Jai Balaji Industries Limited · NSE:JAIBALAJI
Jai Balaji Industries — Q2 FY25 Earnings Presentation
53 slides from Jai Balaji Industries's earnings presentation, Nov 16, 2024
Slide 1: Regulation 30 intimation letter to exchanges
JAI BALAJI INDUSTRIES LIMITED Ref : JBIL/SE/2024-25 Date : 16th November 2024 To To The Manager The Manager, Listing Department, Dept, of Corporate Services National Stock Exchange of India Limited BSE Limited "EXCHANGE PLAZA", C -l, Block G Phiroze Jeejeebhoy Towers Bandra-Kurla Complex, Bandra (E)
Slide 2: Jai Balaji Industries Ltd. Q2FY25 Investor Presentation
JAI BALAJI INDUSTRIES LTD. (JBIL) Creating a better tomorrow, Today! Q2FY25 Investor Presentation (Nov’2024)
Slide 3: 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 4: Contents
About the Company 04 - 09 Q2 & H1FY25 Performance Highlights 10 - 19 Investment Thesis 20 - 31 Annexure - 32 - 46
Slide 5: Message from Mr. Aditya Jajodia
“JBIL has maintained healthy performance on a half yearly basis, amidst challenging market dynamics. We are strongly progressing towards our aim to be Net Term Debt Free in the next 12 Months and are diligently working on capacity expansion o f Dl Pipes and Ferro Alloys as per the plan. We are confi
Slide 6: About the Company
S' < m . -* 1 ■ * A t R ||M H I|d ,1 ! ' « * * !■ * ! »KI About the Company
Slide 7: Business at a Glance
Business at a Glance O ne o f the largest m a n u fa ctu re rs of V alue -ad ded produ cts (D l Pipes & 4 m a nufacturing units present S pecia lize d Ferro A lloys) in the across W e st Bengal & C hhattisgarh private se cto r in E astern India 1st C o m p a n y in W e st B engal to set 3 S ta r E x
Slide 8: Specialized product portfolio and integrated steel manufacturing
S pecia lize d produ ct p ortfolio o f Dl 1.1 M T fu lly in tegrated G reenfield P ipes and Ferro A lloys Steel M a n ufacturing S u cce ssfu lly raised e q u ity from IPO, 101.1 M W P o w er P lants Fully P rivate P lacem ents and Q IP R oute O perationa l
Slide 9: Objectives and targets
Objective Target o Capacity enhancement - - DI Pipes capacity expected to grow by 120% to 6.6L TPA Focus on DI Pipes, - Ferro Alloys capacity is expected grow by 14% to 1.9L TPA Specialized Ferro Alloys and Value-added Products o Achieved Target of increasing utilization rate above 90%; the goal now
Slide 10: Focus on Value-Added Products
Ductile Iron Pipes Specialized Ferro Alloys Management’s strategy is to focus on Value-Added Products like nv* £r i . ■v 4 Ductile Iron Pipes and Specialized - ,T , . Ferro Alloys for margin expansion and sustainability Z JBIL is focused on being a Value-Added and Specialized Product company 8
Slide 11: FY25 guidance
25%-30% Over 4 Lakh Tons * Revenue Growth DI Pipes Production 17%-18% Rs. 3,000-3,500 Mn CAPEX EBITDA Margin Rs. 2,250-2,500 Mn Net Term Debt 9
Slide 12: Q2 & H1FY25 Performance Highlights
Q2 & H1FY25 Performance Highlights
Slide 13: Performance Snapshot, Net Term Debt, Capex Plan
wm A Performance Snapshot Approaching Zero Net Term Debt Robust Capex Plan o H1FY25 Financial Performance o Net Debt as on 30th Sep’24 is o Strong Capex plan of Rs. (YoY) - Revenue, Adjusted Rs. 3,549 Mn, reduced from Rs. 10,000 Mn in place - out of this EBITDA and PBT demonstrated 3,981 in FY24. Rs
Slide 14: Net debt and path to net term debt free
