Kolkata:

Steel maker Jai Balaji Industries on Tuesday reported around 24 per cent year-on-year (YoY) decline in its net profit at ₹153.16 crore for the second quarter this fiscal due to a provision towards deferred tax.

The company’s net profit for the second quarter last fiscal stood at ₹201.55 crore. The Board of the company has approved splitting of one equity share into five with a view to enhance the liquidity of the steel manufacturer’s equity shares to encourage participation of retail investors.

During Q2FY25, the company’s EBITDA grew 6.89 per cent YoYat s ₹228.19 crore, while EBITDA margin rose 86 basis points YoY at 14.66 per cent.

“During the second quarter, profit after tax declined as we made a provision for a non-cash item for deferred tax. The revenue remained flat as certain volumes also remained flat. It was a post-election quarter, so there was a little slowdown in government spending,” saidAditya Jajodia, Chairman & MD,Jai Balaji Industries.

In a stock exchange filing, the Kolkata-based company said its board has approved splitting of each equity share of face value of ₹10 each into 5 equity shares of face value of ₹2 each, and accordingly approved an amendment to the capital clause of Memorandum of Association of the company and related articles.

“We have decided to split the share to increase the liquidity of stock in the market and encourage more retail participation,” the CMD said.

Jajodia informed that the ongoing capital expenditure of the steel maker to the extent of ₹1000 crore for capacity expansion and modernisation of plants has been on schedule as envisaged. The company expects that the capacity expansion and modernisation to complete by June, 2025.

EoM

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