JTL INDUSTRIES

Pole player in A-Z of steel pipes

Chandigarh-headquartered JTL Industries is among the fastest growing steel tube manufacturers specialising in producing ERW black pipes, pre-galvanised and galvanised steel pipes, large-diameter steel tubes and pipes, and hollow structures. The company operates mod ern manufacturing facilities in Punjab, Maharashtra and Chhattisgarh. Its cumulative capacity for pipe manufacturing is approxi mately 9,36,000 mtpa, with around 3,00,000 mtpa dedicated to back ward integration.

The company is a recognised export house and its product range includes GI pipes, MS black pipes, hollow sections and solar structures — catering to various industrial and infrastructural applications. All its products are available in hot-dip galvanised, pre-galvanised and un coated (MS black) grades.

The company has made rapid strides in its financial performance. During the last 12 years, sales turnover has expanded around 40 times from Rs 97 crore in fiscal year 2014 to Rs 1,913 crore in fiscal year 2025, with operating profit shooting up 41 times from Rs 3 crore to Rs 123 crore and the profit at net level surging from Rs 1 crore to Rs 99 crore. What is more, prospects for the company going ahead are all the more promising. Consider:

DIVERSE USES

• The company has 10 registered brands offering a cumulative 1,000-plus SKUs. These products find ap plications across diverse industries such as construction, core infrastructure, heavy vehicles, water distribution and energy. With a network of over 1,000 dealers and dis tributors, it effectively serves the entire nation and even international markets spanning 20 countries across 5 con tinents.
• JTL has been granted permission by the National Company Law Tribunal (NCTL) to commence operations at RCI Industries and Technologies. JTL had entered into an MoU with RCI for production of up to 200 mt per month of copper and brass alloys via hob work. This manufacturing facility will enable JTL to supply bullet castings and other non-ferrous metal products critical to the defence sector, pushing up its top- as well as bottomline with effect from fiscal 2027. With the green signal from NCLT, the Buddy (Himachal Pradesh) plant of RCI will be un der the complete ownership of JTL. This measure will not only help JTL enter new segments but also gain new customers and rela tionships.

NEW TECH

• Moreover, to enhance its manufacturing capabilities, the company has recently implemented Direct Forming Technology (DFT) at its Mangaon facilities, which will be around 1 lakh tonnes. This initiative will not only enhance capacity utilization and manufacturing efficiency but will also open doors to new geographical mar kets. This will also increase SKUs to 1,500 SKUs.
• Simultaneously, the management is strategically outlining a significant capacity expansion initiative in Maharashtra through its subsidiary, JTL Tubes Limited, which will further elevate the company’s manufacturing ca pability, allowing it to broaden its product portfolio and of fer an array of products under one roof.
• In order to meet the desired target, it will raise Rs 1,310 crore through various means. Of this fundraise, it will raise Rs 810 crore via fully convertible warrants on a prefer ential basis through the promoter and non-promoter cat egories. The remaining Rs 500 crore will be raised through the QIP route. Post completion of expansion, its kitty of value added will increase, which will increase EBITDA per tonne as well. In FY 2026, we expect the company to register an EPS of Rs 3.4, which is likely to rise to Rs 4.15 in FY 2027. The shares are currently traded at a price of around Rs 75 per piece. Some analysts expect the price to move up to around Rs. 100 within a year or so.

PERFORMANCE INDICATORS (Rs. in crore)

VASCON ENGINEERS

Leader in multi-sector construction

Vascon Engineers is a leading, Pune-head quartered construction and engineering company, with rich experience of around four decades in conceiving, developing, constructing and managing varied projects in multiple sectors like residential, industrial, IT parks, malls & multiplexes, hos pitality, community welfare centres, schools and hospitals. During its existence of around 40 years, it has created a num ber of projects of eminence and splendour on a turnkey basis. By now, it has completed 225 projects with a construction area of over 50 million square feet. The company is known for maintaining high quality standards and for timely execution of projects, including landmark ones like Ruby Mills (Dadar, Mumbai), Suzlon One Earth (Pune), Symbiosis College (Pune), Indira Gandhi International Airport (New Delhi) and a multi-level car park (New Delhi).

Little wonder that the company has been performing very well on the financial front. During the last 12 years, its sales turnover has expanded from Rs 624 crore in fiscal 2014 to Rs 1,078 crore in fiscal 2025, with operating profit shoot ing up over six times from Rs 14 crore to Rs 87 crore and a net profit of Rs 130 crore, in striking contrast to a loss of Rs 43 crore in fiscal 2014. Prospects for the company going ahead are all the more encouraging. Consider:

• Vascon has entered the Mumbai residential rede velopment scene with a bang with the launch of ‘Vascon Orchids’, a luxury residential redevelopment project in Santacruz, a western Mumbai suburb. The project has an expected gross development value (GDV) of Rs 300 crore.

GOA PROJECTS

• The company has also won two construction or ders worth Rs 310 crore from Goa. The scope of the work includes the construction of two terminal buildings, a rope way tower foundation and other site development work in Panaji and Reis Magos.
• The company has won an order worth Rs 85.43 crore from Yucca Promoters LLP to construct a commercial building in Pune. The work has been awarded on a lump sum basis and has to be completed within three years. The promoter will share a 50 per cent profit in Yucca Promoters LLP.
• After including these orders, the order book stands at a robust Rs 2,825 crore, providing 2.8 times visibility of strong rev enues in FY2025. The manage ment has targeted an order book of Rs 4,000 crore by the end of the current fiscal year. In order to ex ecute these orders, the company is seeking to augment bank guarantees by a minimum amount of Rs 100-150 crore. Further, almost 78 per cent of the order book is towards government projects, which provides visibility of faster execution and uninterrupted cash flows.

REVENUE ‘LAG’

• In the case of the real estate business, the nature of the book-keeping is such that there can be some time differ ence between booking of expenses and booking of revenues. In the case of Vascon, a large part of its real estate project portfolio is completed, and the company will start seeing a positive reflection in the results from its real estate business segment from next year onwards.
• The company’s financial position is steadily improv ing. As on March 31, 2025, its reserves stand at Rs 867 crore– over three and a half times its equity capital of Rs 226 crore. The company has steadily reduced its debt from Rs 360 crore in fiscal 2014 to Rs 206 crore in fiscal 2025, in the process bringing down the finance costs from Rs 44 crore in fiscal 2014 to Rs 19 crore in fiscal 2025. Shares of the company are quoted around Rs 54.45. This is quite an attrac tive entry point for investors.

PERFORMANCE INDICATORS (Rs. in crore)