Present Debt pertains to Tata Capital Limited and co-lenders 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) Aim to become Net Term Debt Free in 12 Months 12
Slide 15: Capex and capacity expansion status
Capex (in Rs. Mn.) Existing Capacity After Products (Location) Capacity Addition Current Status Capacity Expansion Balance to 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 16: Quarter and Half-Yearly Highlights
Revenue Adjusted EBITDA & Margin (%)* PBT & PBT Margin (%) 13% 14% Quarter Highlights 15,466 15,566 2,016 1% 6% Q 2F Y 24 Q 2FY 25 Q 2F Y 24 Q 2F Y 25 I 1 14% "ii i i 17% 1 12% 15% Half-Yearly Highlights i— 1 5,562 32,749 - 30,292 4 ,159 5,000 3,720 8% 34% 34% H 1FY 24 H 1FY 25 H 1FY 24 H 1FY 25 H 1
Slide 17: Production and Sales
Sponge Iron ('000 T) Pig Iron ('000 T) Billets ('000 T) 00 121 120 254 43 Production 55 54 221 35 106 123 Q 2FY24 Q 2FY25 ■ l II! H1FY24 H1FY25 Q 2FY24 Q 2FY25 H1FY24 H1FY25 11 Q 2FY24 Q 2FY25 H1FY24 H1FY25 1 89 38 39 39 48 100 20 32 73 41 85 15 Sales Q 2FY24 Q 2FY25 H1FY24 H1FY25 Q 2FY24 Q 2FY25 H1
Slide 18: Production and Sales
TM T ('000 T) Ferro Alloys ('000 T) DI Pipes ('000 T) 107 30 30 65 63 65 124 128 48 47 99 Production 55 Q 2FY24 Q 2FY25 H1FY24 H1FY25 Q 2FY24 Q2FY25 H1FY24 H1FY25 Q 2FY24 Q 2FY25 H1FY24 H1FY25 106 38 37 63 122 121 47 48 21 60 96 18 Sales Q 2FY24 Q 2FY25 H1FY24 H1FY25 Q 2FY24 Q 2FY25 H1FY24 H1FY25 Q
Slide 19: Realizations per ton
Sponge Iron Pig Iron Billets oo oo CM CD CM oo OO co CM CO CO ^ o CD oo CO co Q 2F Y 2 4 Q 1F Y 2 5 Q 2F Y 25 H 1FY 24 H 1FY 25 Q 2F Y 24 Q 1F Y 25 Q 2F Y 25 H 1FY 24 H 1FY 25 III Q 2F Y 2 4 Q 1F Y 25 Q 2FY 25 H 1FY 24 H 1FY 25 TM T Ferro Alloys DI Pipes CM oo O CD CD m CO oo CM o CM rr, 2 00 CM CD
Slide 20: Q2 and H1 FY25 Profit & Loss
Particulars (Rs. Million) Q2FY25 Q2FY24 YoY Q1FY25 QoQ H1FY25 H1FY24 YoY Revenue from Operations 15,566 15,466 1% 17,183 -9% 32,749 30,292 8% Cost of Goods Sold 9,871 10,035 -2% 10,475 -6% 20,346 19,789 3% Employee Benefits Expense 418 403 4% 419 0% 837 773 8% Other Expenses 2,995 2,893 4% 3,131 -4%
Slide 21: Balance Sheet as of Sept 2024
Particulars (Rs. Million) 30th Sept'24 31st Mar'24 Particulars (Rs. Million) 30th Sept'24 31st Mar'24 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 13,764 13,773 (a) Equity share capital 1,825 1,637 (b) Capital work-in-progress 2,803 1,162 (b) Other equity
Slide 22: Investment Thesis
Investment Thesis
Slide 23: Investment Thesis
Investment Thesis Fully Integrated Operations Significant/Proposed Capacity Enhancement through Internal Accruals Capacity Expansion in Dl Pipes & Specialized Ferro Alloys 4 Progress towards Net Term Debt Zero Status 21
Slide 24: Investment Thesis (continued)
Strong Financial & Operational Performance g Cost Effective Logistics Infrastructure Strategic Location of Assets g Clear Strategy Going Forward
Slide 25: Products
Value-added & Backward Integration Intermediate & Finished Products Specialized Products Sinter Sponge Iron Steel Billets y C**& ' y n /■ tf, ;7A. ’* 1 B . ■ A ■» HIGH MARGIN C a pacity = 9 0 8 ,0 0 0 T Coke C a pacity = 3 45 ,00 0 T C a p a city = 3 94 ,00 0 T PRODUCTS C a p a city = 3 5 0 ,00 0 T
Slide 26: 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 27: Specialized Ferro Alloys
