Jai Balaji Industries Limited · NSE:JAIBALAJI
Jai Balaji Industries — Q3 FY24 Earnings Presentation
46 slides from Jai Balaji Industries's earnings presentation, Jan 15, 2024
Slide 1: Intimation to stock exchanges under Regulation 30
JAI BALAJI INDUSTRIES LIMITED Ref : JBIL/SE/2023-24 Date : 15-01-2024 To To The Manager The Manager, Listing D e p a rtm en t, Dept, o f C orporate Services National Stock Exchange o f In d ia Limited BSE Limited "EXCHANGE PLAZA", C -l, Block G Phiroze Jeejeebhoy Towers Bandra-Kurla Complex, Bandra
Slide 2: Jai Balaji Industries Ltd. Q3 & 9MFY24 Investor Presentation
JAI BALAJI INDUSTRIES LTD. (JBIL) Q3 & 9MFY24 Investor Presentation
Slide 3: Disclaimer
This presentation and the accompanying slides (the which have been prepared by Jai Balaji Industries Limited (the solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied o
Slide 4: Contents
1 About the Company 04 - 08 2 Investment Thesis 09 - 21 3 Financial and Operational Highlights 22 - 29 4 Annexure 30 - 44
Slide 5: Message from the Chairman
Balaji Industries Ltd. is a fully integrated steel company with focus on specialized products like Ductile Iron Pipes and Ferro Alloys. Company faced tough challenges in last 6-7years which are now resolved with the commitment, hard work, faith and resilience of the management, business associates a
Slide 6: About the Company
ABOUT THE COMPANY
Slide 7: One of the largest manufacturers of value-added products in Eastern India
One of the largest manufacturers of Value- added products (DI Pipes & Specialized Ferro 3 Star Export House; Exporting to more than Alloys) in the private sector in Eastern India. 40 Countries Specialized product portfolio of DI Pipes and 1st Company in West Bengal to set up Sponge Iron Ferro Alloys
Slide 8: Objectives and Targets
Objective Target o Capacity commissioning by FY25 - Focus on DI Pipes, - DI Pipes capacity expected to grow by 175% to 6.6L TPA Specialized Ferro Alloys and - Ferro Alloys capacity is expected grow by 46% to 1.9L TPA Value-added Products o Aim to increase Utilization rate upto 90% o Aim to become Ne
Slide 9: Focus on Value-Added Products
Ductile Iron Pipes Specialized Ferro Alloys strategy is to focus on Value-Added Products like Ductile Iron Pipes and Specialized Ferro Alloys for margin expansion and sustainability JBIL is focused on being a Value-Added and Specialized Product company 8
Slide 10: Investment Thesis
INVESTMENT THESIS
Slide 11: Investment Thesis
Fully Integrated Strong Financial & 1 5 Operations Operational Performance Significant/Proposed 2 Cost Effective Capacity Enhancement 6 Logistics Infrastructure through Internal Accruals Capacity Expansion in 3 Strategic Location DI Pipes & Specialized 7 of Assets Ferro Alloys 4 Progress towards Net
Slide 12: Integrated operations and capacities
Value-added & Backward Integration Intermediate & Finished Products Specialized Products Sinter Sponge Iron Steel Billets Ductile Iron Pipes Capacity = 608,000 T Coke Capacity = 345,000 T Capacity = 394,000 T Capacity = 240,000 T Pig Iron TMT Bars Ferro Alloys Capacity = 350,000 T Power Capacity = 1
Slide 13: Capacity expansion and capex status
Capex (in Rs. Mn.) Existing Capacity After Products (Location) Capacity Addition Already Balance to Current Status Capacity Expansion Total incurred be incurred Specialized Products Will be done in 2 phases Phase 1 = 2Lac T expected to commission by FY24; Phase DI Pipes 240,000 TPA 420,000 TPA 660,0
Slide 14: DI Pipes industry and government programs
DI Pipes Industry is expected to grow at 13%-15% CAGR Industry in near future. It is used for water transportation and drainage system AMRUT Government Programs to increased requirement of DI Pipes and Jai Balaji is contributing to the same Co. has around 10% of the DI pipes market of Our Market Ind
Slide 15: Exports Ferro Alloys to 40+ Countries
Exports Ferro Alloys to 40+ Countries in the world & Secured Three Star Export House status Features of our High-Grade Ferro Alloys o High chrome content o Lower carbon content o Lower trace elements o Lower sulphur/phosphorus Revenues from Sold at Specialized Ferro significant Alloys expected to pr
Slide 16: Capacity Expansion Plans
Capacity Expansion Plans (Tons) Lowest cost capacity expansion A plans, Economies of scale, DI Pipes Operational efficiencies 6,60,000 Setting up of Iron ore beneficiation B 3,60,000 plant of 6Lac Tons which will be 2,40,000 3,00,000 utilized for beneficiation of low grade iron ore dump C Cost effec
Slide 17: Net Debt
