Jain Resource Recycling Q1 Results: Sales remain flat but margins, net profit see a dip

Jain Resource Recycling Ltd., the newly listed company on the exchanges, reported its first quarterly result after becoming a public company on Tuesday, October 21.

These earnings are for the quarter that ended in June and not in September.

Net sales for the June quarter increased by 3.5% from the year-ago period to ₹1,549 crore from ₹1,496 crore.

However, its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the period stood at ₹90.2 crore, which is a decline of 4.1% from the ₹94.1 crore it reported during the June quarter last year.

EBITDA margin for the period narrowed slightly to 5.82% from 6.29% last year.

Among its various business segments, revenue from the Aluminium and Aluminium Alloys business increased to ₹88.7 crore from ₹42 crore last year. However, the figure is lower than the ₹130.6 crore it reported during the March quarter.

Revenue from the Lead & Lead Alloy Ingots increased from ₹597 crore last year to ₹715.2 crore in the June quarter, which is also lower than the ₹828 crore it reported during the March quarter.

Copper & Copper Ingots revenue declined from ₹773 crore to ₹696 crore in June, and ₹793.1 crore in March.

Jain Resources Recycling have had 13 trading sessions so far since its listing. The stock listed at a 37% premium in comparison to its issue price of ₹232 and has moved higher since.

In an interaction with CNBC-TV18 on the day of its listing, the management of Jain Resources told CNBC-TV18 that the company has been growing at a 30% momentum and it would expect to sustain that going forward.

The stock ended 3.4% higher on Monday at ₹350, which is a 50% premium compared to its issue price of ₹232.