GoldenQuadrilateral has an outlay of Rs 2949 crores for track renewals and Rs 4173crores for gaugedoubling.

Growth in rail demand

Besides, demand will also come from 1340 kms of broad gauge lines will be completed in2003-04. This includes 225 kms of new lines, 775 kms of gauge conversion, 340 kms of trackdoubling.

We expect this will benefit JSPL, as it will become only the second player to supply rails. Theabove plans willcall for a lot of rails.Currently onlySAIL’s Bhilai SteelPlant suppliesrails but will not beable to meet therising demand onits own.

Apart from theattractive domesticmarket for rails forJSPL, there is a

potential export market to countries like SAARC, Iran, Iraq, Malaysia, Vietnam, Egypt, Turkeyand Afghanistan.

6.8

4.4

5.4

3.5

0

12

3

4

5

6

78

2000 2001 2002 2003 E

Lac

Ton

s

Source: Company


COMPANY RESEARCH

August 16, 2003 11

Exhibit 8 : Indian Rail Safety- Lot of work to be doneIndia has a world’s second largest railways with a rail network of 63000 Kms and a track lengthof nearly 100000 kms. This huge network runs 14000 services daily and carries around 14million passengers.

Indian Railways at a glanceNetwork Kms 63140Broad Gauge Kms 45099Meter Gauge Kms 14776Narrow Gauge Kms 3265No of stations covered 6856No of trains daily 14444Passenger trains daily 8702No. of Wagons 216717No. of Coaches 39236No. of Locomotives 7739Freight Traffic daily 1 Mn TonPassenger Traffic daily 14 MnSource: Indian RailwaysHowever the country has witnessed increasing frequency of rail accidents in recent times.According to estimates, the Indian rail network has atleast 400 major and minor accidents ayear. Year 2002 had a tally of 460 accidents.

Some of the major mishaps in recent times have been:July 02, 2003— At least 18 people were killed when a train crashed off a bridge and onto amarketplace in Warangal in Andhra PradeshJune 22, 2003 — Three coaches of a train derail at a tunnel entrance near Kankavali in Sindhudurgdistrict of Maharashtra, after rain washes boulders onto the track. Fifty-one people are killedMay 15, 2003 — A fire breaks out in a carriage of the Golden Temple Express. At least 36 peopledie from the blaze.January 3, 2003 — Three carriages from an express passenger train in Maharashtra derails.At least 18 people are killed and the accident is blamed on human error.

Rail accident in Maharashtra,June 22, 2003 .


COMPANY RESEARCH

August 16, 2003 12

December 21, 2002 — Nine carriages of the Bangalore Express ran off the tracks, killing 19and injuring almost 100. A sheared rail was behind the derailment.September 10, 2002 — A carriage plunges into river Dhave after the Kolkata-to-New DelhiRajdhani Express derails over a colonial-era bridge in northeastern Bihar. Two other car-riages are left dangling precariously. Over 120 people are killed. The reason for the accidentis givem as poor maintenance and lax enforcement of safety standards.

This list is indicative and does not include mishaps due to arson and rioting in various partsof the country. The country’s worst accident was in 1981 when a train traveling across a riverin the state of Bihar was blown off its track by a cyclone. More than 800 people died.

The reason for such a high number of accidents is the system continues to rely on equip-ment dating from the colonial era. It also relies on manual operations and many of the worstaccidents in recent years have been blamed on human errors.

However the Railways is taking a conscious effort to improve rail safety. The Railway Budget2002-2003 has made special provisions for safety of the passengers. It has planned Rs17,000 crore Special Railway Safety Fund (SRSF) to replace age-old assets in next six years.Under the move, about 17,000 km of track will be renewed, over 3,000 bridges rebuilt andsignal gears will be replaced at about 1000 stations.

