Jai Balaji Industries Limited · NSE:JAIBALAJI
Jai Balaji Industries — Q4 FY2024 Earnings Presentation
46 slides from Jai Balaji Industries's earnings presentation, April 2024
Slide 1: Q4 & FY24 Investor Presentation
JAI BALAJI INDUSTRIES LTD. (JBIL) Q4 & FY24 Investor Presentation April’2024
Slide 2: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Jai Balaji Industries Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not f
Slide 3: Agenda
1 About the Company 04 - 09 2 Q4 & FY24 Performance Highlights 10 - 19 3 Investment Thesis 20 - 30 4 Annexure 31 - 45
Slide 4: Message from the Chairman and Managing Director
“I'm thrilled to announce that FY24 has been an outstanding year for Jai Balaji Industries. This year, we have attained our highest-ever Revenue, EBITDA, and PAT. Our journey has seen significant turnaround driven by resilience and hard work, resulting in record-breaking performances. With Jai Balaj
Slide 5: About the Company
ABOUT THE COMPANY
Slide 6: One of the largest manufacturers of value-added products
One of the largest manufacturers of Value-added products (DI Pipes & Specialized Ferro Alloys) in 3 Star Export House; Exporting to more than 40 the private sector in Eastern India. Countries Specialized product portfolio of DI Pipes and Ferro 1st Company in West Bengal to set up Sponge Iron & Alloy
Slide 7: Objective and targets
Objective Target o Capacity enhancement - Focus on DI Pipes, - DI Pipes capacity expected to grow by 120% to 6.6L TPA Specialized Ferro Alloys and - Ferro Alloys capacity is expected grow by 14% to 1.9L TPA Value-added Products o Aim to increase Utilization rate above 90% o Aim to become Net Debt Fr
Slide 8: Management's focus on value-added products
Ductile Iron Pipes Specialized Ferro Alloys Management’s 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 9: Guidance FY25
25%-30% Over 4 Lakh Tons Guidance Revenue Growth DI Pipes Production FY25 17%-18% Rs. 3,000-3,500 Mn CAPEX EBITDA Margin Rs. 2,250-2,500 Mn 9 Net Debt
Slide 10: Q4 & FY24 Performance Highlights
Q4 & FY24 PERFORMANCE HIGHLIGHTS
Slide 11: Record high financial performance
Record high Financial Performance Net Debt as on 31st March’24 is Rs. 3,981 Mn; 01 reduced by 54% on YoY basis. Company expects to be Net-Debt Free in next 15 months. Progress towards Zero Net Debt Highest ever Revenue, EBITDA and PAT – up by 5% Highest Ever 02 , 254% and 1422% YoY respectively Perf
Slide 12: Net Debt
Net Debt (Rs. Mn) Present Debt pertains to Tata Capital 34,079 Limited 31,496 FY24 Net Debt to EBITDA = 0.4x (Performed better than the expectation to maintain Net Debt to EBITDA at around 0.6 on 31st March’2024 guided earlier) 8,712 3,981 Aim to become Net Debt Free in 15 Months FY21 FY22 FY23 FY24
Slide 13: Capex and capacity expansion status
Capex (in Rs. Mn.) Capacity Capacity After Products (Location) Existing Capacity Balance to Current Status Addition Expansion Total Already incurred be incurred Capitalized Under CWIP Specialized Products Will be done in 2 phases – Phase 1 = out of 2 Lakh T, 60,000 is already commissioned, DI Pipes
Slide 14: Annual and quarter highlights
Revenue Adjusted EBITDA & Margin (%)* PAT & PAT Margin (%) 15% Quarter Highlights 14% -1% 15% 18,456 17,240 2,654 2,574 2,730 -131 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 1% 14% Annual Highlights 9% 15% 61,251 64,138 8,796 9,752 5,703 578 FY23 FY24 FY23 FY24 FY23 FY24 14 Numbers are in Millions un
Slide 15: Production and sales
Sponge Iron (‘000 T) Pig Iron (‘000 T) Billets (‘000 T) 70 121 114 41 176 252 481 39 Production 60 237 429 152 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 45 235 39 160 159 51 20 78 19 75 38 153 Sales Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24
