JTL Industries Ltd - Q2 FY2023-24 Business Update

JTL Industries Limited ("JTL" or "The Company"), is a fast-growing dynamic steel tube manufacturing company which specializes in producing ERW Black Pipes, Pre-Galvanized and Galvanized Steel Pipes, Large Diameter steel tubes and pipes, and hollow structure. JTL is delighted to announce an update on its business performance for Q2 FY24 period.

Quarterly Business Sales Volume Update:

- JTL has recorded its highest ever quarterly sales volume of 81,686 MT, exhibiting a vigorous growth of 56.78% over Q2 FY23 driven by robust demand for structural steel tubes and pipes in both domestic and international markets.

- The Company achieved a significant milestone with its highest ever H1 sales volume reaching an unprecedented 1,59,028 MT, demonstrating a robust growth of 54.66% compared to H1 FY23. JTL witnessed a remarkable increase in sales of value-added products, with a substantial 50.93% growth, rising from 40,221 MT in H1 FY23 to 60,708 MT in H1 FY24.

- JTL reported healthy quarterly sales figure for its value-added products, reaching a substantial 28,202 MT. This underscores a remarkable YoY growth rate of 14.63%, surpassing the sales volume of 24,601 MT recorded during the same period in the previous fiscal year (Q2 FY23).

- JTL reported a healthy export sales volume of 4,393 MT, compared to sales volume of 3,837 MT during Q2 FY23 period growing by 14.49%. Exports sales contributed ~5.38% of total sales volume for Q2 FY24.

Commenting on the above business update, the management of The Company said: "We are really happy to share our business performance for the Q2 FY24 period. This quarter we recorded our highest ever quarterly sale volume of 81,686 MT, increasing by 56.78% over Q2 FY23 period reflecting the continued patronage that we receive from our domestic as well as international clients.

We also achieved a significant milestone by recording our highest-ever H1 sales volume reaching an impressive 1,59,028 MT demonstrating a robust growth rate of 54.66% on YoY basis. Moreover, our steadfast commitment to reach the target of 50% contribution of value-added products by FY25 in our total sales mix is reflected by the significant increase in the share of value-added products, growing by 50.93% from 40,221 MT in H1 FY23 to 60,708 in H1 FY24 on absolute term basis, reaching to 38.17% in H1 FY24. This surge in demand of value-added product will aid us in increasing our turnover and EBITDA Margins.

Further, we recorded a healthy growth in our export sales volume, even amidst the uncertainty in demand form international markets which were influenced by inflationary and interest rate headwinds. Our international sales grew significantly by 14.49% to 4,393 MT in Q2 FY24 compared to 3,837 MT in Q2 FY23.

Going forward, we maintain an optimistic view. As India continues to witness heavy traction in structural steel demand owing to hefty government spending towards infrastructure & nation building funded by private and public capex. Further, with the conclusion of monsoon season we expect new projects to start commencing and thereby giving good visibility for the demand of our products.

At JTL, we remain committed to our growth strategy, which encompasses continued market expansion, operational excellence, customer-centric innovation, and stakeholder growth.

Source : Equity Bulls

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JTLIndustries Q2FY2024 BusinessUpdate