Jai Balaji Industries (JAIBALAJI) Q3 23/24 earnings summary

Executive summary

• Record Q3 and 9M FY24 earnings reflected stronger realizations, a richer value-added mix and cost efficiencies.

• Strategy focuses on DI pipes and specialized ferro alloys, capacity expansion, operating efficiencies and net-debt-free status within 18 months.

Financial highlights

• Q3 FY24 revenue from operations was ₹153,898.68 lakh; 9M FY24 revenue was ₹456,818.08 lakh versus ₹440,110 lakh.

• Q3 adjusted EBITDA was ₹2,474 Mn, up 96% YoY, with a 16% margin; 9M adjusted EBITDA was ₹6,664 Mn, with a 15% margin.

• Q3 net profit was ₹23,460.29 lakh versus ₹2,791.30 lakh; 9M net profit was ₹60,658.52 lakh versus ₹7,090.78 lakh.

• Q3 basic/diluted EPS was ₹14.72/₹13.22; 9M basic/diluted EPS was ₹38.85/₹34.05.

Outlook and guidance

• FY25 revenue guided at ₹9,500–10,000 crore at current prices; value-added products targeted to reach ~80% of revenue.

• DI pipe capacity planned to reach 660,000 TPA and specialized ferroalloy capacity 190,000 TPA, with commissioning targeted by FY25 and utilization up to 90%.

• EBITDA margin target is 18%–20%, supported by value-added mix, scale, technology and cost controls.

• FY24 DI pipe output targeted at ~300,000 tons; Q4 revenue expected to rise more than 20% QoQ if added capacity is commissioned.

• DI pipe exports targeted to grow from 2% of turnover to 10% in 24 months; ferroalloy exports targeted at 50% of capacity by FY-end.