JSPL Businesses-Value addition chain


COMPANY RESEARCH

August 16, 2003 13

Financial performanceThe company has posted net sales of Rs 9887mn in FY03. The company had aPBDIT of Rs 3624mn and a net profit of Rs 1451mn. The company would have madehigher profits but for a Rs 450mn write off it had to take. Of this, Rs 360mn was debtstransferred to the company during the Jindal Strips restructuring. The company had anEPS of Rs 130.2 based on earnings prior to exceptional item of Rs 450mn. Thecompany has paid a dividend of 125% for FY03.

During the first quarter of FY04, the company clocked net sales of Rs 3005mn and aPBDIT of Rs 923mn. The company had a net profit of Rs 503mn, which gives anannualized EPS of Rs 130.2. The company is expected to see better quarters and theestimated EPS for FY04 is Rs 172.

Improving margins and consistent earnings growthThe company has reined in its operational performance and its PBDIT to Net Salesmargins have improved from 24% in 2000 to around 36% in 2003.

The company has shown consistent earnings growth and we are confident that thecompany will be able to accelerate its earnings growth as it moves into value addedrails and structurals business.

460 6621012 1075

1451

2650

4526

0

1000

2000

3000

4000

5000

1999

(15M

)

2000

(9M

)

2001

2002

2003

2004

E

2005

E

Rs

Mn

Exhibit 9: Consistent Earnings Growth

Source : Company, India Infoline


COMPANY RESEARCH

August 16, 2003 14

2862 72 77

130

172

294

20

70

120

170

220

270

320

1999 2000 2001 2002 2003 2004E 2005E

Churning of debtsThe company has turned a Rs 2bn rupee loan into a $42mn forex loan. This shouldresult in a saving of around 5-9% of interest cost for the company. There is a reductionin interest rate of existing rupee loans and should result in a saving of 1-4% of interestcost of the company.

The company is also prepaying high cost debts from internal accruals. They haveredeemed their preference shares and pre-paid Rs 250mn term loan in FY03. Morerepayments are expected in the current fiscal and the company should generate anadditional profit of around Rs 200-250mn on account of interest savings.

Major expansion plansThe company has some major expansion plans on the anvil. They are planning toincrease their sponge iron capacity to 1310000 tons from the current 650000 tons.They also plan to increase their power generation capacity by a further 50MW to taketheir overall generation capacity to 255 MW. The company will also enhance steelproducts by 750000tons. The overall project cost is estimated at Rs5500mnExhibit 11: Planned expansions in next 3 years

Exhibit 10: EPS Growth

Facility Capex by Phase 1 Phase 2Sponge iron plant 6.6 lac ton 1000 1000Power plant 50 MW 750 750Steel products 7.50 lac ton 1500Coal Washery 2.5 Mn MT 500Total project cost Rs.5500mn 3750 1750Phase 1 is expected to be completed by March 2005 and Phase 2 by September 2005

Project Cost (Rs mn)

The company is expected to fund its capacity expansion without equity dilution. 50%of the funding will be through internal accruals and the other 50% in the form of debt.

Source: India Infoline


COMPANY RESEARCH

August 16, 2003 15

OutlookThe company is gradually shifting focus on value added products. The sponge iron willbe used more and more for internal consumption. The RUBM will be a major revenuedriver for the company as it moves towards higher margin products. While maintainingits hold on the sponge iron market, the company is also expected to improve earningsfrom mild steel products, structurals and rails. Power is the business that sets thecompany apart and makes it extremely attractive. The company can sell upto 100MW of power to Chattisgarh State Electricity Board. As per company sources, theCSEB does not have a record of even single default in payment. All these make apromising mix and the company is sure to witness exciting times ahead.

