Pranav Singla, Executive Director, JTL Industries Limited

19 Jun 2023 , 07:43 AM

Can you provide an overview of your company’s operations and its position in the ERW steel pipes industry? 

JTL Industries, since its inception in 1991 has grown from a manufacturer of ERW Black Pipes to a producer of value-added products such as galvanized steel pipes, solar module mounting structures, and large-diameter steel tubes & pipes. With 4 state-of-the-art facilities in Punjab, Maharashtra and Chhattisgarh, JTL Industries has a total manufacturing capacity of 5,86,000 MTPA, serving PAN India and over 20 countries across five continents. It has a vast product range of 1000+ SKUs, a dedicated workforce of 600+ skilled employees, and a network of over 800 dealers and distributors.

What is the long-term vision and strategic direction for JTL Industries Limited? How do you plan to achieve those goals? 

JTL Industries continues to move forward on our mission to grow sustainably and enhance shareholder value through the continuous support of our stakeholders.  For the medium-term vision, we plan to expand our capacity to 1 million tonnes by FY25 year-end. The long-term vision lies at achieving 2 million tonnes by FY27.​ Alongside this, we are also adding value-addition machinery and equipment to increase our value-added product mix and achieve higher margins. We are aiming to increase its contribution of value-added products to over 50% of the total sales mix over the next 2 years. We plan to deploy DFT in our plants which will facilitate the production of various sizes of hollow sections without roll change, increasing efficiency and capacity utilization and adding additional SKUs.​

Can you discuss any recent differential strategies that the company has implemented?​ ​

The company is one-step backward integrated at the Raipur plant where we also product the raw material that is used in manufacturing our final finished product. This step has helped us achieve tremendous cost synergies and optimize on extra operational costs. Our product strategy is to develop a coherent product mix which is leaning towards more value-added products thereby overall generating industry-leading margins​​​.

What is your perspective on the future of the ERW steel pipes industry, and what steps is your company taking to adapt to emerging trends and challenges? 

The overall ERW Pipe segment market size is 11 Million Tonnes, it is anticipated to grow at 15% annually. To cater to the evolving and growing demand of the industry, the company is adding more SKUs and products to be a one-stop solution for our customer needs. This will be achieved by adding 2 Lakh Tonnes of DFT technology which is used in heavy structural pipes and produce sizes up to 500×500   JTL serves various industry sectors such as Construction & Building Materials, Core Infrastructure, Energy and Engineering, Heavy Vehicles, Agriculture, Water & Gas distribution, and Solar Projects.

 

Can you share any significant achievements or milestones that JTL Industries has accomplished in recent years and how they have contributed to your overall success in the ERW steel pipes market?  ​

 

The company is functioning on a business model that it is able to achieve industry-leading margins. The company started with one plant in Derabassi, Punjab and has achieved a milestone of four plants across the country by FY23. The company has been recognized as a Star Export House by the Government of India, and is ISO 9001:2015 certified, demonstrating its adherence to strict manufacturing and commercial procedures.  We export our products to over 20 countries across five continents. Our export mix consists of value-added products and commercial-grade products with the former contributing to ~90% of its export sales volume which assists them to earn high revenue and margins. We have also consistently been a preferred government partner for its tenders and continue to have B2B and B2G orders in our order book.

 Could you please provide a summary of your company’s financial performance?

 

In terms of financial performance, Revenue from operations stood at Rs. 4,726.25 Mn for Q4 FY23 against Rs. 4,163.86 Mn for Q4 FY22 and Rs. 15,499.19 Mn for FY23 as compared to Rs. 13,553.17 Mn in FY22 growing by 13.51% and 14.53% YoY respectively. This robust growth was led by record sales volume in domestic and international market, and increasing manufacturing capacity. Our EBITDA stood at Rs. 527.90 Mn for Q4 FY23 v/s Rs. 276.57 Mn for Q4 FY22 and Rs. 1,293.65 Mn in FY23 against Rs. 894.19 Mn in FY22 surging by 90.87% and 44.67% YoY respectively owing to increased efficiencies due to increasing scale of operations. EBITDA Margins were recorded at 11.17% in Q4 FY23 as compared to 6.64% in Q4 FY22 and 8.35% in FY23 as compared to 6.60% in FY22 soaring by 453 bps and 175 bps respectively. This robust growth was led by increasing share of exports and value-added products in our overall revenue pie. PAT stood at Rs. 366.51 Mn in Q4 FY23 v/s Rs. 189.48 Mn in Q4 FY22 and Rs. 901.28 Mn in FY23 as compared to Rs. 610.61 Mn in FY22 showcasing robust growth of 93.43% and 47.60% YoY respectively. PAT margins were stood at 7.75% in Q4 FY23 and 5.82% in FY23.