Jai Balaji Industries Achieves Record Profit In Q4

  • 5 months ago
Transcript
00:00 Since the theme for today's earnings, Jaya Balaji came out with their earnings and to
00:03 discuss more about how Q4 has gone by and how the future of the company looks like,
00:08 we have with us Mr. Aditya Jajodia, Chairman and Director at Jaya Balaji Industries, who
00:13 joins us now.
00:14 Thank you so much.
00:15 Good afternoon.
00:16 Good afternoon.
00:17 So my first question to you is, you know, just give us a brief idea of how the quarter
00:21 has gone by and how FY24 has fared out for you.
00:25 Well, the quarter has been extremely good.
00:30 We did a revenue of around 2000 crores in the last quarter and on an annualized basis
00:35 we did a revenue of around 6600 crores.
00:38 In terms of EBITDA, we did EBITDA of around 1100 crores and in terms of profitability,
00:45 our profit margins were in the region of around 20% EBITDA margins and in terms of profitability,
00:50 our profit was around 880 crores, which was a growth of around 1400% from last year.
00:56 So the performance has been, I would say, satisfactory.
01:02 Sure, sure Aditya.
01:04 Can you talk to us about FY25 going forward?
01:08 Prices expected to be stable, volatile, what are the kind of numbers one can expect because
01:14 from your investor standpoint, you've hit it out of the park?
01:18 Thank you.
01:20 Thank you, Siddharth.
01:22 See as far as the numbers are concerned, we are very optimistic about our growth numbers
01:26 and we are very optimistic about our operations.
01:29 The focus of the management, it is, it is going to be evolving around two, three issues.
01:35 Number one is that we are doing a capex of around 1000 crores entirely through internal
01:38 approvals, out of which 550 crores has already been spent and then the balance for 50 crores
01:45 it will be spent over the next 12 to 15 months.
01:48 So with the completion of this capex program, what we are doing is that currently we are
01:52 selling around 50% of our products as value added products, which have higher margins.
01:57 So with this completion of the capex programs, this contribution of the value added products
02:02 to our entire product basket, it will increase to 80% and the top line will also increase
02:06 by another 50%.
02:07 So what we are aiming at, it is a marginal 80 to 20% on a much higher top line.
02:12 So this is what we are aiming at.
02:14 One of the other focuses of the management also is to focus on products and businesses,
02:18 which will give us a very high return on capital and very high return on equity.
02:23 So as it is, if you see the numbers with the return on capital, return on net worth, these
02:26 are very high.
02:28 So we are, so the focus of the management will be to focus only on those businesses
02:32 which will give us very high return on net worth and equities.
02:34 All right.
02:35 So Aditi, I also want to try to understand, you know, in terms of your order book, what
02:39 is your order book at present and in terms of execution timelines also, where do you
02:44 stand?
02:45 In terms of order book in the Dept.
02:47 I.L.
02:48 LN 5 business, we have an order book of around 10 to 12 months of the current capacity, but
02:52 since the capacity, it is increasing, but the capacity will be increasing by 250% over
02:58 the next 15 months.
02:59 So we are very happy with the order book.
03:01 In terms of the specialized federal law business, we have long term agreements with most of
03:04 our buyers and we are exporting to more than 40 countries.
03:08 So as long as the long term agreements are concerned, the prices are fixed to the indexes,
03:14 but then the quantities are fixed.
03:16 So more than 60% of our sales are in the long term agreements.
03:20 So we have a, so as far as the order book is concerned, we are very, very okay with
03:24 the order books.
03:25 We are very happy with the order books.
03:27 Understood.
03:28 Aditya, two part question.
03:30 One is with regard to, is this CAPEX going to be an ongoing plan or is this FY 25 specific?
03:37 How much is that number if you can tell us?
03:40 Also with regard to CAPEX, is it an ongoing CAPEX plan, which is going to go beyond FY
03:48 25 as well, or is it going to be restricted to FY 25 and then you're good?
03:53 Second is how much is the CAPEX and how do you fund it?
03:56 Yeah, see, I will answer your second question first.
04:00 The CAPEX plan is for a thousand crores.
04:02 Out of this 550 crores has already been spent as of now.
04:05 Out of the balance 550 crores, the majority will be spent in this year, but a small portion
04:10 will be spilling over to the first quarter of the next year.
04:13 And as far as the funding of the CAPEX goes, it has been done entirely through internal
04:16 equipments.
04:17 So you mean FY 25?
04:20 Yeah.
04:21 Understood.
04:22 Just for clarification.
04:23 Thank you so much.
04:24 Okay.
04:25 That's all the time, unfortunately, that we have Aditya.
04:27 Very, very interesting.
04:28 Again, the conversation could go on, but that's all the time we have on the Small and Mid-Cap
04:34 Show for you today.
04:36 Hope this was productive.
04:37 From Mahima, myself, everyone who puts the show together, thanks so much for watching
04:41 and stay tuned to NDTV Profit for more updates.
04:44 Thanks.
04:45 Thanks.
04:45 Bye.
04:50 [music]

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