Jai Balaji Industries (JAIBALAJI) Q2 24/25 earnings summary

Executive summary

• H1FY25 revenue, adjusted EBITDA and PBT rose 8%, 34% and 34% YoY; PAT declined 3%, partly due to deferred tax provisions.

• Strategy focuses on DI Pipes and Specialized Ferro Alloys, capacity expansion, margin improvement and becoming net term debt free within 12 months.

• The board approved a 1:5 share split, subject to shareholder and required regulatory approvals.

Financial highlights

• Q2 revenue was ₹1,556.57 crore, up 1% YoY and down 9% QoQ; H1 revenue was ₹3,274.88 crore, up 8% YoY.

• Q2 adjusted EBITDA was ₹231.6 crore, up 10% YoY; H1 adjusted EBITDA was ₹556.2 crore, up 34% YoY.

• Q2 PBT was ₹212.74 crore, up 6% YoY; H1 PBT was ₹500.03 crore, up 34% YoY.

• Q2 net profit was ₹153.16 crore, down 24% YoY; H1 net profit was ₹361.98 crore, down 3% YoY.

• H1 finance cost fell 23% YoY to ₹30.72 crore; depreciation rose 6% to ₹44.7 crore.

Outlook and guidance

• FY25 guidance is 30%-35% revenue growth and 17%-18% EBITDA margin, supported by higher DI Pipe volumes and a growing value-added mix.

• DI Pipes production target exceeds 4 lakh tons in FY25; management expects quarterly volume increases as capacity comes on stream.

• H2 performance is expected to improve as strategic capex in value-added products contributes increasingly to revenue and earnings.

• DI and specialized ferroalloy contribution is expected to reach 65% by FY25-end and 75%-80% by Q4 FY26.

• Net term-debt-free status is targeted within 12 months; FY25 net term debt guidance is ₹225-250 crore.