The shares of leading steel pipe manufacturers have fallen up to 7 percent after the company’s board of directors did not approve the Bonus Issue.
With a market capitalization of Rs 4,150.43 crore, the shares of JTL Industries Ltd were trading at Rs 223.00 per share, decreasing around 6.48 percent as compared to the previous closing price of Rs 238.45 apiece.
Reason for Fall:-
According to the company filing, JTL Industries Ltd’s board of directors has not approved the bonus Issue. However, the board has approved the stock split in the ratio of 1:2 which means sub-division/split of 1 equity share of the company having a face value of Rs. 2 each into 2 equity shares of the company having a face value of Rs.1 each.
Financial performance:-
Looking into the company’s financial condition, JTL Industries Ltd’s revenue zoomed by 2 percent from Rs 505 crore in Q1FY24 to Rs 515 crore in Q1FY25. During the same time frame, net profits increased by 24 percent from Rs 25 crore to Rs 31 crore.
Manufacture Facilities:–
The company has manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh. The the cumulative capacity of the company is 5,86,000 MTPA for Steel Pipes and 3,00,000 MTPA is backward integration.
Future Plans & Guidance:-
The company is confident of achieving 30% year-on-year revenue growth and a 40% value-added products (VAP) share. Capacity expansions are on track with no expected delays. With a solid cash position and promoter support, the company aims to maintain a target EBITDA of ₹500 per ton over the medium term.
JTL plans to invest Rs. 340 crore to increase capacity from 0.6 MTPA to 1 MTPA by FY25. The company also aims to increase its value-added product (VAP) share from 31% in FY23 to 50% by FY25. By the end of FY25, JTL plans to increase capacity by 0.2 MTPA at its Mangaon and Raipur facilities, bringing the total capacity to 1 MTPA.
Export Market and Industry Trends:
The company is experiencing strong export growth, with a significant increase in exports in the recent quarter. Positioned to benefit from the “China plus one” trade model, it anticipates continued growth by expanding SKUs and product ranges. Demand varies between scrap-based and non-scrap-based tubes due to different use cases.
Company Overview:-
JTL Industries Limited, situated in India, manufactures electric resistance welded (ERW) steel pipes, as well as section pipes and tubes. The company manufactures and sells iron and steel goods. Its goods and services include JTL MS Structura, JTL Jumbo, JTL Ultra, JTL Jal Jaan, and JTL Galva Flow.
Written by:- Abhishek Singh
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