JBF INDUSTRIES

Way to go!

The third largest manufacturer of POY in India, JBF Industries has posted encouraging results for the third quarter ended 31st December 2007. For the current Q3, net turnover of the company was at Rs.496.28 crores as against Rs.414.67 crore in corresponding quarter, previous year, an increase of 19.67%. Exports for current Q3 was at Rs.58.05 crores as against Rs.49.02 crores in Q3 FY07, an increase of 18.42%. EBIDTA for the quarter is Rs.69.73 crores as compared to same quarter previous year of Rs.51.24 crores, an increase of 36.08%. PBT was Rs.47.76 crores as against Rs.32.43 crores in the same period in the previous year, 47.40% rise. The net profit rose from Rs.23.37 crore in Q3 FY07 to Rs.30.33 crores for current Q3. On an equity of Rs. 59.56 crore, basic EPS was at Rs.5.04 compared to Rs.4.60 in previous years Q3. The plant capacities continued to work on nearly full capacity. The company has now undertaken expansion of its capacities for its polyester chips and its POY capacity. The Q3 FY 08 capacities for POY were 37,500 MT and for Polyester chips were 83,720 MT. The second phase of polyester chips plant at Gujarat is expected to be completed by September 2008. The company has set up a PET bottle grade and polyester films manufacturing facility in RAK, UAE, where JBF holds a 60% stake. The chips plant got commenced in July07, while the polyester film plant will commence operation by Q4 of current fiscal. Global private equity major CVCI will be investing, a total of US$125 million in JBF Global Pte Ltd, a wholly owned subsidiary of the company. These funds would be used for international operations of the Company, for expansions and acquisitions. Out of the above mentioned US$125 million, the company has already invested US$75 million in Q3, being the first tranche of the investment and the balance of US$25 million is to be invested shortly. Currently quoted at Rs.150, Q4 is also expected to be better, stay invested.