This Steel stock which deals in integrated manufacturers and suppliers of steel tubes, pipes, and other products with manufacturing facilities in India, was up by 5 percent after the company received an order worth Rs. 24 crore under Jal Jeevan Mission.
Share Price Movement
With a market capitalization of Rs. 3,889.18 Crores, the shares of JTL Industries Limited were up by 4.7 percent in the day’s trade touching a day’s high of Rs. 102.65 per share. The stock reiterated from the day’s high and was trading at Rs. 101.80 which is 3.85 percent higher than the previous closing price of Rs. 98.03 apiece.
It has delivered a negative return of 25 percent which has underperformed the Nifty Index in the past year.
What Happened?
The shares of JTL Industries rose after exchange filings revealed that the company received an order from Public Health Engineering, Jammu under the Jal Jeevan Mission scheme to supply 3,000 metric tonnes of Galvanised Iron (GI) pipes of various sizes. The work order is valued at Rs. 24 crores and the delivery is scheduled to be completed within the next 30 days.
Jal Jeevan Mission Outlook
In the recently announced Union Budget 2025-26, the Jal Shakti Ministry was allocated around Rs. 67,000 crore and estimates an additional Rs. 4 lakh crore to be required to complete the Jal Jeevan Mission (JJM) and saw an extension of the initiative till 2028. JTL Industries is a key supplier under JJM stands to benefit from this initiative and holds a track record of delivering high-quality GI pipes for Water Infrastructure projects as per the company’s filing.
Management Commentary
Commenting on receiving the order, the company’s management said “The extension of JJM presents significant opportunities, and with our established track record as a trusted supplier to the government, JTL is well-positioned to support its next phase. Our proven ability to meet diverse requirements with high-quality GI pipes, backed by our added manufacturing capacity, and our successful history in government projects, ensures we are ready to contribute to large-scale infrastructure initiatives moving forward.”
Q3YF25 Financial Highlights
JTL Industries’s consolidated revenue from operations has declined by 20.45 percent year on year from Rs. 567 crore in Q3FY24 to Rs. 451 crore in Q3FY25 and a 6 percent decline on quarter on quarter basis from Rs. 480 crore in Q2FY25.
The company’s consolidated net profit has declined by 16.66 percent year on year from Rs. 30 crores in Q3FY24 to Rs. 25 crores in Q3FY25. As compared to Q2FY25, the company’s profits have declined by 3.84 percent quarter on quarter basis from Rs. 26 crore.
Business Segments
They recognize their revenue from operations under the Steel Tubes, Pipes, and Structures as its sole segment as of the December 2024 quarter.
Company Overview
JTL Industries Limited was established in 1991. They specialize in manufacturing ERW steel pipes and galvanized tubes, with a current production capacity of around 6,86,000 MTPA with an expansion plan to increase by 13,14,000 MTPA in FY25 and FY27 to reach 20,00,000 MTPA.
Written By Santhosh S
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