JTL Industries Ltd Management Discussions

GLOBAL ECONOMY

The global economy is grappling with heightened volatility, triggered by persistent uncertainties in trade policies and escalating geopolitical tensions affecting the economy at large. The brief glimpse of optimism experienced in May and early June 2025, following a temporary tariff freeze and some progress on trade deals, promised to augment global economic recovery. However, this period of stability was short-lived. The Iran-Israel conflict in mid-June 2025 has reintroduced significant uncertainty. Additionally, the renewed turbulence in the Middle East is impacting investor confidence and provoking global market unrest once again. As per the International Monetary Funds April 2025 World Economic Outlook, global GDP grew by an estimated 3.3% in CY 2024. However, growth forecasts had a downward revision due to various disruptive factors. These include the intensification of trade disputes, military conflicts in West Asia and between Ukraine and Russia, and the introduction of broad-based tariffs, particularly by the United States. The IMF now projects global growth at 2.8% in CY 2025, 50 basis points lower than its January 2025 estimate, and at 3.0% in CY 2026, revised downward by 30 basis points. Advanced economies are expected to face subdued growth, with projections lowered from an estimated 1.8% in CY 2024 to 1.4% in CY 2025, before a slight improvement to 1.5% in CY 2026. The forecast for CY 2025 is 0.5 percentage point below the IMFs earlier projection. Weak consumer demand, tighter financial conditions, and inflation persistence continue to limit the recovery trajectory in these markets. Growth in emerging market and developing economies is also set to moderate. Following an estimated 4.3% in CY 2024, growth is forecasted at 3.7% in CY 2025 and 3.9% in CY 2026, marking a reduction of 0.5 and 0.4 percentage points respectively from previous estimates. Emerging and developing Asia, especially ASEAN countries, are expected to see growth slowdown to 4.5% in CY 2025 and 4.6% in CY 2026. This is in reaction to the adverse effects of the April 2025 tariffs and weakening external demand.

Global headline inflation is projected to decline to 4.3% in CY 2025 and further to 3.6% in CY 2026. Inflation in advanced economies is expected to converge to target levels earlier, reaching 2.2% in CY 2026. In comparison, inflation in emerging markets and developing economies is forecasted to ease to 4.6% over the same period. This disparity is a result of inconsistent responses to monetary policies and differing degrees of exposure to price shocks in the food and energy sectors across regions.

Outlook

The outlook for the global economy in the near term remains cautious, with multiple detrimental risks posing difficult questions on the path to recovery. In CY 2025, growth is expected to moderate further. This can be attributed to persistent geopolitical tensions, elevated trade policy uncertainty, and uneven monetary policy adjustments across regions.

The global energy markets will likely continue to be impacted and the investor sentiment is also in danger of being critical and adverse. Factors like the Iran-Israel conflict and ongoing instability in West Asia, along with the prolonged Russia-Ukraine war, are responsible for this turn of events. These disruptions, coupled with the recent wave of protectionist measures, particularly from advanced economies, have increased the risk of global economic fragmentation.

The pace and direction of global recovery will depend on a few critical factors: the hopeful resolution of geopolitical conflicts, recalibration of trade policies, and the degree of fiscal and monetary understanding among major economies. The easing of inflation offers some policy space, though uncertainty remains elevated. The medium- term stabilisation anticipates a more diversified, resilient, and regionally integrated global growth model, against an increasingly fragmented global order.

(Source: https://www.imf.org/en/Publications/WEO/ Issues/2025/04/22/world-economic-outlook-april-2025)

INDIAN ECONOMY

Indias economy continues to grow at a steady and reassuring pace, making it the fastest-growing major economy in the world. In FY 2024-25, real GDP growth was estimated at 6.5%, and the Reserve Bank of India (RBI) expects this momentum to continue into FY 2025-26. This performance is particularly noteworthy in the context of global economic uncertainty, and defines Indias role as a key engine of growth in the international landscape.

(Source: https://www.pib. gov. in/PressNoteDetails. aspx?NoteId=154840&ModuleId=3)

The bigger economic picture is improving, showcasing resilience, balanced growth, and increasing investor confidence. These promising signs are driven by strong domestic demand, easing inflation, robust capital markets, and rising exports. Key macroeconomic indicators, such as record growth in foreign exchange reserves, a controllable current account deficit, and increasing foreign investment, point to rising global trust in Indias long-term prospects. However, domestic demand remains the primary driver of growth. Rural consumption is recovering steadily, urban spending is gaining strength, and private sector investment is rising. An increasing number of businesses are operating close to full capacity and are expanding further to meet the growing demand. Simultaneously, public investment remains elevated, particularly in infrastructure, while stable borrowing conditions are encouraging forward-looking decisions by both firms and consumers.

Indias export performance continues to be promising, displaying a consistent performance in the services and high-value manufacturing. Over the past decade, the country has expanded its presence in global trade, driven by enhanced industrial capacity, increased competitiveness in services, and the emergence of strategic sectors such as defence production and electronics. Total exports reached an all-time high of USD 824.90 Billion in FY 2024-25, growing by 6.01% from USD 778.10 Billion in FY 2023-24. This marks a significant increase from USD 466.22 Billion in FY 2013-14, pointing to a decade of consistent export performance.

