Darshan Gala:
JTL industries concall notes
They are in this industry for over 3 decades and one of the fastest growing steel tube manufacturing companies in India
They manufacture ERW steel pipes, pre-galvanized and galvanized pipes and also hollow structure. The value added products in their portfolio are galvanized pipes and hollow structures. They have increased their number of distrubuters from 300-800 in Fy23
They have currently four plants
Two are in Punjab, One in Maharashtra and One in Chhattisgarh.
Maharashtra one has 2lakh tons capacity
They make black pipes and galvanized pipes over there
In Punjab they had one lakh capacity but last year they have added capacity along with making black pipes, they’ve added the capacity of galvanized pipes as well and total capacity contributed to 2 Lakh tons in their Punjab plant as well
One in chhattisgarh they have recently merged with chetan industries the plant has capacity of 1 lakh ton as well as and it has 50% of it’s lines dedicated towards producing galvanized products as well and it is backward integrated facility so they make their own coil in that facility which is used for self consumption the capacity is 1-1.6kakh tons for pipe and coils
And they’re equipped with In house cutting edge testing machinery to cater over 1000 SKUs through the product portfolio. So the highest selling product for them is
JTL Ultra: so these are high strength and low weight hollow section pipes manufactured in various shapes and sizes, having application in manufacturing and machinery equipment for agricultural purposes and building frames and construction purposes.
JTL Hulk: These are Large black pipes and galvanized pipes with a higher, bigger, and largely heaviee in weight. These are used for PV structures, warehousing and also used in airports as well. JTL Harvest is a product, which is also galvanized and black as well, which are used in borewells and rainwater harvesting
JTL Aqua: Is a product which is the galvanized pipes which has a comparatively smoother surface side which id mainly used for water supply, water distribution and irrigation and plumbing and Sanitization.
GALVA Coat: is a product which is a pre galvanized product which has application in furniture and fencing and also has a lot of use in places where it is slightly much more easier than others.
JTl Agnirodhi : is a product which is used for fire protection system such as firefighting. They have entered into a new segment as well in which they make sort of structures. So it is a product which is placed under the solar panel and main byproducts are all the EPC players such sd Tata, wada and so they have commenced the production of this product in 2917 as well.
Have 1000 SkUs right now snd export to 20 countries and 5 continents.
Our export mix is made up of 90% of galvanized pipes, which is vap product
Have also been recognized as a star export house by the GOI bcz they have been exporting since the day of their inception
Fy23 ebita per ton pwas 5300 per ton and they anticipate this to be 4500-5500 in fy24 due to the price fluctuations
Target is to grow volumes by 35%
Their capacity is 5.86lakhs current and they closed at 2.3lakh tonnes last year and will do 3.5-3.8lakh tonnes this year (Guidance)
Ebita margins 7-8%
35% rev growth
All guidance
Q4 was one off for them don’t keep this as a benchmark numbers they had an opportunity to sell more value added products so they did and got better margins
Currently they’re supplying to UK, EUROPE, AFRICA, AUSTRILIA but they haven’t opned their doors for the markets of US and CANADA. With the advent of the FFT technology, they would be able to cater to the higher structured dias as well using their SKUs in that particular market, where the duties structures for Indian steel will not be present in higher Dia pipes, tubes
Darshan Gala:
In us and canada the duties are high but thr products which they want to sell there are diameter pipes in the square and rectangular they do not attract those duties and they don’t have these pipes yet in their portfolio they’ll have it when the expansion is done
From 5.86lakh tonnes they want to take it to 7.5 lakh tonnes by the end of the year and by the end of the next year they want to take it to 10lakh tonnes
And in coming two or three years their capacity utilisation on this all will be 50-55%
The exports is down this qtr bcz the international market corrected more than the indian market so there were corrections in the international market which allowed china to throw better material to the area that they were serving and subsequently when the prices go down, the majority of buyers are stockist in those areas, so acquired material from us and stock it for further selling
Free trade agreement going on with uk if happens can be a trigger for them
90% of the exports are in VAP which is galvanized pipes
Debtor days is 33 aim to bring it down, to 25-24 by the, year end
The volume can be higher than the rev growth due to the volatile prices of steel
Want to increase the VAP part in the total revenue which will boost margins
As galvanized pipes gets 7500-8000 per tonn ebita
And currently this is 30% will go to 42% this year (rev from galvanized pipes)
Cash conversation cycle can go to 60days Or bellow from 70
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