Jai Balaji Q1FY25 Net Up 23%, Capex Completion in 9 Months

Kolkata, Jul 29 (PTI) Jai Balaji Industries Ltd on Monday said it does not foresee any impact on its margins for the ongoing fiscal amid sluggish steel prices.

The city-based steel player reported a robust 23 per cent rise in net profit to Rs 209 crore in the first quarter (April-June) of FY'25.

"We do not foresee any margin squeeze or demand tapering due to our specialised products like ductile iron pipes and specialised ferroalloys, which account for 50 per cent of our revenue.

"This share is expected to increase to about 75 per cent in the next 12-18 months," Jai Balaji Industries Chairman and Managing Director Aditya Jajodia said.

Adjusted EBITDA saw an expansion to 19 per cent in the quarter from 14 per cent in the same quarter last year.

"We expect EBITDA margins to remain between 17-20 per cent for the entire year," Jajodia added.

He stated that the growth trajectory has been fueled by a remarkable increase in demand for their products in the first quarter.

The company's Q1FY25 revenue from operations increased by 16 per cent, reaching Rs 1,718 crore, up from Rs 1,483 crore in the corresponding period last year.

"The ongoing capacity expansion with an investment of Rs 1,000 crore will be completed within the next nine months to enhance our value-added product mix. This will increase DI pipe capacity from 2.5 lakh tonnes to 6.5 lakh tonnes and associated infrastructure," Jajodia said.

The company is also targeting to become debt-free over the next 12 months on the back of strong cash flows, the officials stated.