Stock Split Alert: Small-Cap Iron & Steel Maker Declares Q2 Earnings, Announces 1:5 Stock Split

Q2 earnings show increased EBITDA and profit before tax, but profit after tax declines 24 per cent to Rs 153.16 crore due to deferred tax provisions.

Jai Balaji Industries Ltd (JBIL), a manufacturer of iron and steel products, announced its Q2 earnings today, November 12, 2024, along with a 1:5 stock split. The split will convert each equity share with a face value of Rs 10 into five equity shares with a face value of Rs 2 each, aiming to improve liquidity and attract retail investors.

In its Q2 earnings, JBIL reported a 0.64 per cent year-on-year (YoY) revenue growth to Rs 1,556.57 crore. EBITDA rose 6.89 per cent YoY, and profit before tax increased 5.55 per cent YoY. However, profit after tax declined 24 per cent to Rs 153.16 crore due to deferred tax provisions.

On a quarter-on-quarter (QoQ) basis, the company saw a 9.41 per cent revenue decline and a 25.95 per cent drop in profit before tax, attributed to reduced production and sales realization of finished products like TMT bars, pig iron, and sponge iron. The company’s ongoing Rs 1,000 crore capex remains on track and is expected to enhance future performance.

The management emphasized maintaining strong half-yearly results despite market challenges. While QoQ performance faced headwinds, YoY figures remained steady. JBIL expressed optimism for H2FY25, citing potential benefits from its strategic capex on value-added products. The company remains committed to leveraging its strengths for sustainable growth and addressing evolving domestic and international market demands.

JBIL’s shares closed at Rs 1,008.65 on the NSE today.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.