JTL Industries shares touch record high after declaration of Q3 business update
Stock market today: After announcement of business update for September to December 2023 quarter, JTL Industries shares witnessed buying interest despite weak stock market sentiments. JTL Industries share price today opened upside at ₹245.10 apiece on NSE and went on to touch intraday high of ₹253 per share levels, which turned out its new life-time high on NSE. While climbing to its new high, JTL Industries share price recorded intraday gain of around 6.50 per cent during Tuesday dealings.
JTL Industries Q3FY24 business update
In its stock market exchange filing, JTL Industries Ltd reported its highest ever quarterly sales volume of 1,00,905 MT, exhibiting a rigorous and robust growth of around 76% over Q3 FY23, driven by healthy demand for its structural steel tubes and pipes finding application in infrastructure and industrial sectors in both domestic and international markets.
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JTL Industries recorded decent growth in volumes of value-added products which stood at 19,789 MT for Q3FY24. This underscores a remarkable YoY growth rate of 35.39%, surpassing the sales volume of 14,616 MT recorded during Q3 FY23. During the current quarter, the Galvanization facility was slightly impacted due to scheduled maintenance of Galvanization pot, a necessary measure taken periodically by The Company to uphold product quality and standards. This reduced overall operating capacity and in turn impacted the overall volumes for said segment. The Company, however, has swiftly addressed the maintenance requirements, and JTL aims to recover the lost volumes in upcoming quarters.
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In terms of 9MFY24 performance, The Company continues to scale significant milestone and has recorded highest ever 9M sales volume reaching an unprecedented 2,59,933 MT, surpassing FY23 sales volume of 2,40,316 MT and demonstrating a robust growth of 62.32% compared to 9M FY23. JTL witnessed a remarkable increase in sales of value-added products, with a substantial 46.79% growth, rising from 54,837 MT in 9M FY23 to 80,497 MT in 9M FY24.
CAPEX drive
In Q3FY24, JTL through its wholly owned subsidiary JTL Tubes Limited, is embarking on a groundbreaking journey with the establishment of a mega capacity augmentation project in Maharashtra. This mega project is poised to substantially boost The Company’s manufacturing capacity, facilitating the expansion and diversification of its product portfolio. Through this capex, JTL aims to incorporate additional production lines, enhance its capability to manufacture galvanized, pre galvanized, colour coated products, and strengthen its competitiveness through both forward and backward integration, and become a leading provider of one stop solutions for all structural steel requirements.
To finance this ambitious project, JTL is set to raise ₹13,100 Mn through various routes, including but not limited to Qualified Institutional Placement (QIP). Within the total fundraise, the promoter and promoter group will be contributing ₹5,400 Mn, while the public, nonpromoter group will be contributing ₹2,700 Mn. The remaining ₹5,000 Mn will be garnered through the QIP route.
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Commenting upon the Q3FY24 business update, JTL Industries management said, ““We are really happy to share our business performance for the Q FY24 and 9MFY24period.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.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 02 Jan 2024, 02:49 PM IST
