Iron & Steel Products company JTL Industries announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Revenue from Operations stood at Rs 4,795 million. EBITDA at Rs 377 million. PAT at Rs 264 million. Sales Volume at 1,03,193 MT, a rise of 26.3% YoY. H1FY25 Financial Highlights: Revenue from Operations reached Rs 9,949 million. EBITDA at Rs 815 million. PAT at Rs 571 million. Sales Volume at 1,99,593 MT, a rise of 25.5% YoY. Management Commentary: In Q2FY25, JTL Industries demonstrated resilience in its financial performance, achieving a total income of Rs 4,874 million. Although this reflects a slight decrease from Rs 5,051 million in Q2FY24, we remain optimistic about our strategic initiatives and ongoing operational enhancements that will drive future growth. Our EBITDA for the quarter was Rs 377 million, reflecting our commitment to cost management and product focus, resulting in an EBITDA margin of 7.7%. Notably, our H1FY25 EBITDA increased by 6.3% to Rs 815 million, showcasing our efforts to strengthen our financial foundation and operational efficiencies. We are pleased to report a PAT of Rs 264 million for Q2FY25, with a PAT margin of 5.4%. Our year-to-date PAT increased by 7.1% to Rs 571 million, highlighting our effective management strategies and our focus on sustainable growth. Notably, our sales volume reached 103,193 MT, marking a 26.32% growth compared to 81,686 MT in Q2FY24. Value-added products constituted 25% of our total sales mix, contributing significantly to overall revenue. We are pleased to report that the commercialization of Nabha Steels is progressing as planned, with the successful integration contributing 23,502 MT in H1FY25. Furthermore, we achieved record export volumes, reaching 18,219 MT in H1FY25, a remarkable growth of 104.74% compared to the previous year. This robust performance highlights our adaptability in challenging global market conditions. Additionally, our DFT lines are on track to enhance manufacturing capabilities, with machinery already delivered to our Mangaon plant. Installation is underway, and we expect trial runs by the end of November. This technology will allow us to produce large-diameter pipes, expanding our value-added product portfolio and driving higher margins. Our Mangaon facility has also commenced a new GI line, which is now supporting our export demands, raising exports to 10% of our total sales mix from 6-7% last year. Meanwhile, at our Raipur facility, we have doubled capacity from 1 lakh MTPA to 2 lakh MTPA and expanded the product size range from 4 inches to 8 inches. These upgrades across our plants collectively strengthen JTL’s manufacturing capabilities and position us well to meet growing demand. In line with our commitment to enhancing shareholder value, we have undertaken a share split to improve the liquidity of the company’s shares and make them more accessible to small and retail investors. Each equity share with a face value of Rs 2 has been split into two equity shares with a face value of Rs 1. Following this split, our authorized share capital has increased to Rs 55.00 crore, while paid-up share capital now stands at Rs 39.31 crore. The split is expected to be completed within two months, following BoD and EGM approvals received on October 3 and October 26, 2024, respectively. In July 2024, we raised Rs 300 crore through a Qualified Institutional Placement (QIP) at an issue price of Rs 211 per share, of which Rs 207 crore have been utilized to date. These funds have been primarily allocated towards capacity expansion, working capital requirements, and general corporate purposes. Additionally, in September 2024, we converted warrants issued in January 2023, generating an additional Rs 249.50 crore. The funds raised have been used for modernization, debt repayment, and working capital needs, with the remainder designated for general corporate purposes. Looking ahead, we remain optimistic about the continued demand for structural steel, bolstered by infrastructure investments and sustained project activity across key sectors. Our strategic positioning across both primary and secondary markets provides us with a unique advantage. In periods of strong demand, we experience steady growth across all product lines, allowing for balanced sales. When demand softens, our flexibility enables us to shift focus toward secondary products, ensuring consistent sales volume without margin pressure. This versatility allows us to effectively manage market fluctuations, providing resilience and a stable foundation for continued growth. Result PDF