Inflation too showed signs of easing. Prices are stable once more, offering relief to both households and businesses. In May 2025, the year-on-year inflation rate based on the Consumer Price Index (CPI) stood at 2.82%, the lowest level since February 2019. This decline is attributed to stable food prices, supported by strong agricultural output, and low global commodity prices due to softening global demand. While recent tensions in the Middle East have added some uncertainty, imported inflation is expected to remain broadly contained. The RBI expects inflation to remain aligned with its medium-term target of 4%, and potentially even fall slightly below this level in the coming months. This downward trend suggests that the current price stability may not be temporary, but part of a broader trend of economic and monetary consolidation.

(Source: https://www.pib. gov. in/PressNoteDetails. aspx?NoteId=154840&ModuleId=3)

Outlook

Economic activity is expected to retain its momentum in FY 2025-26, driven by continued rise in private consumption and an upswing in fixed capital formation. While sustained rural economic developments are likely to support rural demand, the continuing growth in the services sector is expected to rejuvenate urban consumption.

Investments are projected to improve, aided by more capacity utilisation, robust balance sheets across financial and non-financial corporates, and the Governments focussed interests in boosting capital expenditure. Despite uncertainty around global trade policies, the recent conclusion of the Free Trade Agreement (FTA) with the United Kingdom and progress on similar agreements with other countries are expected to aid trade growth and improve merchandise exports. Taking these factors into consideration, real GDP growth for FY 2025-26 is projected at 6.5%. Assuming we get a normal monsoon, CPI inflation is expected to average 3.7% during the year, indicating that prices will continue to remain stable in the medium term. (Source:https://rbidocs. rbi. org. in/rdocs/Bulletin/ PDFs/0BULL250620253FFAAFCBB5BE4F39839D5ElB495A96AB. PDF)

GLOBAL STEEL DEMAND

In CY 2024, global steel demand contracted by approximately 1.0%, weighed down by a 3.5% decline in consumption in China, the worlds largest producer and consumer of steel. The downturn was largely attributable to Chinas real estate sector, which continued to underperform despite policy support and fiscal stimulus. Additionally, feeble construction activity and a manufacturing slowdown across developed markets further dragged down global demand. The United States, Japan and the European Union collectively recorded a decline of 2.0-3.0% due to persistent economic uncertainties, elevated interest rates, and escalating geopolitical tensions. The overall contraction in global steel demand was partially cushioned by the resolute performance of several emerging markets.

India stood out as the primary growth engine in the global context, with estimated consumption growth of 11.0% in CY 2024. The admirable position was hinged on increasing infrastructure spending, a buoyant automotive sector, and elevated levels of capital goods production. Among other

countries, Brazil registered a healthy demand growth of 5.6%, attributed to heightened construction and industrial activity, while other emerging economies collectively grew by 2.7%.

The future appears to hold great promise. With 55% of global steel used in building and infrastructure, steel hollow sections have become the backbone of modern construction - delivering unmatched strength-to-weight ratio, structural efficiency and design versatility. As demand grows for precision-engineered components, advanced manufacturing technologies are more vital than ever.

The global steel demand is expected to recover modestly in CY 2025, with projected growth in the range of 0.5% to 1.5%. This recovery is anticipated to be led by the tempering down of financial conditions, improved liquidity, and the eventual realisation of pent-up demand from housing, construction and consumer durables. Developed markets, such as the United States, the European Union, and South Korea, are likely to see a gradual revival in infrastructure and residential projects, which should moderate steel consumption. However, the trajectory of recovery remains vulnerable to several turbulent agents. Domestic supply constraints in certain regions, particularly those facing ageing infrastructure, high energy costs, or raw material shortages, could restrain output potential. Additionally, factors such as protectionist trade measures, carbon emission regulations, and the unpredictability of iron ore and coking coal prices are expected to adversely impact industry margins.

Overall, the global steel scenario is poised for cautious growth despite combative challenges. While the sector appears to be stabilising after a challenging year, the recovery in CY 2025 is likely to be gradual and uneven, shaped by macroeconomic developments, regional dynamics and dynamic shifts in policy frameworks.

(Source: https://www.crisil.com/content/crisilcom/en/home/

newsroom/press-releases/2025/01/domestic-steel-demand-to-

buck-global-slump-grow-8-9percent-in-2025.html)

INDIAN STEEL DEMAND

India has become the worlds third-largest economy, driven by a growing consumer class. Aligned with this rise in stature, the manufacturing, infrastructure, engineering, real estate, and transportation sectors are expected to be key drivers of increasing demand for steel.

The steel sector has a renewed zeal and status. It is increasingly being viewed as a foundational pillar of the nations growth trajectory. The sector is being recognised as vital not just to core industries, but also as a catalyst in Indias ambitions of becoming a USD 5 Trillion economy. Additional factors, such as the governments initiatives to expedite infrastructure development, including PM Gati Shakti and the National Master Plan, are expected to boost steel demand further. Increasingly, the country is relying on the growth of the steel industry, as evident in future planning across logistics, utilities, and industrial corridors. Moreover, growing domestic focus on shipbuilding, advanced railway systems, and pipeline expansion is driving demand across sectors for specialised steel grades.

