Jai Balaji clocks 23% y-o-y increase in net profit in Q1FY'25
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Jai Balaji Industries Limited has reported a 23% increase in net profit to INR 209 crore in the first quarter of financial year 2025 (Q1FY'25), compared to the corresponding period of last year (CPLY), the company said on Monday.
The Q1FY'25 revenue from operations also grew 16% to INR 1,718 crore, up from INR 1,483 crore in Q1FY'24. Driven by strong demand for specialised products, its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) went up 19% in the quarter,from 14% in the same quarter last year.
"The growth trajectory has been fuelled by an increase in demand for our DI pipes and specialised ferro alloys and other steel products,informed Aditya Jajodia, Chairman and Managing Director, Jai Balaji Industries. He added, that the company's strategic emphasis on premium products has been a game-changer.
The share of value-added products comprises around 50% of our revenue, demonstrating their growing importance in our portfolio. We will continue to focus on increasing the contribution of value-added products in our profile of products, which will further strengthen our financial position, Jajodia further said.
"We do not foresee any margin squeeze or demand tapering off because of our specialised products like DI pipes and ferro alloys, which account for 50% of our revenue.This share is expected to increase to about 75% in the next 12-18 months,he added.
The company's ongoing capacity expansion, at an investment of INR 1,000 crore, will be completed within the next nine months to enhance the value-added product mix. This will increase DI pipe capacity from 2.5 lakh tonnes to 6.5 lakh tonnes. The company is also targeting to become debt-free over the next 12 months on the back of strong cash flows.
Jai Balaji Industries is a fully integrated steel company with a focus on specialised products like ductile iron pipes (DI pipes) and special-grade ferro alloys. The company is one of the largest steel manufacturers in the private sector in eastern India having four integrated steel manufacturing units across West Bengal and Chhattisgarh. It was the first company in West Bengal to set up sponge iron and waste heat recovery power plants.
The company has a diversified product portfolio that also includes sponge and pig iron, billets, TMT bars, sinter, coke, and power. It is one of the major producers of special-grade ferro alloys in India and exports these to over 40 countries.