small-cap company, which witnessed a sharp rally of 1,950% on Dalal Street, has posted impressive results for the fourth quarter and whole year of financial year 2023-24 (FY24). The company is a fully integrated steel company with focus on specialised products like ductile iron pipes (DI Pipes) and special-grade ferro alloys. This is Jai Balaji Industries.
The company, on April 25, reported a profit growth of 1,421% at Rs 879.57 crore for the year ended March 31, 2024. Jai Balaji posted its highest-ever gross sales of Rs 6,413.78 crore in FY24, up 4.71% YoY. Shares of the company jumped to Rs 1086.95 on April 25, 2024, from Rs 53.03 on the same day a year ago. Meanwhile, the market capitalisation increased to Rs 18,744.48 crore from Rs 771.32 crore during the same period.
Coming to the quarterly performance, the net profit of Jai Balaji came at Rs 272.98 crore in Q4FY24 against a loss of Rs 13.08 crore in the same quarter last year. Gross sales grew 7.05% YoY to Rs 1,845.60 crore during the quarter under review.
Commenting on the robust performance, Aditya Jajodia, Chairman and Managing Director, Jai Balaji Industries said, “Jai Balaji Industries has experienced a transformative year marked by substantial growth, driven by strong performance and a significant increase in sales for value-added products. We have achieved an impressive EBITDA of Rs 1,121 crore. We focus on increasing our share in value-added products which shall further improve margins.”
“Our strategic focus remains on specialised products such as DI Pipes and special-grade ferroalloys, which presently contribute to around 50% of our revenue and the increase in sales will help in achieving higher growth in forthcoming quarters,” Jajodia said adding the company has been contributing to the ambitious projects of the government namely Jal Jeevan Mission and AMRUT by actively providing supplies of DI Pipes and also enhancing its capacities which will help in contributing to the initiatives taken by the government for nation building and by providing safe drinking water to all.
Going ahead, the company is aiming to become net debt-free within the next fifteen months. According to YES Securities, Jai Balaji has taken significant debt reduction initiatives over the recent years. “Net debt stood at Rs 3,407.9 crore in FY21, which is now at Rs 566.5 crore. The company aims to be a net cash company over the next 12-15 months,” YES Securities said in a report on March 25.
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