Jai Balaji Industries Limited — PPTs, 13-05-2025: Investor Presentation

1. Financial Highlights:

Revenue slipped 1% YoY to Rs. 635 Cr in FY25, with adjusted EBITDA down 11% to Rs. 87 Cr, compressing margins from 15% to 14%. PAT declined sharply by 37% to Rs. 56 Cr, with margin falling to 9%. Q4 underperformed with revenue down 14% and PAT down 72%. Net term debt eased to Rs. 221 Cr, improving leverage to 0.25x Net Debt/EBITDA. Capital work-in-progress stood at Rs. 13 Cr; total assets increased to Rs. 389 Cr.

2. Strategic Initiatives & Growth Drivers:

Capacity expansions are focused on high-margin segments, increasing DI Pipes capacity to 6 lakh tons from 5.04 lakh tons and specialized ferro alloys to 1.9 lakh tons. Planned capex of Rs. 100 Cr over the next year is fully funded internally. Production utilization for value-added products remains robust above 85%. Product mix is shifting towards DI Pipes and ferro alloys, expected to soon represent 80% of revenues, supporting margin expansion.

3. Business Developments:

No new acquisitions or partnerships reported. Commissioning progress includes 2.04 lakh tons of DI Pipes capacity operational and completion of a blast furnace revamp. A green energy project with a 35 TPH blast furnace gas boiler has been commissioned, enhancing cost efficiency and sustainability.

4. Market Position & Competitive Advantage:

JBIL is a top private player in Eastern India for value-added DI Pipes and ferro alloys, holding ~10% market share in DI Pipes with plans to reach 15-20%. Competitive advantages include lowest-cost capex, captive 101 MW power capacity, and strategic logistics with three railway sidings that lower raw material transportation costs. Specialized ferro alloys enjoy price premiums due to quality and global long-term contracts.

5. Investor Implications:

FY25 challenges weighed on margins and volumes, but aggressive capacity expansions, strong deleveraging, and focus on high-margin segments offer positive growth potential. Anticipated government infrastructure revival supports targeted 25-30% revenue growth and 16-17% EBITDA margins in FY26. Key factors to monitor include operational ramp-up and margin improvement.