Corporate Feature     

Published: May 15, 2024
Updated: May 15, 2024

JTL Industries Ltd.

Excellent show for FY 2024: Sales at highest ever level

JTL Industries Limited is a fast-growing dynamic steel tube manufacturing company that specializes in producing black steel pipes, pre-galvanized and galvanized steel pipes, large-diameter steel tubes and pipes, and hollow structures. The company in its Board Meeting held on 10th May 2024 announced financial result for Q4 and FY24.

Commenting on JTL’s performance, Mr. Pranav Singla, Executive Director said, “JTL industries achieved one of the most notable achievements by reaching its highest-ever sales volume of 3,41,846 mtpa for FY24 and with revenue clocking a significant milestone of Rs. 20,402.3 Mn. This exceeds the sales volume of the previous fiscal year, FY23, which stood at 2,40,316 mtpa, demonstrating a robust growth rate of 42.3%. Moreover, JTL experienced a significant uptick in sales of Value-Added Product (VAP), witnessing a notable increase of 34.5%, rising from 74,243 mtpa in FY23 to 99,818 mtpa in FY24.

JTL industries delivered a strong performance in FY24, marked by a remarkable 31.6% revenue growth reaching Rs. 20,402.3 Mn in FY24 compared to Rs. 15,499.2 Mn in FY23. This substantial growth was driven by high demand for the company’s products and the effective execution of strategic expansion initiatives throughout the year

“On the profitability front,” says Mr. Singla, “we remain committed on gradually increasing the same, since EBITDA for this fiscal year reported at Rs. 1,521.9 Mn with an EBITDA margin of healthy 7.5%. This performance was supported by several key factor, which includes the increase in the share of Value-Added Products (VAP), overall increase in scale of operations, and continuous focus on enhancing efficiency across our plants.”

Mr. Singla adds, we’re delighted to declare a dividend of Rs. 0.25 per share on the nominal value of Rs. 2/-, i.e. @ 12.50% for FY24, showcasing our steadfast dedication to enhancing shareholder value. We have recently acquired a 67% controlling interest in Nabha Steels and Metals, in Mandi Gobindgarh, Punjab. With a capacity of 200,000 mtpa, this acquisition bolsters our backward integration capabilities.

This strategic move enables JTL to venture into new product segments, broadening our market reach. Additionally, it will enhance coil production at the Raipur plant from 150,000 to 250,000 mtpa and increase long product output by 100,000 mtpa across Chhattisgarh and Punjab. “Furthermore,” according to Mr. Singla, “JTL intends to increase production capacity in Maharashtra and Chhattisgarh through expansion initiatives. The initial phase aims to raise the overall capacity from 600,000 to 1,000,000 mtpa by introducing Direct Forming Technology (DFT) lines alongside traditional forming technology. This expansion will focus on manufacturing galvanized steel tubes and pipes. This strategic initiative is set to improve plant capacity utilization, streamline manufacturing processes, and broaden the range of value-added products (VAPs), facilitating entry into new geographical markets. Following this, a significant expansion is planned for the Maharashtra plant to increase our manufacturing capacity to 2,000,000 mtpa. This expansion will enable JTL to effectively meet market demand and diversify its product portfolio

In conclusion, we are pleased to report strong financial results for FY24, highlighting our strategic direction in navigating challenging market conditions. The robust revenue growth led by strong volume growth and consequent increase in profitability reflects the effectiveness of our business strategies and the dedication of our team. As we look ahead, we remain committed to driving sustainable growth, delivering value to our stakeholders, and contributing to the economic development of the regions we serve.

JTL Industries Limited is amongst the fastest-growing steel tube manufacturers, and its registered office is in Chandigarh. The company has manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. The cumulative capacity of the company is 5,86,000 mtpa for Steel Pipes. The company is a recognised star export house, and its product offering includes GI Pipes, MS Black Pipes, hollow sections, and solar structures, which cater to diverse industrial and infrastructural applications. All the products are available in hot dip galvanised, pre-galvanized and without coated (MS black) grades.

July 15, 2024 - First Issue

Industry Review

VOL XV - 23
July 01-15, 2024

Formerly Fortune India Managing Editor Deven Malkan Assistant Editor A.K. Batha President Bhupendra Shah Circulation Executive Warren Sequeira Art Director Prakash S. Acharekar Graphic Designer Madhukar Thakur Investment Analysis CI Research Bureau Anvicon Research DD Research Bureau Manager (Special Projects) Bhagwan Bhosale Editorial Associates New Delhi Ranjana Arora Bureau Chief Kolkata Anirbahn Chawdhory Gujarat Pranav Brahmbhatt Bureau Cheif Mobile: 098251-49108 Bangalore Jaya Padmanabhan Bureau Chief Chennai S Gururajan Bureau Chief (Tamil Nadu) Ludhiana Ajitkumar Vijh Bhubaneshwar Braja Bandhu Behera

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