Slide 16: Production and sales
TMT (‘000 T) Ferro Alloys (‘000 T) DI Pipes (‘000 T) 33 82 253 28 115 65 69 242 Production 66 215 103 213 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 66 66 84 249 20 19 239 77 74 64 203 209 Sales Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 16 G
Slide 17: Realization per ton by product
Sponge Iron Pig Iron Billets 45,642 33,008 46,196 34,058 29,215 47,903 41,947 41,654 39,765 39,139 26,691 37,677 37,511 28,954 42,626 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 Q4FY23 Q3FY24 Q4FY24 FY23 FY24 TMT Ferro Alloys DI Pipes (Including Freight) 188,142 176,675 176,311 53,
Slide 18: Quarterly and annual income statement
Particulars (Rs. Million) Q4FY24 Q3FY24 QoQ Q4FY23 YoY FY24 FY23 YoY Revenue from Operations 18,456 15,390 20% 17,240 7% 64,138 61,251 5% Cost of Goods Sold 11,891 9,756 22% 11,542 3% 41,436 42,996 -4% Employee Benefits Expense 352 418 -16% 372 -5% 1,543 1,288 20% Other Expenses 3,805 2,747 38% 4,69
Slide 19: Balance sheet
Particulars (Rs. Million) 31st March'24 31st March'23 Particulars (Rs. Million) 31st March'24 31st March'23 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 13,773 11,268 (a) Equity share capital 1,637 1,455 (b) Capital work-in-progress 1,162 688 (b) Other eq
Slide 20: Investment Thesis
INVESTMENT THESIS
Slide 21: Investment thesis overview
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 Strategic Location 3 DI Pipes & Specialized 7 of Assets Ferro Alloys 4 Progress towards Net
Slide 22: High margin products and integration
Value-added & Backward Integration Intermediate & Finished Products Specialized Products Sinter Sponge Iron Steel Billets Ductile Iron Pipes HIGH MARGIN PRODUCTS Capacity = 908,000 T Coke Capacity = 345,000 T Capacity = 394,000 T Capacity = 300,000 T Pig Iron TMT Bars Ferro Alloys Capacity = 350,000
Slide 23: 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 “JAL JEEVAN MISSION” and “MISSION AMRUT Government SAROVAR” infrastructure development plan has led Programs to increased requirement of DI Pipes and Jai Balaji is c
Slide 24: Ferro alloys exports 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 25: Capacity expansion plans
Capacity Expansion Plans (Tons) Lowest cost capacity expansion A plans, Economies of scale, DI Pipes Operational efficiencies 660,000 Setting up of Iron ore beneficiation 440,000 B plant of 6Lac Tons which will be 300,000 240,000 utilized for beneficiation of low grade iron ore dump C Cost effective
Slide 26: Revenue, gross profit, EBITDA and PAT trends
Revenue Gross Profit 25,000 Gross Profit Gross Margin 40% 35% 35% 20,000 30% 29% 30% 26% 15,000 25% 61,251 64,138 20% 22,702 46,925 10,000 15% 18,255 13,680 10% 27,852 5,000 7,158 5% - 0% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Adjusted EBITDA* Profit After Tax 12,000 16% 15% 14% 10000 16% 10,000 PA
Slide 27: Capacity utilization
Capacity Utilization (%) 120% 100% 80% 60% 40% 20% 0% FY20 FY21 FY22 FY23 FY24 Sponge Iron Pig Iron Billets TMT Ferro Alloys DI Pipes Increased focus on capacity utilization of Value-Added Products ensures margin expansion 27 *Includes Sponge Iron, Pig Iron, Billets, TMT, Ferro Alloys, DI Pipes
Slide 28: Railway sidings advantage
1 2 3 JBIL is the one of Have dedicated Approx 3 tons of raw the few companies Railway Sidings material is required with Railway Sidings at both loading in for every 1 ton of and has 3 Railway Odisha and steel & Co. saves Sidings which leads unloading at our significant costs by to increased plant.
