Metal Stock JTL Industries Jumps 4% On Highest Ever Quarterly Sales Volume In Q3

On Wednesday, the shares of JTL Industries opened at Rs 249 apiece and touched an intraday high of Rs 257.50 logging in a gain of 4.16% compared to a previous close of Rs 247.20. The metal stock price surged following the release of a thorough report detailing its business performance for the third quarter of FY24 and the first nine months of FY24.

With a quarterly sales volume of 1,00,905 MT, JTL has achieved its highest sales volume ever. This growth has been rigorous and robust, exhibiting a 76.05% increase over Q3 FY23 due to the healthy demand for its structural steel tubes and pipes, which are used in the infrastructure and industrial sectors in both domestic and international markets.

JTL's value-added product volumes climbed somewhat, reaching 19,789 MT in Q3FY24. This is an outstanding YoY growth rate of 35.39% and surpasses the 14,616 MT in sales volume that was reported in Q3 of FY23.

Regarding 9MFY24 performance, the company is still hitting major milestones and has produced the highest sales volume ever for 9M, achieving an amazing 2,59,933 MT, exceeding the sales volume of 2,40,316 MT for FY23 and exhibiting a strong rise of 62.32% when compared to 9M FY23. Value-added product sales at JTL surged dramatically, showing a significant 46.79% growth from 54,837 MT in 9M FY23 to 80,497 MT in 9M FY24.

Commenting on the business update, the management of JTL said, "We are really happy to share our business performance for the Q3 FY24 and 9M FY24 period. This quarter witnessed a record-breaking sales volume, reaching an all-time high of 1,00,905 MT, marking an impressive 76.05% increase compared to Q3 FY23. This robust performance underscores the ongoing support we receive from both our domestic and international clientele."

"We also achieved a noteworthy milestone with our highest-ever 9M sales volume totalling an impressive 2,59,933 MT and showcasing a robust growth rate of 62.32% on YoY basis. We are also continuously ascending to newer heights demonstrated through our consistent upward trajectory, showcasing our growth and increase in demand of our products.

Though we recorded a healthy growth in the sales of our value-added product of 35.39% on YoY basis, we encountered a bump in the sales of value-added product on QoQ basis due to scheduled maintenance of galvanization pot. This is a periodic measure taken by us to maintain product quality and standards. With our step ahead efforts we remained focused on restoring operations and are hopeful of regaining the lost volumes in the upcoming quarter. Further, we are also expecting our new galvanization facility to be up and running in Q4 FY24 thereby allowing us to further expand our volumes of value-added products and achieving our targets of 40% volume share from Value Added Products," the management added.

"On the expansion front, we are strategically planning a significant capacity expansion project in Maharashtra through our subsidiary, JTL Tubes Limited. This cutting-edge facility will leverage advanced technology to improve efficiency and diversify our product portfolio, showcasing our unwavering commitment to driving the growth and advancement of our business. Through this capital expenditure, we aim to redefine our position by incorporating more DFT machines, boosting our capacity for galvanized product manufacturing, and fortifying our position through both forward and backward integration," the management stated.

"To support the execution of the mega project, we plan to raise Rs. 13,100 Mn through various methods, including but not limited to Qualified Institutional Placement (QIP). In this, the promoter and promoter group will contribute Rs. 5,400 Mn, the public and non-promoter group will provide Rs. 2,700 Mn, and the remaining Rs. 5,000 Mn will be sourced through QIP," added the management.

"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 nation-building supported by both private and public capital expenditures. This traction in structural steel will provide an opportunity for us to grow and establish ourselves as a prominent name in the industry. At JTL, we remain committed to our growth strategy, which encompasses continued market expansion, operational excellence, customer-centric innovation, and stakeholder growth," the management of JTL Industries said in a statement.