Jai Balaji Industries Announces Stock Split Amidst Profit Dip

Jai Balaji Industries reported a 24.01% decrease in post-tax profit to Rs 153.16 crore for Q2 2024. The board proposes a stock split to enhance liquidity. Despite flat revenue, the company plans significant capital expenditure to expand production capacities and upgrade operations.

Jai Balaji Industries, a key player in manufacturing ductile iron pipes, TMT bars, and other ferro alloys, disclosed a 24.01% decline in its post-tax profits for the second quarter ending in September 2024. The profit stood at Rs 153.16 crore compared to Rs 201.55 crore in the same quarter last year.

The company's board has taken a strategic step by proposing a stock split, aiming to break down equity shares from a face value of Rs 10 to five shares of Rs 2 each. This move is intended to increase the liquidity of Jai Balaji's stock in the market.

Chairman Aditya Jajodia attributed the profit dip to a Rs 60 crore deferred tax provision, and mentioned that revenue remained stable at Rs 1556.57 crore. Looking ahead, the company remains committed to a Rs 1000 crore capital expenditure plan to boost manufacturing capacities and upgrade operations.

(With inputs from agencies.)