JTL Industries Limited recorded Highest Ever Quarterly and Yearly Sales volume in Q4 FY23 and FY23

JTL Industries Limited (JTL), is a fast-growing steel tube manufacturing company having manufacturing facilities at 4 locations. The installed capacity is enhanced from 4,50,000 MTPA to 5,86,000 MTPA. Further, JTL has announced an update on its business performance for the Quarter and Financial Year period ended 31st March, 2023.

JTL has recorded highest ever quarterly sales volume of 80,177 MT, showing a robust growth of 23.06% over Q4 FY22 and 39.88% over Q3 FY23. Further, JTL recorded a total sales volume of 2,40,316 MT for Financial Year period ended 31st March, 2023 showcasing a growth of 10.87% over FY22. The sales volume was boosted owing to healthy demand and consolidation of Chetan Industries Limited.

JTL showcased healthy growth in export sales and recorded a volume of 5,797 MT, showing a robust growth of 63.39% over Q4 FY22 and 28.00% over Q3 FY23. Exports sales contributed ~9% to total sales volume for Q4 FY23.

To cater to the sectoral demand, JTL has completed its amalgamation with Chetan Industries Limited which has led to enhancement of capacity by 1.5 Lakh Ton in Coils, 1 Lakh Ton in Steel Tubes and Pipes, provided and advantage of proximity to the source of raw material, backward integration of operational process, and cost synergies. With the said addition, JTL has also commercialized the manufacturing capacity for value added products of 36,000 MTPA at Mandi Plant, Punjab. Accordingly taking our total operational capacity to 5,86,000 MTPA.

All the manufacturing plants of JTL are now capable of producing and supplying value added products.

Commenting on the above business update, the management of the company said: "We are really happy to share our business performance for the quarter and financial year ended 31st March 2023. This quarter recorded the highest ever quarterly sales of 80,177 MT and reflects the continued patronage that we received from our domestic as well as international clients.

The merger between JTL and Chetan Industries Limited has been completed. The amalgamation marks an important milestone in the evolution of our organization. The merger will aid JTL to increase market share and cater customers to a greater extent by doubling the number of dealers and distributors to 600+ and augmenting our manufacturing capacity by 1,00,000 MTPA, of which 50% will be dedicated towards manufacturing of value-added products. This strategic addition is in line with JTL's mission of moving closer to the target of 10,00,000 MTPA by FY25. Moreover, backward integration will facilitate the entity to operate more competitively, yielding better EBITDA Margins and cashflows for the company.

We have also commenced manufacturing operation at Mandi Plant, Punjab by 36,000 MTPA of the remaining 50,000 MTPA capacity. This expanded capacity will focus on manufacturing of valueadded product which will cater to rising demand from domestic and international markets further adding on to our EBITDA margins and profitability.

At JTL, our focus and passion remain on ideating and creating awareness about our advanced, newer and value-added products designed specifically to meet the client requirement and this is reflective in our overall volume growth.

Further, our continuousfocus on scaling the export business by entering into newer export markets is yielding desired results as showcased by robust growth in the export sales and consequently recording highest quarterly sales volume in the international market.

We believe that we are just at the cusp of an exciting phase in the construction and infrastructure industry, where the traditional methods are paving way for environmentally friendly structural tube led construction in India and abroad and we at JTL are rightly equipped to capitalize on the opportunities that lie ahead of us."

Source : Equity Bulls

Keywords

JTLIndustries BusinessUpdate Q4FY23 FY2023