Capacity expansion and technology upgrades are becoming central to long-term industry planning, especially with India targeting crude steel capacity of 3 Million Tonnes by CY 2030 and 500 Million Tonnes by CY 2047. The industry is also expected to benefit from the National Manufacturing Mission and Make in India programme, which are encouraging increased steel usage in the automotive, construction, and capital goods sectors.

(Source: https://www.pib. gov. in/PressReleasePage. aspx?PRID=2124170)

In CY 2024, domestic steel demand grew by approximately 11%, even as global consumption declined by nearly 1%. This growth was led by increased demand from the housing and infrastructure segments, which have become more steel-intensive, as well as from engineering and packaging sectors.

In CY 2025, CRISIL Analytics projects domestic steel demand to grow by 8-9%. This was aided by sustained Government capital expenditure in the sector, an upswing in the housing sector, and developments across engineering- led industrial segments. This will further cement Indias position as a promising hub for steel consumption growth in the world.

On the supply side, large integrated producers registered subdued growth. Crude steel production from the top seven mills remained flat in CY 2024 due to extended maintenance shutdowns. In contrast, medium and small producers ramped up production to meet growing demand, achieving 14% growth in crude steel output and 11.3% growth in finished steel output.

The demand-supply mismatch led to a sharp rise in imports. Finished steel imports rose by 24.5%, while exports declined by 6.4%, resulting in an excess availability of 3.2 Million Tonnes, which is nearly 2% of Indias total steel consumption. Notably, imports of Chinese hot-rolled coils (HRC) into India increased 26-28 times between CY 2022 and CY 2024, exerting downward pressure on domestic HRC prices.

In terms of pricing, domestic steel prices decreased during the year. HRC prices fell by 9%, while cold-rolled coil (CRC) prices declined by 7% in CY 2024. Although easing coking coal prices provided some cushion, CRISIL estimates that the potential imposition of a safeguard duty on HRC in CY 2025 could push steel prices up by 4-6%, particularly in the first half of the year.

Despite these pressures, the future of Indian steel demand remains tenaciously positive, with growth in CY 2025 expected to outpace that in most major global economies.

(Source: https://www.crisil.com/content/crisilcom/en/home/

newsroom/press-releases/2025/01/domestic-steel-demand-to-

buck-global-slump-grow-8-9percent-in-2025.html)

GLOBAL STEEL AND TUBES MARKET

The global steel pipes and tubes market is expected to be at USD 170.73 Billion in CY 2025, reaching USD 250.30 Billion by CY 2034. This translates to a compound annual growth rate (CAGR) of 4.3% over the forecasted period (CY 2025-2034), indicating stable, long-term demand across a range of industrial and infrastructure segments. (Source: https://www . marketresearchfuture. com/reports/steel- pipes-tubes-market-28336)

The market is defined by rapid urbanisation, growing population, and increasing investment in infrastructure across both developed and emerging economies. The rapid growth in housing and infrastructure has created a lucrative catchment area for the steel industry.

Steel pipes and tubes play a vital role in essential applications such as water supply, drainage, scaffolding, and building frameworks. Their structural integrity and cost efficiency make them indispensable for large-scale urban development and housing projects.

The transition towards renewable energy is also creating demand from newer territories. Solar and wind power installations are increasingly adopting galvanised steel

tubes and mounting systems due to their strength, corrosion resistance, and durability. The global emphasis on clean energy, duly supported by regulatory incentives and climate targets, is expected to augment this trend. Apart from traditional sectors like oil & gas, emerging industries such as road safety infrastructure, public utilities, and lightweight construction solutions are creating the need for engineered steel products. Tubular poles and road crash barriers, designed to withstand environmental stresses and

mechanical impact, are gaining traction as governments prioritise safety and smart city planning.

Additionally, the market is witnessing a shift towards prefabricated and coated solutions, including hot-dipped and pre-galvanised tubes, which offer enhanced lifecycle value and reduce maintenance costs. These products are particularly suited for solar structures, industrial sheds, and can sustain in high-moisture environments.

INDIA STEEL PIPES MARKET OVERVIEW

The Indian steel pipes market was estimated at 13.56 Million Tonnes in 2024 and is projected to grow to 27.76 Million Tonnes by 2033, translating to a compound annual growth rate (CAGR) of 7.65% during the forecast period (2025-2033). This steady expansion of the sector reflects the growing importance of steel pipes in supporting Indias infrastructure development and industrial growth.

(Source: https://www.imarcgroup.com/india-steel-pipes-market ) The growing demand is being driven by large-scale public programmes and sectoral tailwinds. Government-led initiatives such as the Jal Jeevan Mission, which aims to provide tap water to every rural household, are creating robust demand for high-quality steel pipes used in water supply systems. Simultaneously, the Affordable Housing programme is encouraging construction activity across urban and semi-urban India, thereby increasing the usage of structural pipes and tubes in building durable residential and community infrastructure.

The Indian warehousing sector, egged on by deepening e-commerce penetration and logistics expansion, is projected to witness significant growth. This sector, too, is responsible for elevating demand for steel structural components. Steel pipes and tubes play a crucial role in the construction of warehouses and industrial parks, particularly in the framing, scaffolding, and utility channel applications.

