JTL Industries Enters Into JV With Singla Constructions To Participate In Railway Tender

Following the company's entry into a special purpose Joint Venture Agreement with M/s Singla Constructions Limited to jointly participate in a Railway Tender and subsequently execute the contract, the shares of JTL Industries opened higher on the NSE on Thursday, November 21, at Rs 94.61 apiece. The stock is anticipated to attract market attention today.

JTL Industries recently secured an order for the delivery of ISI-certified Galvanised Mild Steel (GMS) tubes for 95% of the sizes, or 35,473 MT of the entire order, on November 6th, after first emerging as the L1 bidder for the Jal Jeevan Mission project. The win highlights JTL's strong position in providing high-quality, value-added products that satisfy necessary government criteria, with an order value of Rs 265 crore.

With a 26.3% YoY rise, JTL Industries has shown notable development in sales volume, rising from 81,686 MT in Q2FY24 to 1,03,193 MT in Q2FY25. The robust demand for structural steel tubes and pipes in the industrial and infrastructure sectors in both local and foreign markets is the driving force behind these strategic objectives and operational superiority. Value-added product sales at JTL were 23,752MT in Q2FY25, accounting for 26% of the overall sales mix. In terms of export volumes, JTL has also reached its highest-ever quarterly sales volume, accounting for 14% of the entire volume mix.

With a total revenue of Rs 4,874 million in Q2 FY25-a minimal drop from Rs 5,051 million in Q2 FY24-JTL Industries showed tenacity in its financial performance. With an EBITDA margin of 7.7%, the quarter's EBITDA came to Rs 377 million. EBITDA climbed 6.3% to Rs 815 Mn for H1 FY25, demonstrating its operational effectiveness and sound financial standing. For the second quarter of FY25, the firm recorded a PAT of Rs 264 million, with a PAT margin of 5.4%. Its PAT on a YTD basis has risen 7.1% to Rs 571 million and interestingly, the sales volume increased by 26.32% to 103,193 MT from 81,686 MT in Q2 of FY24.

To increase the liquidity of its shares and make them more affordable to small and retail investors, the corporation additionally split its shares in the quarter that ended on September 30, 2024. Each equity share with a face value of Rs 2 has been split into two equity shares with a face value of Rs 1. The authorised share capital has grown to Rs 55.00 crores as a result of this split, whereas the paid-up share capital is now Rs 39.31 crores. The record date for the stock split purpose was November 15, 2024.

With its registered office in Chandigarh, JTL Industries Limited is one of the steel tube producers having production plants in Chhattisgarh, Maharashtra, and Punjab.