Jai Balaji Industries records historic EBITDA in 9MFY24, marking remarkable turnaround

Jai Balaji Industries Ltd (JBIL), a prominent player in the value-added steel product manufacturing sector, has reported its highest ever EBITDA of Rs. 665.46 Cr. for 9MFY24, demonstrating an impressive 245.15% year-over-year (YoY) growth. This milestone is a testament to the company’s successful turnaround and strategic growth initiatives.

Revival and Strategic Growth

JBIL has undergone a significant transformation, focusing on products like water supply pipes, special-grade ferro-alloys, and others. The company is moving closer to becoming net debt-free, underlining its financial resilience and noteworthy turnaround.

Key Financial Highlights of Q3-FY-24

– Achieved record quarterly EBITDA of Rs. 246.80 crores with an EBITDA margin of 16.04%.

– Revenue from operations for the Oct-Dec quarter stood at Rs. 1,538.99 crores.

– Secured a loan of Rs. 559 crores from Tata Capital Financial Services for refinancing existing debts.

Unprecedented Financial Growth for Jai Balaji Industries with a 245.15% YoY Increase in EBITDA

Ambitious Growth Plan Ahead

JBIL declared a comprehensive capex plan, amounting to approximately Rs. 1,000 crores in the next 15-18 months. This plan includes increasing manufacturing capacity at the Durgapur plant in West Bengal, technological upgrades, and enhancing green power generation.

Management’s Vision for the Future

Aditya Jajodia, Chairman and Managing Director of Jai Balaji Industries, shared, “Jai Balaji 2.0 aims for transition into a high margin business, and we plan to achieve the same by lowest cost capex for capacity enhancement, economies of scale, operational efficiencies and becoming net debt free in next 18 Months and focusing on specialized products like DI Pipes and special-grade Ferro Alloys.”

Jai Balaji Industries’ Financial Turnaround and Strategic Direction

The company, under Mr. Jajodia’s leadership, has overcome significant challenges through commitment, hard work, and resilience. This turnaround is not just a financial recovery but a strategic transformation, positioning Jai Balaji Industries as a leader in high-margin business sectors. The focus is on cost-effective capacity enhancement, economies of scale, operational efficiencies, and a drive towards being net debt-free within the next 18 months.

Future Focus on Specialized Products

Jai Balaji Industries is setting its sights on specialized products like Ductile Iron Pipes (DI Pipes) and special-grade Ferro Alloys. This move is indicative of the company’s transition into more niche, high-value areas of steel manufacturing. Mr. Jajodia emphasized the importance of this strategic shift for sustained success in the highly competitive steel industry.

About Jai Balaji Industries Ltd

Jai Balaji Industries Ltd., listed on both the BSE (532976) and NSE (JAIBALAJI), is a leading fully integrated steel company. The company has established itself as one of the largest steel manufacturers in the private sector in Eastern India. With four integrated steel manufacturing units spread across West Bengal and Chhattisgarh, Jai Balaji Industries specializes in products like Ductile Iron Pipes and special-grade Ferro Alloys, catering to a diverse range of industries.

Looking Ahead

As Jai Balaji Industries marches towards its goal of becoming a net debt-free entity, the focus on increasing capacity, technological innovation, and green energy initiatives places it in a strong position for future growth. The company’s strategic vision, combined with its recent financial achievements, bodes well for its aspirations to lead in the value-added steel product segment.

This remarkable story of Jai Balaji Industries Ltd. is not just about overcoming financial hurdles but is a narrative of strategic foresight, resilience, and a clear vision for the future, setting a new benchmark in the steel manufacturing sector.