There is a clear shift towards seamless steel pipes across sectors, driven by their superior strength, corrosion resistance, and reliability in high-pressure environments. These pipes are increasingly being used in oil & gas transmission, power generation, and high-load infrastructure applications. Additionally, programmes like the Pradhan Mantri Urja Ganga continue to encourage pipeline infrastructure development, particularly for energy access in underserved regions.

Not to be left behind are the automotive and power sectors, which are emerging as important end-use industries. This

trend is especially pronounced in the use of seamless pipes in brake lines, fuel injection systems, boilers, and heat exchangers. Moreover, Indias expanding industrial landscape, including chemicals, heavy engineering, and process industries, is creating sustained demand for both seamless and welded pipe solutions.

DOWNSTREAM SECTORS AND OUTLOOK

Indias multi-sector infrastructure build-out, supported by large-scale public investments and national development programmes, is set to drive demand for structural steel tubes.

Warehousing

The Indian warehousing sector is projected to grow significantly, with demand expected to reach approximately 1.2 Billion square feet by 2027 across Grade A, B, and C facilities. Demand for structural steel components is being driven by the surge in e-commerce, organised retail, and third-party logistics.

Metro

Indias metro rail network is set to become the worlds second-largest within the next three to four years, overtaking the US and China. The Government has approved three new metro projects worth Rs. 31,000 Crores to support urban transport, augmenting the current coverage of 973 km across 23 cities. These projects present a lucrative expansion opportunity for Electric Resistance Welded (ERW) pipes, given the high density of stations where such pipes can be extensively utilised.

Airports

Indias civil aviation industry is poised for major growth, requiring additions of 4,000 additional aircrafts and 200 more airports over the next two decades. India currently has

157 operational airports, twice the number from a decade ago. To meet the rising demand for passenger and cargo traffic, the Government plans to add 50 more airports over the next five years. This will support greater consumption of structural steel tubes in terminals, hangars, and auxiliary infrastructure.

Jal Jeevan Mission

With an allocation of Rs. 70,163 Crores for FY 2024-25, the Jal Jeevan Mission has already equipped over 77% of rural households with water connections, up from 17% in 2019. The mission targets to reach over 180 Million rural households by 2024. This will drive significant demand for galvanised and coated pipes used in rural water distribution networks.

Affordable Housing

Indias housing market valuation is projected to increase from approximately USD 450 Billion currently to USD 6,000-8,000 Billion by 2050, driven by rapid urbanisation and increasing disposable incomes. Residential real estate is expected to sustain an annual growth rate of 10-12%, supported by Government schemes such as the Pradhan Mantri Awas Yojana (PMAY). These initiatives are expected to boost demand for structural and plumbing-grade steel pipes.

Indian Railways

The Amrit Bharat Station Scheme aims to modernise 1,300 railway stations across India with an investment of

approximately Rs. 24,470 Crores. This modernisation drive is expected to generate structural steel demand across station buildings, platforms, passenger amenities, and allied facilities.

POLICY SUPPORT

The Government of India has launched several schemes and initiatives to enhance the manufacturing, quality, competitiveness, and sustainability of the steel sector. These initiatives are designed to encourage increased domestic production, attract investments, promote R&D activities, and ensure quality control across the industry. Below is a summary of the key initiatives:

• National Steel Policy (NSP), 2017

The objective of this policy is to develop a technologically advanced and globally competitive steel industry in India. It is designed to achieve selfsufficiency in steel production by facilitating a stable policy environment and providing the necessary support. The targets for FY 2030-31 include crude steel capacity of 300 Million Tonnes (mt), crude steel demand/production of 255 mt, and per capita finished steel consumption of 158 kg. The policy focusses on demand projection, capacity expansion, raw material security, infrastructure augmentation, logistics development, energy efficiency, and the consolidation of Research & Development (R&D).

• Production Linked Incentive (PLI) Scheme for Specialty Steel

Launched on July 29, 2021, with a financial outlay of Rs. 6,322 Crores, this scheme aims to promote domestic production of specialty steel, attract capital investment, generate employment, and support technology upgradation. As of now, there are 44 active projects with committed investment of Rs. 27,100 Crores and downstream capacity addition of 23.8 mt. A second phase, PLI Scheme 1.1, was launched on January 6, 2025, for the period FY 2025-26 to FY 2029-30, with 42 Memoranda of Understanding (MoUs) signed with selected companies.

• Steel Quality Control Order (QCO)

The objective is to ban sub-standard steel products, whether domestic or imported, and ensure that only

quality steel conforming to Bureau of Indian Standards (BIS) is made available to end users. As of this date, 151 Indian Standards have been notified under the QCO, covering carbon steel, alloy steel, and stainless steel. The inclusion of 21 additional BIS standards is currently underway.

• Research & Development (R&D) Scheme

This scheme supports innovation to address technological challenges in the steel sector. Focus areas include green steel production, hydrogen-based steelmaking, carbon capture, utilisation and storage (CCUS), waste utilisation, and resource efficiency. The annual budget allocation is Rs. 5-10 Crores. Of the 35 projects completed, six have been adopted by the industry, 23 have resulted in lab-scale developments, and six were unsuccessful. Currently, 23 projects are underway. In FY 2024-25, 73 proposals were received and 13 were approved for funding.

