Monday, May 20, 2024

JTL Industries Ltd. Reports FY24 Earnings, Achieves highest ever Revenue of Rs. 20,402.3 Mn

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. 20,402.3Mn. 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 our products and the effective execution of strategic expansion initiatives throughout the year.

On the profitability front we remain committed on gradually increasing the same, since EBITDA for this fiscal year reported at Rs. 1,521.9Mn with an EBITDA margin of healthy at 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.

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, 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.

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