JTL Industries & Nabha Steels records healthy volume of 96,400 MT

JTL Industries Limited ("JTL" or "The Company"), is a fast-growing dynamic steel tube manufacturing company which specializes in producing ERW Black Pipes, PreGalvanized and Galvanized Steel Pipes, large diameter tubes and pipes, and hollow structure sections. JTL is pleased to share a comprehensive update on its business performance for Q1FY25.

JTL Industries has demonstrated a significant sales volume growth of a 10.8% increase on a YoY basis, reaching 85,674 MT in Q1FY25 from 77,342 MT in Q1FY24. This growth is fueled by strategic initiatives and operational excellence, driven by strong demand for structural steel tubes and pipes in infrastructure and industrial sectors in both domestic and international markets. For Q1FY25, JTL recorded sales volumes of 21,261 MT for value-added products, contributing for 25% of the total sales mix. JTL has also achieved its highest-ever quarterly sales volume in term of export volumes, showcasing a strong growth of 31.4% from 4,503 MT in Q1FY24 to 5,917 MT in Q1FY25. Export sales contributed 6.9% to the total sales volume for Q1 FY25.

Performance of Nabha Steels & Metals

As per our internal schedule, we have successfully completed the commercialization of the first phase of Nabha Steels and Metals, which began operations in June. This phase has demonstrated a strong performance, achieving overall sales of 10,726 MT. This acquisition represents a significant milestone in JTL's comprehensive backward integration strategy, positioning us as a one-stop solution provider with an expanded product portfolio. This integration is anticipated to improve yield, generate synergies, and boost profitability.

Management Commentary

"At JTL Industries, we remain committed to our strategic initiatives aimed at sustainable growth and market leadership. Our continuous expansion efforts, both organically and through strategic acquisitions, underscore our dedication to enhancing production capacity and meeting evolving market demands.

Our strategic priorities remain focused on enhancing operational efficiency, expanding our product range, and capitalizing on market opportunities. We are progressing according to our timeline to launch DFT lines, which will significantly boost our manufacturing capabilities. With this implementation, we anticipate a substantial increase in plant capacity utilization and production efficiency, underscoring our commitment to operational excellence. This improvement will allow us to effectively meet the growing demands of our valued customers, supported by the introduction of over 300 Value-Added SKUs.

A cornerstone of our strategy is our goal to achieve a 50% contribution of value-added products in our total sales mix. This strategic focus not only diversifies our product offerings but also enhances our turnover and improves EBITDA margins, reflecting our focus on higher margin offerings. The increasing demand for value-added products underscores their importance in our growth trajectory.

Looking forward, we anticipate robust export demand for our structural pipes, driven by their quality and reliability. We are confident that our export contribution will see significant growth in the foreseeable future, further strengthening our global footprint and bolstering our financial performance.

In summary, JTL Industries remains committed to sustainable growth, driven by strategic expansions, a focus on value-added products, and robust export opportunities. These initiatives are poised to enhance our market position and deliver value to our stakeholders."

Source : Equity Bulls

Keywords

JTLIndustries NabhaSteels BusinessPerformance Q1FY2025 Q1FY25