Specialized Ferro Alloys Exports Ferro Alloys to 40+ Countries in the world & Secured Three Star Export House status Features of our High-Grade Ferro Alloys ' | < » J 'V o High chrome conl ent if *v i o Lower carbon cor tent o Lower trace elem ents 'wl * )H n 3H8^ o Lower sulphur/ph osphorus jflfe k
Slide 28: Revenue, Gross Profit, EBITDA and PAT trends
Revenue Gross Profit Gross Profit Gross Margin 35% 30% 61,251 64,138 2 2 ,7 0 2 46,925 27,852 7 ,158 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 Adjusted EBITDA * Profit After Tax 15% PAT PAT Margin 14% 9% 9% ✓ 9,752 / 8796 4% 5,703 4,281 481 578 1,044 1% 1% -758 FY21 FY22 FY23 FY24 Adjusted EBITDA ^ "
Slide 29: Return on Capital Employed and Return on Equity
Return on Capital Employed Return on Equity 58% * 46% ✓ ' 39% NEGATIVE NEGATIVE 10% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 26
Slide 30: Capacity utilization of value-added products
Pig Iron Billets 73% 94% 70% 69% 88 % 86 % 45% 80% 39% 60% 62% 38% 71% 26% 26% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 TMT Ferro Alloys DI Pipes 89% 91% 97% 97% 93% 64% 83% 86 % 59% 52% 57% 60% 56% 53% 43% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21
Slide 31: Lowest cost capacity expansion plans
Lowest cost capacity expansion DI Pipes plans, Economies of scale, 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 logistics infrastructure FY23 FY2
Slide 32: Railway Sidings advantage
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. using
Slide 33: Strategic Location of Assets
Strategic Location of Assets Plant Location Baktarnagar, U nit 1 Burdw an, W e st Bengal R ajbandh, U nit III B urdw an, W e st Bengal [_West Bengal J R ajabndh, U nit IV Burdw an, j^Chhattisgarh \ W e st Bengal R asm ada, U n itV Durg, C hhattisgarh 30
Slide 34: Facilities and installed capacity
Installed Facilities Products Capacity (MT) Ferro A lloys • Ferro Silicon • 30,118 A llo ys/F e rro C h rom e DRI • S ponge Iron • 1,05,000 P ow er • P ow er • 18.3 M W Pig Iron • Blast Furnace • 5,49,500 DIP • D uctile Iron Pipe • 3,00,000 S inter • S inter • 9,08,000 Ferro A lloys • Ferro C hrom e
Slide 35: Going-forward strategy
Continuously working on improving operational Lowest cost Capex 3 efficiencies, cost reduction, through internal accruals modernization/technological upgradation Focusing more on Value-added Becoming net term debt free products like DI Pipes and Specialized Ferro Alloys for company in next 12 Months
Slide 36: Annexure
Annexure
Slide 37: Turnaround and management approach
01 Profit making Business o C o nverte d losses into profits Pure Intentions & Hard o C o n fid e n t to achieve E B IT D A M arg ins in the range o f 18% -20% going ahead Work of the management brought company back to o Debt Restructuring Broke th e D ebt tra p and stren gth en the b a la n ce shee
Slide 38: Operational efficiencies and balance sheet strengthening
Improving Operational Efficiencies Balance Sheet Strengthening Strategic Steps JL _ J ____________ u 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 wa
Slide 39: Corrective action plan
Corrective action plan to ensure success, Reduced Net Debt to Expanding capacities Margin expansion by Lowest cost of Capex Improving operational Rs. 3,549 Mn as on 30th through internal focusing on value- because of Brownfield efficiencies and Sep’2024. Expectation is accruals added products Expans
