Jubilant Industries locks in 5% upper circuit amidst agri biz demerger plan

Shares of Jubilant Industries locked in 5 per cent upper circuit at Rs 1,111.10 per share on the BSE in Tuesday’s intraday deals. In comparison the S&P BSE Sensex was trading 0.04 per cent higher at 75,421 levels.  

This came after the company on Monday delivered a triple digit rise in its net profits for the January-March quarter of fiscal year 2023-24 (Q4FY24). The company also announced a demerger plan for its agri and sulphuric business. 

Jubilant Industries saw a 128 per cent increase in its net profit, amounting to Rs 22 crore in Q4FY24 from Rs 9.7 crore year-on-year. 

Despite a 12.5 per cent decline in revenue to Rs 300.3 crore in Q4FY24 from Rs 343.4 crore in the previous year, the company saw an 11.5 per cent growth in its earnings before interest, tax, depreciation and amortisation (Ebitda), reaching Rs 22.3 crore from Rs 20 crore year-on-year.  Ebitda Margin also improved to 7.4 per cent in the March quarter from 5.8 per cent year-on-year.

On a full year basis the company’s revenues were Rs 1253 in FY24, down 14.9 per cent from Rs 1472 in FY23. While the net profit also dipped by 44.4 per cent to Rs 29 crore in FY24 from Rs 52 crore a year earlier.

Further, the Board of Directors of Jubilant Agri and Consumer Products, a wholly owned subsidiary of the company have approved a restructuring plan under which its Agri Products and Sulphuric Acid Business will be demerged in a separate company. 

This the company said will provide better focus on the performance polymers business. This will also help in diversifying its agri business, the management said. .

“The demerger will take place post completion of the ongoing composite scheme of arrangements betweenHSSS Investment Holding Private Limited, KBHB Investment Holding Private Limited, SSBPB Investment Holding Private Limited, Jubilant Industries and JACPL,” the company said in its investor presentation.