J.G.Chemicals Limited — PPTs, 19-05-2025: Investor Presentation

1. Financial Highlights:

JG Chemicals posted FY25 revenue of INR 847.9 Cr, up 27% YoY. EBITDA surged 81% to INR 96.1 Cr with margin expanding 339 bps to 11.33%. Net profit more than doubled to INR 66.8 Cr, driving PAT margin to 7.87%. Q4 revenue grew 24% to INR 224.3 Cr, while EBITDA margin slightly dipped to 10.25% due to elevated expenses. EPS stood at INR 16.34 for FY25 and INR 3.92 for Q4. The balance sheet shows net worth at INR 459.8 Cr and healthy cash reserves supporting expansion plans.

2. Strategic Initiatives & Growth Drivers:

The company is expanding via greenfield and brownfield projects, including an 11.43-acre plant in Dahej, Gujarat targeting Western India, with commissioning expected by H1 FY27. R&D focuses on new rubber chemicals and zinc derivatives, alongside scaling zinc sulphate production to capture strong demand. Sustainability and recycling initiatives aim at energy efficiency and improved recycling capabilities.

3. Business Developments:

JG Chemicals acquired 2.96 acres near its Naidupeta plant to develop advanced recycling products. Customer additions continue across industries, driving volume and revenue growth. Proprietary zinc scrap recycling technology supports evaluation of further recycling ventures aligned with sustainability goals.

4. Market Position & Competitive Advantage:

As India’s largest zinc oxide maker and a top-five global player, JGC commands ~30% domestic market share. It maintains strong ties with 9 of 10 global tyre majors and 11 domestic leaders. High entry barriers include lengthy approvals, tough certifications, and a robust zinc scrap sourcing network. Scale, recycling expertise, certifications, and brand loyalty enable premium positioning in pharma and specialty segments.

5. Investor Implications:

Robust revenue and profit growth alongside margin expansion suggest attractive growth potential. Investments in capacity expansion and diversified innovation underpin scalability. Execution risks hinge on project timelines and new market penetration. The sustainability focus enhances competitive positioning amid rising demand for eco-friendly solutions.