Slide 40: Processes
Processes Non-coking Coal Iron Ore Lumps /Fines I I DRI Sinter Induction Furnace & Billet
Slide 41: Process flow and material movement
Manganese Ore/ Coking Coal Chrome Ore. Coke Oven Ferro Alloys J- Sales Channel Pig Iron / Hot metal Free Fuel From Blast Furnace Material Movement ►Captive Power Waste Gases from BF under Green Energy Project RM Segment Process/Intermediary & Semi-Finished Segment ■ Finished Products Power Utilities
Slide 42: SWOT Analysis
SWOT Analysis o Fully integrated steel company o Weak performance in the o o Diversified product range past o Experienced leadership o Commodity price impacts o o Lowest cost of Capex o o 37
Slide 43: Opportunities and Threats
Opportunities Threats o T Strengthening of Special Grade o Ongoing inflation Ferro Alloys market o Lingering effects of Russia’s “Jal Jeevan Mission” & “Mission invasion of Ukraine Amrut Sarovar” has led to great opportunities in DI Pipes segment Government investing heavily in infrastructure sector
Slide 44: Board of Directors
Mr. Aditya Jajodia Mr. Sanjiv Jajodia Mr. Rajiv Jajodia Mr. Gaurav Jajodia Mr. Bimal Kumar Chairman & M anaging Choudhary Director Whole Time Director Executive Director Whole Time Director Whole Time Director Mr. Ashim Kumar Ms. Seema Chowdhury Ms. Mam ta Jain Ms. Rakhi Bajoria Ms. Swati Bajaj Mukh
Slide 45: Annual production figures
Sponge Iron Pig Iron Billets 176,038 TMT Ferro Alloys DI Pipes 252,709 115,384 242,121 39 Figures in Tons
Slide 46: Annual sales figures
Sponge Iron Pig Iron Billets 159,528 158,650 90,965 TMT Ferro Alloys DI Pipes 248,694 77,017 77,417 74,296 238,821 40 Figures in Tons and Gap between production and sales numbers majorly represents captive consumption
Slide 47: Realizations per ton FY20-FY24
Sponge Iron Pig Iron Billets 45,642 32,522 34’058 40,527 ^ 39,139 28,954 25,176 18,397 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 33,364 43,945 42,815 FY20 FY21 FY22 FY23 FY24 FY2
Slide 48: Yearly trend profit and loss
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 49: Yearly Trend Balance Sheet
Yearly Trend I Balance Sheet (5/5) Equity & Liabilities Assets Particulars (Rs. Million) FY24 FY23 FY22 FY21 FY20 Particulars (Rs. Million) FY24 FY23 FY22 FY21 FY20 Assets Equity & Liabilities Non-Current Assets - Equity Property, Plant and Equipment 13,773 11,268 11,601 11,766 12,332 Share Capital
Slide 50: CSR activities
World Environment Day Celebration _______ I___ ______ I_J ■ Use of Artificial Limb Callipers Health Check-ups Organised Scholarship for Young Generation 44
Slide 51: Share Holding Pattern
Share Holding Pattern Sr. No. Category of Shareholders No. of Shares Held Holding (%) 1 Promoter & Promoter Group 11,83,04,046 64.84% 2 Public a Domestic Institutions 1,61,840 0.09% b Foreign Portfolio Investors 54,88,526 3.01% c Non-Institutions 5,84,95,874 32.06% Total Shareholding (1+2) 18,24,50,
Slide 52: Slide 52
Slide 53: Thank You
Thank You Investor Relations Sana Kapoor Go India Advisors sana@GolndiaAdvisors.com M:+91 81465 50469 Sheetal Khanduja Go India Advisors sheetal@GolndiaAdvisors.com M:+91 97693 64166 Company Contact: Mr. RK Sharma - CFO r.k.sharma@iaibalajiqroup.com Mr. Ajay Tantia - CS atantia@jaibalajiqroup.com Mr
Jai Balaji Industries — Q2 FY25 Earnings Presentation on 6ix