JTL Industries Shares Rally 7% After Achieving Highest Ever Annual Sales Volume

On Tuesday, shares of JTL Industries surged around 7 per cent after the company informed stock exchanges about achieving the highest ever annual sales volume in FY24.

The Company said in an exchange filing that, "JTL has achieved a remarkable milestone by attaining its highest-ever sales volume, reaching an unprecedented 341,846 MT. This surpasses the sales volume of the previous fiscal year, FY23, which stood at 240,316 MT, showcasing a robust growth rate of 42.25%. Additionally, JTL experienced a significant rise in sales of value-added products, with a notable increase of 34.45%, climbing from 74,243 MT in FY23 to 99,818 MT in FY24."

"The company is on track with its announced capex plan with the initiation of the dispatch and timely delivery of DFT machines and commissioning of the same by Q1FY25. Through this commissioning of DFT plant, we would be able to elevate plant capacity utilization, a testament to our commitment to operational efficiency. JTL will be able to manufacture higher diameter pipes which would increase our kitty by 300+ SKUs of Value Added products. This strategic move is anticipated to significantly boost our EBITDA margins, reflecting our commitment to innovation and profitability," said JTL Industries in a regulatory filing.

"We are pleased to present a comprehensive overview of our performance for FY24. It has been a year of remarkable achievements and substantial growth.Our steel tubes and pipes have achieved significant milestones with our highest-ever yearly sales volume totaling to an impressive 341,846 MT. This outstanding achievement, surpassing the previous year's volume by 42.25%, underscores our stanch dedication to growth and customer satisfaction. Moreover, our focus on value-added products has yielded promising results, with sales growing by 34.45% to 99,818 MT compared to 74,243 MT in FY23," the management said.

"Our strategic focus remains on enhancing operational efficiency, expanding our product portfolio, and capturing market opportunities. Our DFT plant will mark a pivotal advancement in our manufacturing capabilities and with its introduction, we anticipate a marked increase in plant capacity utilisation, increase efficiency in production reflecting our commitment to operational excellence and meeting the escalating demands of our valued customers with the addition of 300+ Value Added SKUs," the management of JTL Industries said.

"As we move ahead, our outlook remains positive. India is experiencing significant momentum in the demand for structural steel, driven by substantial government investments in infrastructure and nationbuilding supported by both private and public capital expenditures. Accordingly we anticipate an increase in demand driven by infrastructure and construction developments following the general elections, to boost overall JTL's sales volume. We are confident in our ability to capitalize on emerging market trends, leverage our strengths, and navigate challenges effectively," the management further added.

With its registered office situated in Chandigarh, JTL Industries Limited is one of the leading steel tube producers. The company operates factories in Chhattisgarh, Maharashtra, and Punjab. The enterprise has a total capacity of 5,86,000 MTPA. The firm is a well-known Star Export House, and among the products it offers are Solar Structures, Hollow Sections, MS Black Pipes, and GI Pipes, all of which are used in a variety of industrial and infrastructure applications. There are three categories of each product: hot dip galvanized, pre-galvanized, and uncoated (MS black) grades.