Net Debt (Rs. Mn) Present Debt pertains to Tata Capital Financial Services 34,079 31,496 Expectation to maintain Net Debt to EBITDA at around 0.6 on 31st 8,712 5,665 Aim to become Net Debt Free in 18 Months FY21 FY22 FY23 9MFY24 16
Slide 18: Revenue, Gross Profit, Adjusted EBITDA and PAT
Revenue Gross Profit Gross Profit Gross Margin 20,000 40% 35% 18,000 35% 16,000 29% 30% 26% 30% 14,000 12,000 25% 61,251 10,000 20% 18,255 46,925 45,682 8,000 16,137 15% 13,680 6,000 27,852 10% 4,000 7,158 2,000 5% - 0% FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 7,000 Adjusted EBITDA* 15% 7000 Prof
Slide 19: Capacity utilization of value-added products
Capacity Utilization (%) 140% 120% 100% 80% 60% 40% 20% 0% FY19 FY20 FY21 FY22 FY23 Sponge Iron Pig Iron Billets TMT Ferro Alloys DI Pipes Increased focus on capacity utilization of Value-Added Products ensures margin expansion 18 *Includes Sponge Iron, Pig Iron, Billets, TMT, Ferro Alloys, DI Pipes
Slide 20: Railway Sidings advantage
1 2 3 JBIL is the one of the few companies Approx 3 tons of raw with Railway Sidings Have dedicated material is required and has 3 Railway Railway Sidings for every 1 ton of Sidings which leads at both loading in steel & Co. saves to increased Odisha and significant costs by flexibility in unloading
Slide 21: Plant locations and facilities
Installed Plant Location Facilities Products Capacity (MT) Ferro Silicon Baktarnagar, Ferro Alloys 30,118 Alloys/Ferro Chrome Unit I Burdwan, DRI 1,05,000 Sponge Iron West Bengal Power 18.3 MW Power Rajbandh, Pig Iron Blast Furnace 4,28,750 Unit III Burdwan, DIP Ductile Iron Pipe 2,40,000 West Benga
Slide 22: Strategic priorities
Continuously working on improving operational 1 Lowest cost Capex 3 efficiencies, cost reduction, through internal accruals modernization/technological upgradation Focusing more on Value-added products like DI Pipes and Becoming net debt free company Specialized Ferro Alloys for 2 in next 18 Months
Slide 23: Q3 & 9MFY24 Performance Highlights
Q3 & 9MFY24 PERFORMANCE HIGHLIGHTS
Slide 24: Record high financial performance
Record high Financial Performance Net Debt as on 31st Rs. 5,665 Mn. post 01 entering into facility agreement with Tata Capital Financial Services Progress towards Zero Net Debt Highest ever Quarterly and Nine Months financial Highest Ever 02 performance of EBITDA & PAT. Record high production & sale
Slide 25: Revenue, Adjusted EBITDA and PAT
Revenue Adjusted EBITDA & Margin (%)* PAT & PAT Margin (%) 8% 16% 2% 15% 0%] 15,369 15,390 96% 740% 2,346 2,474 1,263 279 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 4% 15% 2% 13% 4% 45,682 44,011 103% 755% 6,066 6,664 3,291 709 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 24 Consolidated Numbers and Num
Slide 26: Production and sales volumes
192 125 359 135 64 167 314 40 42 61 113 93 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 120 55 184 39 41 114 20 56 58 115 15 30 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 25
Slide 27: Production and sales volumes
71 170 27 27 173 96 58 59 148 82 49 147 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 18 57 55 67 164 17 60 172 54 139 50 142 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 Q3FY24 9MFY23 9MFY24 26
Slide 28: Realization per ton by product
Sponge Iron Pig Iron Billets Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 TMT Ferro Alloys DI Pipes Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 Q3FY23 Q2FY24 Q3FY24 9MFY23 9MFY24 27 Numbers are in Rs. Per Ton
Slide 29: Consolidated profit and loss statement
Particulars (Rs. Million) Q3FY24 Q2FY24 QoQ Q3FY23 YoY 9MFY24 9MFY23 Revenue from Operations 15,390 15,466 0% 15,369 0% 45,682 44,011 Cost of Goods Sold 9,756 10,035 -3% 10,869 -10% 29,545 31,453 Employee Benefits Expense 418 403 4% 328 27% 1,191 944 Other Expenses 2,747 2,893 -5% 3,468 -21% 8,291 9
Slide 30: Consolidated balance sheet
Particulars (Rs. Million) 30 Sep'23 31 March'23 Particulars (Rs. Million) 30 Sep'23 31 March'23 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 10,950 11,268 (a) Equity share capital 1,605 1,455 (b) Capital work-in-progress 2,575 688 (b) Other equity 8,262 4
Slide 31: Annexure
ANNEXURE
Slide 32: Turnaround of the company
01 Profit making Business o Converted losses into profits Pure Intentions & Hard o Confident to achieve EBITDA Margins in the range of 18%-20% going ahead Work of the management brought company back to 02 Debt Restructuring o Broke the Debt trap and strengthen the balance sheet. life ! o Expectation
