Jai Balaji Industries - Healthy Margins As Capacities Ramp Up; Expansion Plans On Track: Systematix

Systematix Report

Jai Balaji Industries Ltd. reported Q1 FY25 revenue of Rs 17.2 billion (+16%/-7% YoY/QoQ), Ebitda of Rs 3.16 billion (+54%/31% YoY/QoQ), and Ebitda margin of 18.4% (+454 bps/+533 bps YoY/QoQ). DI pipe sales during the quarter were 61000 tonne (+3%/-8% YoY/QoQ) at an average realisation of Rs 77,123/t (+10%/-8% YoY/QoQ).

Softer realisations primarily reflected lower raw material costs during the quarter. Sales of ferroalloys were 19000 tonne (+19% YoY and flat sequentially) at an average realisation of Rs 171,202/tonne (-5%/-9% YoY/QoQ). TMT bar sales of 58000 tonne grew by 16% YoY but fell 31% sequentially with an average realisation of Rs 48,600/tonne (-5% YoY +8% QoQ).

Jai Balaji Industries is on track to double its DI pipe capacity (300kt to 660kt by FY26) and augment the ferroalloy capacity by over 50% (130000 tonne to 190000 tonne by FY25). The ongoing capacity expansion plan began with an estimated outlay of Rs 10 billion of which Rs 6.05 billion has been spent as of Q1 FY25, primarily funded through internal accruals.

The company’s current net debt stands at Rs 3.8 billion, down from Rs 8.7 billion as of FY23 end, improving its leverage ratio (net debt to Ebitda) from 3.2 times to 0.4 times over the same period. Jai Balaji Industries targets to become net debt-free in the next 12 months along with concluding the ongoing capex through internal accruals.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.