Slide 29: Plant locations
Installed Plant Location Facilities Products Capacity (MT) • Ferro Alloys • Ferro Silicon • 30,118 Baktarnagar, Alloys/Ferro Chrome Unit I Burdwan, • DRI • Sponge Iron • 1,05,000 West Bengal • Power • Power • 18.3 MW • Pig Iron • Blast Furnace • 5,49,500 Rajbandh, • DIP • Ductile Iron Pipe • 3,00,00
Slide 30: Clear strategy going forward
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 15 Months
Slide 31: Annexure
ANNEXURE
Slide 32: Turnaround of the business
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 Mining ban of Iron Ore in Cancellation of coal Rising borrowing costs Global financial crisis, Karnataka and Goa led blocks led to forced and Debt Trap weak economic to substantial increase in closure of setting up of conditions, Covid & raw material prices of 5Mn T Steel Plant lockdowns iro
Slide 34: Operational efficiency and balance sheet strengthening
Improving Operational Efficiencies Balance Sheet Strengthening Strategic Steps 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: Corrective action plan
Corrective action plan to ensure success… Reduced Net Debt to Expanding capacities Margin expansion by Lowest cost of Capex Improving operational st Rs. 3,981 Mn as on 31 through internal focusing on value- because of Brownfield efficiencies and March’24; Expectation is accruals added products Expan
Slide 36: Sales channel and material movement
Manganese Ore/ Non-coking Coal Iron Ore Lumps /Fines Coking Coal Chrome Ore. DRI Sinter Coke Oven Ferro Alloys Sales Channel Induction Furnace & Pig Iron / Hot metal Free Fuel Billet From Blast Furnace Material Movement CPP Captive Power 101.10 MW Waste Gases from BF under TMT / Bars/ Wire Rods Duct
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 Lingering effects of Russia’s o Experienced leadership o Commodity price impacts o “
Slide 38: Board of Directors
Mr. Aditya Jajodia Mr. Sanjiv Jajodia Mr. Rajiv Jajodia Mr. Gaurav Jajodia Mr. Bimal Kumar Chairman & Managing Choudhary Director Whole Time Director Executive Director Whole Time Director Whole Time Director Mr. Ashim Kumar Ms. Seema Chowdhury Ms. Rakhi Bajoria Ms. Swati Bajaj Ms. Mamta Jain Mukher
Slide 39: Historical production
Sponge Iron Pig Iron Billets 252,290 176,038 242,489 237,157 480,856 447,444 438,461 149,815 152,390 208,621 214,563 428,638 362,551 103,708 101,778 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 TMT Ferro Alloys DI Pipes 252,709 115,384 242,121 214,955 103,286 212,636 92
Slide 40: Historical sales volumes
Sponge Iron Pig Iron Billets 159,528 158,650 273,055 90,965 256,661 232,687 235,363 74,268 75,070 78,003 127,404 131,791 132,340 65,218 152,871 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 TMT Ferro Alloys DI Pipes 248,694 77,017 77,417 74,296 238,821 203,142 208,752 14
Slide 41: Historical realization per ton
Sponge Iron Pig Iron Billets 45,642 34,058 32,522 40,527 39,139 47,903 28,954 44,580 42,626 22,039 28,468 25,176 31,381 18,397 27,516 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 TMT Ferro Alloys DI Pipes (Including Freight) 53,720 176,311 49,759 77,106 46,995 68,581 38
Slide 42: Five-year income statement
Particulars (Rs. Million) FY24 FY23 FY22 FY21 FY20 Revenue from Operations 64,138 61,251 46,925 27,852 29,123 Cost of Goods Sold 41,436 42,996 33,245 20,693 22,398 Employee Benefits Expense 1,543 1,288 1,089 887 900 Other Expenses 12,096 14,405 10,508 5,318 5,517 EBITDA 9,063 2,562 2,083 954 308 EBI
Slide 43: Five-year balance sheet
Equity & Liabilities Assets Particulars (Rs. Million) FY24 FY23 FY22 FY21 FY20 Particulars (Rs. Million) FY24 FY23 FY22 FY21 FY20 Equity & Liabilities Assets Non‐Current Assets - Equity Property, Plant and Equipment 13,773 11,268 11,601 11,766 12,332 Share Capital 1,637 1,455 1,105 1,105 1,105 Right
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 44
Slide 45: Share Holding Pattern
Share Holding Pattern Sr. No. Category of Shareholders No. of Shares Held Holding (%) 1 Promoter & Promoter Group 10,83,04,046 62.8% 2 Public 34.2% a Domestic Mutual Funds 1,14,862 0.1% b Foreign Portfolio Investors 49,98,086 2.9% 62.8% 2.9% c Non-Institutions 5,90,33,292 34.2% 0.1% Total Shareholdi
Slide 46: Investor Relations and Company Contacts
Investor Relations Contact: Sana Kapoor Go India Advisors sana@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.sharma@jaibalajigroup.com Mr. Ajay Tantia – CS atantia@jaibalajigroup.com Mr.
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