Production(Tons) FY02 FY03 FY04E FY05ESponge Iron 561504 590491 450000 450000Steel 54724 222612 400000 425000Power( Mn KwH) 720 1044 1100 1400Ferro Chrome 19743 25693 27000 28000Rails & Universal Beams 0 0 100000 400000Pig Iron 0 94466 94466 94466

Sales (Tons) FY02 FY03 FY04E FY05ESponge Iron 495222 460077 420000 420000Steel 55789 209916 396047 411839Power( Mn KwH) 461 560 650 800Ferro Chrome 19959 25405 26700 27000Rails & Universal Beams 100000 400000Pig Iron 0 86746 91083 92000

Realisation (Rs/Ton) FY02 FY03 FY04E FY05ESponge Iron 5130 5800 7000 6800Steel 12300 11800 12000 12000Power( per KwH) 2.31 2.31 2.31 2.31Ferro Chrome 20500 22000 22000 21000Rails & Universal Beams 0 0 23000 22000Pig Iron 0 7200 7700 7500

Sales Value (Rs Mn) FY02 FY03 FY04E FY05ESponge Iron 2540 2669 2940 2856Steel 685 2477 4753 4942Power 1065 1295 1502 1848Ferro Chrome 409 559 587 567Rails & Universal Beams 0 0 2300 8800Pig Iron 0 626 701 690

4701 7623 12783 19703Internal Divison 1136 2261 2351 3851Total 5836 9887 15134 23554

Key Financials of JSPL


COMPANY RESEARCH

August 16, 2003 16

Particulars( Rs Mn) FY02 FY03 FY04E FY05ENet Sales 5,836 9,887 15,134 23,554Other Income 59 85 118 132Total Sales 5,895 9,972 15,252 23,686Cost of Sales (3,692) (6,349) (10,442) (16,507)RM (1,224) (1,998) (3,329) (5,653)Wages (196) (261) (454) (490)Other Expenses (2,272) (4,090) (6,659) (10,364)PBDIT 2,203 3,624 4,809 7,179Interest (574) (806) (886) (886)Depreciation (390) (576) (807) (968)PBT 1,239 2,241 3,116 5,324Except Items (12) (450) - -Tax (151) (340) (467) (799)PAT 1,076 1,451 2,649 4,526

SourceShare Capital 129 146 154 154Reserves 4523 5582 8113 12522Net Worth 4652 5728 8267 12676Pref Share Cap 710 110 0 0Loan Funds 6975 8853 8139 7500Total 12337 14691 16406 20176UseFixed AssetsGross Block 8094 10112 12640 15800Accu Depreciation 1216 1793 2241 2802Net Block 6878 8319 10399 12999Capital WIP 3188 4928 2464 1232Investments 455 422 507 608Net Current Assets 1798 1005 3021 5317Misc Exp Not W/o 18 16 15 20Total 12337 14691 16406 20176Key RatiosEPS 83.40 130.2* 172.01 293.90CPS 113.64 138.56 224.41 356.75DPS 7 12.5 8.00 8.00RONW 23.12 25.33 32.04 35.70Asset Turnover 0.48 0.68 0.92 1.17Working Capital T.O 3.28 9.92 5.04 4.45* EPS based on earning prior to exceptional items

Financial Position

Published in August 2003. All rights reserved. © India Infoline Ltd 2003-4.This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended asan offer or solicitation for the purchase and sale of any financial instrument. Any action taken by you on the basis of the informationcontained herein is your responsibility alone and India Infoline Ltd(hereinafter referred as IIL) and its subsidiaries or its employees orassociates will not be liable in any manner for the consequences of such action taken by you.We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not representthat it is accurate or complete. IIL or any of its subsidiaries or associates or employees shall not be in any way responsible for any lossor damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipients ofthis report should rely on their own investigations. IIL and/or its subsidiaries and/or employees or associates may have interests orpositions, financial or otherwise in the securities mentioned in this report.India Infoline Ltd, 24 Nirlon Complex, Off Western Exp. Highway, Goregaon(E). Mumbai -63. Tel 2685 0101 / 0505. Fax 2685 0585

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Jindal Steel & Power Ltd - India Infolinecontent.indiainfoline.com/wc/archives/sect/jspl.pdfJindal Steel and Power Ltd- Steal this Steel & Power COMPANY RESEARCH August 16, 2003 7