After Gaining 90% From 52W-Low JTL Industries Records 56% Sales Volume In Q2

A small-cap firm in the metal industry is JTL Industries. On September 26, 2023, the stock reached a new 52-week high of Rs 239.80, which at today's market price indicates that the stock has gone up by 90% from its one-year low. The company has today released financial results for Q2FY24 after a robust year-long surge.

An impressive rise of 56.78% over Q2 FY23, JTL's highest-ever quarterly sales volume of 81,686 MT was the result of strong demand for structural steel tubes and pipes in both domestic and global markets.

With its highest-ever H1 sales volume hitting a record-breaking 1,59,028 MT, the firm achieved a healthy rise of 54.66% compared to H1 FY23, marking a significant achievement. Sales of value-added products at JTL grew dramatically, by a significant 50.93%, from 40,221 MT in H1 FY23 to 60,708 MT in H1 FY24.

JTL recorded strong value-added product sales during Q2FY24, totalling a sizeable 28,202 MT. This highlights an astounding YoY growth rate of 14.63%, surpassing the sales volume of 24,601 MT achieved during the same time in the previous fiscal year or Q2 FY23.

JTL reported a robust export sales volume of 4,393 MT, up 14.49% from the Q2 FY23 period's sales volume of 3,837 MT. 5.38% of the total sales volume for Q2 FY24 came from exports.

Commenting on the business update, the management of the company said, "We are really happy to share our business performance for the Q2 FY24 period. This quarter we recorded our highest ever quarterly sale volume of 81,686 MT, increasing by 56.78% over Q2 FY23 period reflecting the continued patronage that we receive from our domestic as well as international clients.

We also achieved a significant milestone by recording our highest-ever H1 sales volume reaching an impressive 1,59,028 MT demonstrating a robust growth rate of 54.66% on YoY basis. Moreover, our steadfast commitment to reach the target of 50% contribution of value-added products by FY25 in our total sales mix is reflected by the significant increase in the share of value-added products, growing by 50.93% from 40,221 MT in H1 FY23 to 60,708 in H1 FY24 on absolute term basis, reaching to 38.17% in H1 FY24. This surge in demand of value-added product will aid us in increasing our turnover and EBITDA Margins."

"Further, we recorded a healthy growth in our export sales volume, even amidst the uncertainty in demand form international markets which were influenced by inflationary and interest rate headwinds. Our international sales grew significantly by 14.49% to 4,393 MT in Q2 FY24 compared to 3,837 MT in Q2 FY23. Going forward, we maintain an optimistic view.

As India continues to witness heavy traction in structural steel demand owing to hefty government spending towards infrastructure & nation building funded by private and public capex. Further, with the conclusion of monsoon season we expect new projects to start commencing and thereby giving good visibility for the demand of our products. At JTL, we remain committed to our growth strategy, which encompasses continued market expansion, operational excellence, customer-centric innovation, and stakeholder growth."

JTL Industries Limited is a dynamic steel tube manufacturer that is rapidly expanding and specializing in the production of hollow structures, pre-galvanized and galvanized steel pipes, large-diameter steel tubes, and ERW black pipes. With its registered office in Chandigarh, JTL Industries Limited is one of the steel tube manufacturers with the quickest rate of growth. The company has production plants in Chhattisgarh, Maharashtra, and Punjab. The company has a total capacity of 5,86,000 MTPA.