• Steel Import Monitoring System (SIMS)

Introduced in 2019 and later upgraded to SIMS 2.0, this initiative monitors steel imports to gain insights for supporting data-driven policy decisions and promoting domestic manufacturing. SIMS 2.0 features API integration with multiple government portals, enhanced quality control, and real-time, authentic data entry. The system provides greater transparency and enables better risk management by identifying import surges and facilitating targeted policy responses.

(Source: https://steel.gov.in/sites/default/files/2025-05/

0verview%20of%20Steel%20sector%20March%2025%5B1%5D.pdf)

SWOT

Strengths

• Abundant Raw Materials: India possesses abundant iron ore reserves, ensuring a steady and cost-effective supply for steel manufacturing.

• Strong Domestic Demand: Rapid urbanisation, large- scale infrastructure initiatives such as Gati Shakti and PM Awas Yojana, along with expansion in the automotive and engineering sectors, are significantly boosting steel consumption.

• Government Support: Proactive government

policies, including the National Steel Policy and

Production-Linked Incentive (PLI) schemes, foster sectoral growth and modernisation.

• Demographic Dividend: With a large and youthful population, India benefits from a demographic dividend, fuelling urbanisation and the need for modern infrastructure, which in turn drives demand for structural steel tubes.

Weaknesses

• Low Per Capita Consumption: Despite growth, Indias per capita steel consumption remains below the global average, limiting potential domestic market expansion.

• High Production Costs: Elevated costs for energy and raw materials, as well as logistics inefficiencies, reduce profit margins for manufacturers.

• Supply Constraints: Capacity expansion has lagged behind demand growth, with large producers showing stagnant output. Conversely, smaller players are driving most of the recent increases in production.

• Price Volatility: Fluctuating steel prices and high input costs create uncertainty for producers and importers, and impact profitability.

Opportunities

• Infrastructure Investment: Considerable Government spending on infrastructure, housing, and urban development will continue to boost steel demand.

• Export Potential: With global demand for specialty and value-added steel rising, Indian producers have the opportunity to expand their international footprint.

• Green Steel and Innovation: Indias investments in hydrogen-based steelmaking and decarbonisation technologies may position it as a leader in sustainable steel production.

• Rising Industrialisation: Growth in sectors like automotive, engineering, and packaging offer new avenues for steel use.

Threats

• Rising Imports: Increased imports, particularly from countries with excess capacity, threaten domestic producers and exert downward pressure on prices.

• Global Price Declines: Over-production and price wars in the international market, especially due to Chinese exports, can erode margins for Indian companies.

• Regulatory and Environmental Challenges: Strict environmental regulations and land acquisition issues can increase compliance costs and delay planned expansions.

• Geopolitical Uncertainty: Trade tensions and

changing global economic conditions may disrupt export markets and input supply chains.

COMPANY OVERVIEW

JTL Industries Limited (referred to as JTL Industries, JTL, or the Company), is one of Indias fastest-growing and trusted manufacturers of structural steel tubes and pipes, with a legacy spanning over three decades. The Company has consistently evolved from a regional player into a national leader by expanding capacity, investing in value- added products (VAP), and strengthening its strategic footprint.

JTLs product portfolio includes ERW black and hollow steel tubes, hot-dip galvanised pipes, large diametre steel pipes, solar module mounting structures, and other high-quality construction-grade steel sections. The Company continues to enhance its value-added product portfolio, thus accruing better margins, particularly in galvanised pipes and solar structures.

The Company operates five manufacturing units strategically located across India, including plants in Punjab, Maharashtra (Mangaon), Raipur, and its newly incorporated subsidiary, JTL Engineering Limited in Punjab (acquired through a 66.96% stake in Nabha Steel and Metals). These facilities are equipped with advanced technology, including Direct Forming Technology (DFT) at the Maharashtra unit, enabling the efficient production of square and rectangular sections directly from HR coils. This process optimises yield, reduces waste, and plays a key role in expanding the SKU range.

JTLs competitive edge is sharpened by its presence across both primary and secondary steel markets. The Company also has a growing export footprint and a distribution network of over 800 dealers and retailers, factors which cement its position as a key player in the Indian steel industry.

The Company maintains a strong financial position with a zero-debt balance sheet, which provides it with the flexibility to fund ongoing and future expansion initiatives.

Its recent Qualified Institutional Placement (QIP) of Rs. 300

Crores and promoter-led preferential share allotments have

fortified its capital base.

Business Segment Review

1. Hot-Dipped Galvanised Steel Tubes and Pipes

This segment continued to contribute assuage demand from key end-use sectors such as agriculture, water infrastructure, construction, and general engineering, and therefore contributed significantly to the Companys product portfolio. The corrosion- resistant properties of hot-dipped galvanised (HDG) steel pipes make them ideal for rural water supply schemes, greenhouse structures, fencing, and scaffolding.

The Company remained focussed on expanding its customer base in domestic and export markets while improving process efficiencies and cost optimisation to enhance margins. In FY 2024-25, the segment benefitted from the Governments special attention to rural infrastructure, irrigation projects, and urban renewal initiatives. Elevated investments in Jal Jeevan Mission and Smart Cities Mission further supported volume growth.

