Small cap industrial stock JTL Industries declares 93% PAT growth in Q4, Board declared dividend

The Board of Directors have “Recommended an equity dividend of Rs. 0.20/- per share of face value of Rs. 2/- each i.e. @ 10% for the financial year ended March 31, 2023, on Equity Shares, which shall be subject to declaration of the same by the Members at the 32nd AGM of the Company. The Dividend, if declared at the AGM, shall be paid to the shareholders within 30 days of declaration of the same at the ensuing Annual General Meeting,” said JTL Industries in a stock exchange filing.

The company’s revenue from operations stood at Rs 472.62 Cr during Q4FY23, up by 13.50% from ₹416.38 Cr during Q4FY22. Its EBITDA reached ₹52.79 Cr during the quarter ended March 2023, up by 90.92% from ₹27.65 Cr reported in the year ago quarter. JTL Industries said its EBITDA margin jumped to 11.17% during the quarter under review as against 6.64% in Q4FY22. The company’s net profit reached ₹36.65 Cr during Q4FY23 as against 18.94 Cr during the year-ago quarter, up by 93.50% YoY and EPS climbed to ₹3.77 from ₹2.70.

“We are really happy to share our business performance for Q4 FY23 and Financial Year ended 31st March, 2023 period. During this Q4 FY23 and FY23 we recorded our highest ever quarterly and yearly sales volume that aided us in healthy revenue growth and profitability,” said the management of the company.

“This quarter also marked an important milestone for us and that was completion of amalgamation between JTL and Chetan Industries Limited which will aid us to become a stronger and dominant player in the industry by increasing our market share, doubling the number of dealers and distributors to over 600, and enhancing our manufacturing capabilities by 1,00,000 MTPA out of which 50% will be focused on producing value-added products. This is in line with our future growth target of deploying 10,00,000 MTPA capacity. JTL is constantly deploying efforts to enhance its capacity utilization and employ cost effective measures to maintain and increase profitability while achieving sustainable and robust revenue growth. We have conviction that our future sales could augment considerably fostering our profitability,” said the management of JTL Ind.

“Looking ahead, we remain committed to driving sustainable growth led by promising future of the construction and infrastructure industry. To capitalize on same we will continue to invest in our people, our technology, and our operations to ensure that we remain at the forefront of the industry and continue to meet the needs of our customers. At JTL, we continue to move forward on our mission to grow sustainably through continuous support of our stakeholders. I will like to conclude by thanking our whole team who have stood tall with us in every situation,” the management further added in a stock exchange filing.

Over the next two years, JTL seeks to raise the percentage of value-added products in its overall sales mix to over 50%. JTL intends to use DFT at its facilities, which will enable it to make varied hollow section sizes without changing rolls, boost productivity and capacity utilisation, and introduce more SKUs. JTL has received Rs. 3,840 Mn through preferential allotment, which would support the company’s projected capacity development and help it stay true to its objective. 

Through the issuance of up to 1,28,00,000 fully convertible warrants with a face value of Rs. 2 each during the quarter ended March 2023, JTL has raised a total of Rs. 3,840 Mn. This money will be used to increase its current manufacturing capacity. JTL started 36,000 MTPA of commercial production at its Punjabi facility in Mandi. The additional capacity is used to produce items with value added. The merger of JTL and Chetan Industries Limited was finalised during the quarter as well. The combined company will have increased domestic market penetration, process integration, and expanded manufacturing capacity of 100,000 MTPA.

Based on the management guidance JTL Ind said its revenue is expected to grow by 30-35% from FY23 to FY24 led by increasing sales volume, and greater contribution of value-added products in the sales mix and EBITDA for FY24 is expected to stay within similar lines as witnessed in FY23.