During Wednesday’s trading session, the shares of a manufacturer of CRGO silicon steel cores for the power & distribution transformer industry of India hit a 20 percent lower circuit on NSE.
The sharp drop followed the company’s announcement of H2 FY25 financial results, which revealed a 23.6 percent HoH decline in net profit and a contraction in EBITDA margins by 174 bps YoY to 9 percent.
Stock Performance
With a market cap of Rs. 526.8 crores, the shares of Jay Bee Laminations Limited hit a 20 percent lower circuit at Rs. 233.45 on NSE, as against its previous closing price of Rs. 291.8. Jay Bee Laminations was listed on the NSE in September 2024.
The stock hit its 52-week high at Rs. 456 on 3rd December 2024, and compared to its current price levels, the stock is trading at a discount of nearly 49 percent.
What’s the News
According to the latest regulatory filings with the NSE, Jay Bee Laminations Limited announced the financial results for H2 FY25, through the latest filings on Tuesday, post-market hours.
For H2 FY25, Jay Bee Laminations reported a revenue from operations of Rs. 214.3 crores, reflecting a rise of around 40 percent HoH from Rs. 153.2 crores in H1 FY25, and a year-on-year growth of around 44 percent from Rs. 148.6 crores in H2 FY24.
In contrast, the net profit declined to Rs. 11 crore in H2 FY25, marking a 23.6 percent drop from Rs. 14.4 crore reported in the previous quarter, but a 13.3 percent rise compared to Rs. 9.7 crore in H2 FY24.
Additionally, EBITDA fell to Rs. 20 crores in H2 FY25, representing a 13 percent decline from Rs. 23 crores reported in the previous quarter, but a 21.5 percent rise compared to Rs. 16.5 crores in H2 FY24. Meanwhile, EBITDA margins contracted to 9.36 percent in H2 FY25, down from 14.97 percent in H1 FY25 and 11.1 percent in H1 FY24.
In FY25, the revenue growth was lower than volume growth, led by lower raw material prices, while EBITDA margin increased slightly due to consistent efforts on cost control and increased production volumes. However, a decrease was observed in H2 compared to H1 in EBITDA Margins due to raw material fluctuations and expenses related to future growth.
Capacity Expansion
Jay Bee Laminations Limited currently operates with an installed capacity of ~18,060 MTPA, including Unit I and Unit II, while an additional capacity is being set up at Unit III.
In FY25, the company achieved a 32 percent increase in annual production volumes compared to FY24, surpassing its targeted growth of 30 percent. As of October 2024, the total installed capacity stood at 18,060 MTPA. The company aims to expand this to 19,260 MTPA by May 2025, and further to 23,340 MTPA by FY26.
The installation of a new 1,200 MTPA capacity at Unit III has been completed, with commercial operations expected to commence in May 2025. Additional machinery is also scheduled for installation at Unit II during FY26, which will raise the total installed capacity to 23,340 MTPA.
About the company
Established in 1988, Jay Bee Laminations Limited is a manufacturer of CRGO silicon steel cores for the power & distribution transformer industry of India, with manufacturing units located in Noida & Greater Noida in Uttar Pradesh.
Its product portfolio includes cut laminations, slit coils, and assembled cores, primarily used in the transformer industry. The company currently supplies components for transformers up to the 400 kV class, which is approved by Power Grid Corporation of India Limited (PGCIL).
Written by Shivani Singh
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