Board Of JTL Industries Launches QIP Issue At A Floor Price Of Rs 221.57

On Friday, the shares of JTL Industries are likely to witness price action as the Board of Directors of the company at its meeting held today i.e. 18th July, 2024 approved the raising of funds by way of the issue of equity shares, through a QIP with a floor price of Rs 221.57 per equity share for the issue.

"We further wish to inform you that the 'Relevant Date' for the purpose of the Issue, in terms of Regulation 171 of the SEBI ICDR Regulations, is 18th July, and accordingly, the floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs 221.57 per Equity Share. Pursuant to Regulation 176(1) of the SEBI ICDR Regulations, the Company may offer a discount of not more than 5% on the floor price so calculated for the Issue," said JTL Industries in a stock exchange filing.

JTL Industries produced steady financial performance in Q1FY25. The company's revenue climbed to Rs. 5,153.8 Mn from Rs. 5,048.0 Mn in Q1FY24 due to strategic market expansion, higher sales volumes, improved product offerings, and increasing demand for its products. EBITDA jumped by 20.8% to Rs. 438.6 million in Q1FY25 compared to Q1FY24, and the EBITDA margin jumped to 8.5% in Q1FY25 from 7.2% in Q1FY24. Sales volume went up from 77,342 MT in Q1FY24 to 85,674 MT in Q1FY25, a 10.8% year-over-year growth. In particular, value-added products, with sales volumes of 21,261 MT, contributed 25% to the total sales mix. At 5,917 MT, quarterly export volumes hit a new high, a strong 31.4% rise over Q1FY24. The company's net profit for the quarter under review surged by 21.0% YoY to Rs.307 Mn.

"Looking ahead, the launch of DFT lines will bolster our manufacturing capabilites, increase plant capacity utilization, and enhance production efficiency. These advancements will help us meet the growing demands of our valued customers, supported by the introduction of over 300 value-added SKUs. We aim to achieve a 50% contribution from value-added products in our total sales mix, driving higher turnover and improved EBITDA margins. Our focus on expanding global footprint and seizing export opportunities remains strong. We anticipate robust demand for our structural pipes, supported by their quality and reliability, further strengthening our export contribution and enhancing financial performance," the management team of JTL Industries said.

"In conclusion, JTL Industries is dedicated to sustainable growth through strategic expansions, a robust focus on value-added products, and leveraging global opportunities. These initiatives position us well for continued market leadership and value creation for our stakeholders," the management further added.

With its registered office in Chandigarh, JTL Industries Limited is one of the steel tube producers with manufacturing facilities in Chhattisgarh, Maharashtra, and Punjab. The company's cumulative capacity is 3,00,000 MTPA for backward integration and 5,86,000 MTPA for steel pipes. The firm is a renowned Star Export House, and among the products it offers are hollow sections, solar structures, GI pipes, and MS black pipes, all of which have a variety of industrial and structural applications.