2. Electric Resistance Welded (ERW) Pipes and Tubes

The global ERW tubes market is projected to grow from USD 781 Million in 2025 to USD 1,500 Million by 2033, registering a CAGR of 8.5%. The segment saw healthy demand in FY 2024-25, driven by robust infrastructure development, recovery in auto production, and increased activity in oil & gas transportation.

ERW pipes and tubes form the core of the Companys product offerings, catering to diverse applications across infrastructure, oil & gas, automotive, and general engineering sectors.

The Company leveraged its technological acumen and diverse product portfolio to consolidate its position in this highly competitive segment. Targeted investments in capacity expansion, quality improvement, and customer engagement supported sustained growth. Export performance stayed robust, driven by steady demand across key markets in Asia, Africa, and the Middle East.

3. Solar Module Mounting Structures

Solar module mounting structures (MMS) are critical components for solar PV installations, ensuring long-term stability and efficiency of solar plants. The Governments increasing emphasis on clean energy transition has made this sector an especially lucrative one. MMS continues to scale up in line with the goal of achieving a target of 500 GW of non-fossil fuel capacity by 2030.

In FY 2024-25, the Company capitalised on this trend by expanding its MMS solutions portfolio to accommodate both ground-mounted and rooftop solar projects. Its ability to offer customised, preengineered, and corrosion-resistant structures provided a distinct edge in winning large-scale orders. Additionally, by improving project turnaround time and strengthening partnerships with solar EPC players, the Company sustained its frontline position in the sector.

OPERATIONAL OVERVIEW Production Volume

In FY 2024-25, JTL Industries achieved its highest-ever annual sales volume of 3,87,555 metric tonnes, marking a growth of 13.4% over the 3,41,847 metric tonnes recorded in FY 2023-24. This performance reflects the Companys sustained growth momentum, supported by capacity expansion, backward integration, and a diversified market presence.

The contribution of Value-Added Products (VAP) also increased significantly. VAP accounted for 24% of the total sales mix during the year, driven by increased production of galvanised pipes and the commissioning of the Direct Forming Technology (DFT) mill at Mangaon.

A key contributor to the years performance was JTL Engineering Limited (formerly Nabha Steel), which added 41,865 metric tonnes to JTLs consolidated volumes. With this backward integration now fully operational, JTL has strengthened its grip over raw material sourcing and control of product margins.

This year-on-year volume growth, coupled with a broader product mix, enhanced SKU portfolio, and rising export contributions.

Capacity Expansion

In FY 2024-25, the Company significantly scaled its manufacturing capabilities and advanced its pledge to diversify its product portfolio in alignment with its longterm strategic roadmap. The Companys total installed capacity increased from 5,86,000 MTPA in FY 2023-24 to approximately 6,86,000 MTPA by Q2 FY 2024-25, and further reached ~10,00,000 MTPA by March 31, 2025. This expansion was driven by targeted investments in infrastructure and backward integration. Additional push came from the deployment of advanced manufacturing technologies.

The Raipur facility underwent a major expansion, doubling its capacity from 1,00,000 MTPA to 2,00,000 MTPA. This expansion enabled the production of larger pipes. It also facilitated the process of adding over 200 new SKUs with 50% of the plants capacity now focussed on Value-Added Products (VAPs). Overall, this capacity expansion gave the Company the required impetus to thrive in high-margin product segments.

Marking a significant milestone, the Company commissioned a new Direct Forming Technology (DFT) at the Mangaon plant in Maharashtra, in FY 2024-25. This advancement underscores the Companys commitment to precision engineering, operational efficiency and sustainable manufacturing practices. DFT delivers exceptional dimensional accuracy and uniform wall thickness, drastically reducing material waste while accelerating production timelines. Backed by advanced automation and digital monitoring, the process ensures strict quality control at every stage - producing steel tubes that are not only stronger and more consistent but also more cost-effective than traditional alternatives.

In FY 2024-25, the DFT facility expanded the plants capacity from 4,50,000 MTPA to 5,00,000 MTPA. The capacity expansion offered distinct advantages such as superior process efficiency, reduced material wastage, and an expanded range of SKUs. The DFT is entirely VAP- focussed and supports the Companys foray into premium structural tube markets, including exports. Full utilisation of this line is expected in FY 2025-26.

In addition, the Company integrated Nabha Steel and Metals, now renamed JTL Engineering Limited, as a subsidiary following the acquisition of a 66.96% stake. With a capacity of 5,000 MTPA, Nabha Steel commenced phased operations in June 2024 and contributed 41,865 metric tonnes to overall volumes in FY 2024-25.

With these strategic developments, the Company successfully achieved its near-term capacity target and is now on track to reach a long-term manufacturing capacity of 20,00,000 MTPA by FY 2026-27.

FINANCIAL OVERVIEW Revenue

Total income for FY 2024-25 stood at Rs. 1,93,875.93 Lacs, compared to Rs. 2,04,889.79 Lacs in FY 2023-24. This marginal decline was primarily due to an industry-wide correction in steel prices.