Slide 33: Resilient promoters bounced back
1 2 3 4 Cancellation of coal Mining ban of Iron Ore in blocks led to forced Global financial crisis, Karnataka and Goa led closure of setting up of Rising borrowing weak economic to substantial increase in 5Mn T Steel Plant costs and Debt Trap conditions, Covid & raw material prices of Project in Pu
Slide 34: Strategic steps taken
Improving Operational Balance Sheet Strengthening Strategic Steps Efficiencies 1 2 3 4 5 6 Increasing Increased Debt restructuring Promoters Promoters Sold some Capacity focus on through Asset subscribing to pledged their assets in Utilizations production of Reconstruction share warrants shares to d
Slide 35: Debt reduction and expansion through internal accruals
Reduced Debt to Expanding capacities Margin expansion by Lowest cost of Capex Improving operational Rs. 6,370 Mn as on 31 through internal st focusing on value- because of Brownfield efficiencies and accruals added products Expansions capacity utilizations be Net Debt Free in 18 Months 34
Slide 36: Process flow and sales
Manganese Ore/ Non-coking Coal Iron Ore Lumps /Fines Coking Coal Chrome Ore. DRI Sinter Coke Oven Ferro Alloys Induction Furnace & Pig Iron / Hot metal Sales Channel Billet From Blast Furnace Free Fuel Material Movement CPP 101.10 MW Captive Power TMT / Bars/ Wire Rods Ductile Iron Pipe RM Segment P
Slide 37: SWOT analysis
Strengths Weakness Opportunities Threats S W O T o Fully integrated steel company o Weak performance in the o Strengthening of Special Grade o Ongoing inflation o Diversified product range past Ferro Alloys market o o Experienced leadership o Commodity price impacts o invasion of Ukraine o Lowest co
Slide 38: Board of Directors
Mr. Aditya Jajodia Mr. Sanjiv Jajodia Mr. Rajiv Jajodia Mr. Gaurav Jajodia Mr. Bimal Choudhary Chairman & Managing Whole Time Director Executive Director Executive Director Executive Director Director Mr. Ashim Kumar Ms. Seema Ms. Rakhi Jain Ms. Swati Bajaj Ms. Mamta Jain Mr. S.K. Tamotia Independen
Slide 39: Production volumes
Sponge Iron Pig Iron Billets 1,76,038 2,52,290 2,33,784 2,42,489 4,47,444 4,79,468 1,56,845 1,49,815 2,08,621 2,14,563 4,38,461 3,90,925 3,62,551 1,66,831 1,12,966 3,14,029 1,03,708 1,01,778 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 TMT Ferro All
Slide 40: Sales volumes
Sponge Iron Pig Iron Billets 1,59,528 2,73,055 92,328 90,965 2,56,661 2,40,915 2,32,687 2,35,363 1,28,738 1,27,404 1,31,791 1,32,340 74,268 75,070 1,13,807 65,218 58,307 1,15,245 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 TMT Ferro Alloys DI Pipes
Slide 41: Realization per ton
Sponge Iron Pig Iron Billets 45,642 34,058 32,522 40,527 39,617 47,903 29,845 44,580 43,597 21,353 22,039 28,529 28,468 33,060 25,176 31,381 18,397 27,516 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 TMT Ferro Alloys DI Pipes 73,611 53,720 1,71,792
Slide 42: Historical profit and loss statement
Particulars (Rs. Million) 9MFY24 FY23 FY22 FY21 FY20 FY19 Revenue from Operations 45,682 61,251 46,925 27,852 29,123 30,775 Cost of Goods Sold 29,545 42,996 33,245 20,693 22,398 23,993 Employee Benefits Expense 1,191 1,288 1,089 887 900 818 Other Expenses 8,291 14,405 10,508 5,318 5,517 5,768 EBITDA
Slide 43: Historical balance sheet
Equity & Liabilities Assets Particulars (Rs. Million) FY19 FY20 FY21 FY22 FY23 H1FY24 Particulars (Rs. Million) FY19 FY20 FY21 FY22 FY23 H1FY24 Assets Equity & Liabilities Non Current Assets - Equity Property, Plant and Equipment 13,191 12,332 11,766 11,601 11,268 10,950 Share Capital 964 1,105 1,10
Slide 44: CSR activities
World Environment Day Celebration Tree Plantation Free Distribution of Artificial Limbs Use of Artificial Limb Callipers Health Check-ups Organised Scholarship for Young Generation 43
Slide 45: Share Holding Pattern
Share Holding Pattern Sr No. Category of the Shareholders No. of shares held Holding (%) 1 Promoter & Promoter group 7% a Individuals/Hindu undivided Family 1,05,13,323 7% b Bodies Corporate 8,57,90,723 53% 37% Group Total 9,13,04,046 60% 2 Public a Foreign Portfolio Investors 41,19,839 3% 53% b Non
Slide 46: Investor Relations and Company Contact
Investor Relations Contact: Sana Kapoor Go India Advisors sana@GoIndiaAdvisors.com M:+91 81465 50469 Tanya Verma Go India Advisors tanya@GoIndiaAdvisors.com M:+91 81465 50469 Sheetal Khanduja Go India Advisors sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Company Contact: Mr. RK Sharma - CFO r.k.sha
Jai Balaji Industries — Q3 FY24 Earnings Presentation on 6ix