Profitability

EBITDA (including other income) for FY 2024-25 stood at Rs. 14,540.40 Lacs on a consolidated basis, translating to an EBITDA margin of 7.50%, compared to 7.85% in FY 2023-24. PAT for the year was Rs. 9,882.52 Lacs, as against Rs. 11,301.14 Lacs in the previous fiscal. The moderation in profitability was mainly on account of inventory losses, especially in the primary segment, arising from falling steel prices and elevated freight costs due to increased export volume.

Consolidated Balance Sheet

Total assets increased to Rs. 1,33,909.82 Lacs in FY 2024-25, building on the growth from Rs. 56,345.66 Lacs in FY 2022-23 to Rs. 84,349.15 Lacs in FY 2023-24. Correspondingly, total equity further strengthened to Rs. 1,21,864.53 Lacs in FY 2024-25, up from Rs. 77,475.81 Lacs in the previous year.

Cash Flows

Net cash flow for FY 2024-25 stood at Rs. 40,694.32 Lacs, indicating a negative cash movement during the year. This contrasts with the positive cash generation of Rs. 5,114.34 Lacs recorded in FY 2023-24.

Financial Results

Description	FY 2024-25 (Standalone)	FY 2024-25 (Consolidated)	FY 2023-24 (Standalone)	FY 2023-24 (Consolidated)
Revenue from Operations	1,91,290.69	1,91,631.11	2,04,074.81	2,04,074.81
Other Income	2,255.93	2,244.82	754.65	814.98
Total Revenue	1,93,546.62	1,93,875.93	2,04,829.46	2,04,889.79
Total Expenses	(1,80,387.99)	(1,80,714.73)	(1,89,868.37)	(1,89,868.98)
EBITDA	14,510.22	14,540.40	16,026.21	16,085.94
Finance Cost	(440.60)	(452.49)	(509.36)	(509.38)
Depreciation and Amortisation	(910.99)	(926.72)	(555.75)	(555.75)
Exceptional Items	-	-	-	-
Profit before Tax	13,158.63	13,161.20	14,961.09	15,020.81
Profit after Tax	9,880.74	9,882.52	11,256.45	11,301.14
Other Comprehensive Income	(1,024.04)	(1,024.04)	(608.65)	(608.65)
Total Comprehensive Income for the Year	8,856.70	8,858.49	10,647.80	10,692.50
Earnings per Share (Basic in Rs.)	2.60	2.60	3.30	3.32
Earnings per Share (Diluted in Rs.)	2.30	2.30	3.25	3.26

SIGNIFICANT CHANGE IN KEY FINANCIAL RATIOS

Key Ratios	FY 2024-25	FY 2023-24	% Change	Reasons, if Change >25%
Debtors Turnover Ratio (in days)	53.32	34.47	54.72	due to increase in trade receivables and decrease in turnover.
Inventory Turnover Ratio (in days)	41.41	26.91	53.90	due to increase in inventory and decrase in turnover.
Interest Coverage Ratio	24.89	24.28	2.52	N.A.
Current Ratio	9.47	10.18	(6.96)	N.A.
Debt-Equity Ratio	0.06	0.03	142.14	Due to increase in overall debt.
Operating Profit Margin (%)	7.50	7.85	(4.46)	N.A.
Net Profit Margin (%)	5.10	5.52	(7.59)	N.A.
EPS (Diluted) (in Rs.)	2.30	3.32	(30.72)	Due to decrease in profit after tax (PAT) and increase in share capital
Return on Net Worth (%)	8.11	14.59	(44.39)	Due to reduction of profit in the current year

RISK MANAGEMENT

JTL Industries continues to maintain a structured and proactive risk management framework to identify, assess, and mitigate key business and operational risks. The Risk Management Committee, in collaboration with senior leadership, periodically reviews emerging risk factors and ensures that appropriate mitigation strategies are in place. The framework is armed with regular external assessments, which provide actionable insights on the pathway to enhance internal controls and governance practices.

Risk Category	Potential Impact	Mitigation Strategy
Macroeconomic Risk	A prolonged downward trend in the economy could lead to lessened demand from key sectors, impacting revenues and business growth.	Diversifying customer base across sectors, investing in R&D for multifaceted applications, and facilitating international partnerships for wider market reach.
Competitive Risk	Rising competition within the steel and infrastructure sector may affect market share, impact margins, and challenge customer retention.	Continuous market monitoring, investment in product differentiation and quality, and strengthening customer relationships for affirming long-term loyalty.
Currency Volatility Risk	Exchange rate fluctuations could adversely affect earnings from imports and exports, impacting profitability.	Using hedging instruments like forward contracts, expanding geographic presence to distribute and even out risk exposure, and incorporating forex clauses in pricing agreements to lower liabilities.
Raw Material Cost Risk	Rising input costs may elevate production expenses and restrain margins.	Instituting long-term supply agreements, optimising inventory management, and evaluating cost-effective material alternatives to ensure price stability.
Commodity Price Risk	Unpredictable changes in commodity prices can affect both input costs and product pricing dynamics.	Deploying hedging mechanisms, implementing dynamic price review systems, and reinforcing internal controls within the risk management framework.
Interest Rate Risk	Rising interest rates may increase borrowing costs and adversely affect profitability.	Maintaining a low-debt profile and utilising prudent financing policies to minimise exposure to interest rate fluctuations.
Foreign Exchange Risk	Currency movement risk associated with international trade could lead to unpredictability in earnings.	Managing exposure by implementing a structured forex risk framework and leveraging hedging tools like forward covers.
Human Capital Risk	High attrition or shortage of skilled talent may impact productivity, innovation, and growth.	Improving recruitment strategies, benchmarking HR practices, and linking rewards with performance outcomes to drive retention and engagement.
Regulatory and Policy Risk	Sudden regulatory changes or adverse policy shifts could disrupt operations and strategic planning.	Active tracking of policy developments and maintaining agile compliance systems to respond promptly to regulatory changes.
Infrastructure and Logistics Risk	Inefficiencies or disruptions in freight and port infrastructure may delay supply chain operations and increase costs.	Proactive coordination with logistics partners, maintaining a cushion for storage facilities, and managing port congestion through advance planning.
Compliance Risk	Failure to comply with evolving legal and statutory requirements could result in penalties or reputational damage.	Regular monitoring of regulatory changes, periodic compliance audits, and system-driven compliance tracking.
Occupational Health & Safety Risk	Accidents or inadequate safety practices could lead to legal liabilities, reputational damage, or operational shutdowns.	Strengthening workplace safety protocols, conducting regular safety drills, and promoting a culture of Health, Safety, and Environment (HSE) awareness across all locations.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITY

JTL Industries recognises that sustainable growth extends beyond financial performance. In FY 2024-25, the Company reinforced its ESG agenda by deepening its community impact, strengthening environmental stewardship, and establishing stronger governance practices.

JTL Industries furthered its commitment to renewable energy integration into its regular processes and took assured steps to develop a modern rainwater harvesting

system. These efforts aim to reduce dependency on finite resources and foster an eco-conscious operational culture. On the social front, the Company continued to implement programmes to promote better education, improved healthcare, and holistic community development. The Company progresses with a particular focus on empowering rural youth by upskilling them for employment in sales and operations fields. Together, these progressive initiatives facilitate inclusive development while creating enduring societal value for all stakeholders.

The Company champions diversity and inclusion, promoting a respectful and empowering workplace that values and gives due recognition to every individual. As part of its social governance approach in FY 2024-25, the Company invested its energy in continuous and consistent engagement with stakeholders, prompt grievance redressal, and focussed on elevating customer satisfaction.

JTL Industries maintains a multi-step audit framework, involving statutory, internal, and secretarial audits conducted by independent firms, all aimed at establishing governance best practices across the organisation. Oversight from the Board and its independent directors ensures the propagation of astute checks and balances, to institute the highest standards of transparency and accountability.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a comprehensive internal control framework commensurate with the complexity and scale of its operations. These protocols are designed to protect assets, ensure accurate financial reporting, and maintain operational discipline.

During FY 2024-25, the framework was meticulously reviewed by the management and independent auditors to test its competence, efficiency, and responsiveness to emerging risks. Internal audits encompassed key processes, including policy compliance, authorisation mechanisms, and information reliability. Audit findings were presented to the Audit Committee for rigorous evaluation and to advise follow-up actions.

The internal control environment is defined by documented policies, standard operating procedures, and a structured risk mitigation framework. Extensive use of internal audits, management reviews, and IT-enabled monitoring ensures that the system remains agile and flexible. Financial transactions are duly authorised, recorded, and reported to enable reliable financial statement preparation and accountability.

The Audit Committee maintained an active relationship with Statutory and Internal Auditors, leveraging their expertise to scrutinise audit outcomes and monitor the implementation of corrective measures.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human capital remains a key strategic lever for JTL

Industries. The Company was enthusiastic about realigning its HR practices in line with updated business goals, enhancing employee engagement to reduce attrition, and strengthen workforce capabilities to heighten productivity in FY 2024-25.

The Companys HR policy framework underwent updates to better reflect organisational goals and evolving employee needs. This included strengthening performance management systems, improving recruitment and onboarding processes, and expanding training coverage.

As of March 31,2025, the Company employed 738 persons. The work environment remained supportive, characterised by harmonious industrial relations and uninterrupted operations. Annual appraisals and merit-based increments were implemented in accordance with internal policies. Continuous learning was encouraged as a core practice, with several functional and leadership enhancement initiatives conducted during the year. These programmes aimed to improve productivity, foster innovation, and prepare employees for future responsibilities.

A performance-driven culture was institutionalised, and was supported by a transparent evaluation system, skill- based development opportunities, and initiatives promoting career growth. Discipline, integrity, and alignment with corporate values remained non-negotiable across all levels.

CAUTIONARY STATEMENT

Statements in this report on Management Discussion and Analysis relating to the Companys objectives, projections, estimates, expectations, or predictions may be forwardlooking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand and supply conditions, selling prices, raw material costs and availability, changes in Government regulations and tax structure, general economic developments in India and abroad, and factors such as litigation, industrial relations, and other unforeseen events. The Company assumes no responsibility in respect of forward-looking statements made herein that may undergo changes in the future based on subsequent developments, information, or events.