JTL Industries Limited (534600) Earnings Call Transcript
August 5, 2026
Earnings Call Speaker Segments
Thank you, and over to you. Thank you, Anna. Good afternoon, everyone. I warmly welcome JTL Industries Quarter 1 FY '21 Earnings Con Call. On the management side, Today, we have with us Mr. Pranav Singla, executive Director, Mr. Rob Inga, Executive Director; and Mr. Navin Laroia, CFO. Without taking any more time, I will now hand over the call to Mr. Navin, sir. Over to you, sir, for your opening remarks.
Good afternoon, everybody. This is Navin Laroia, CFO of TG Industries Limited. I thank you all for joining the earnings conference call of Sajid Industries Limited to discuss the performance for quarter 1 of financial year '27. We appreciate your continued support and interest in our company. The company achieved its highest several quarterly revenue from operations and EBITDA in Q1 FY Revenue from operations reached INR 722 crores, while EBITDA was INR 59 crores with a margin of 8.1%. Profit after tax for the quarter was INR 35 crores with a margin of 4.9%. PAT of INR 35 crores is after. And of additional noncash depreciation arising from the March 2026 assets revaluation at JPL Defense Limited, erstwhile RCA Industries & Technologies Limited. The company has reported a sales volume of 118513 metric tons during Q1 FY '27, reflecting 17.8% year-on-year. Operational revenue per tonne increased to INR 682 while operational EBITDA by ton without other income improved to INR 495 per metric ton, supported by an improved product mix and continued focus on operational efficiencies. During the quarter, the company continued to strengthen its presence across key end user industries to its value-added product portfolio. FT structure seal continue to gain acceptance across the dealer network and industrial applications, supported by improved production and capacity utilization at the Manga facility. The quarter also marked progress in strengthening the company's presence in the Water Infrastructure segment with the receipt of INR 27 crores order for the supply of galvanized iron pipes for water supply and distribution projects in machines. This order reinforces the company's capability to cater to institutional infrastructure requirements and further strengthens its position in the domestic market. The company continues to focus on improving operational efficiencies, expanding the contribution from value-added products and strengthening its presence across domestic and export markets. Supported by its integrated manufacturing platform and diversified portfolio, JTL Industries remains focused on creating long-term ruling disciplined execution and sustained operational performance. With this, I would now request the moderator to open the floor for questions and answers.
[Operator Instructions] The first question is from the line of Lokesh Kashikar from Smiths Institutional Equities.
Congratulations sir, on the very good set of numbers during the quarter. A couple of things. A couple of questions from my side. starting with EBITDA per tonne in this quarter, the EBITDA per tonne was around 500. And it was elevated and better than guidance. So just wanted to confirm, is there any one-off like inventory carrying gains? Or it is just a function of entered mix? That's the first question from my side.
Akash, thanks for the question. So if you consolidate the data per time. So this includes the consolidation of JV defense as well. So JTL Defense contributed close to 200 additions in the data pardon barring that, the data baton was at around 50% level, which was, again, a group as well. And as we mentioned that the sous target for us is to maintain the det -- so we are well impact to get the guidance. And the only competition added of was defense.
And sir, what would be the guidance it would be closer to -- on the consolidated level, it would be around INR 4,000 crore to INR 5,000 crore or how it would be?
Given the normalized situation of HFC right now, so we have been confident that the 5 beta per tonne in JTL steel even is something is that you can see the coming quarters as well. This is a trajectory that we foresee you heard as well. So we are confident that console INR 5000 something that we'll definitely see in the coming quarter.
Sir, secondly, what was the EBIT what was the value added went during the quarter? And what was the export component to the overall mix?
So the value-added composition was again close 35%, what we've been doing in the past as well. There was slightly bit than the exports at this time. That was majorly because of the container shortage happening all over -- so exports were at 5% this quarter. Going ahead, we have a healthy order book of exports actually 1 of the biggest order books of exports right now and but because the whole situation, there has been some lag in dispatches. But going ahead, we can.
Sure, sure. And sir, last one, just checking on the volume growth guidance. Earlier, you have guided for around 30% volume growth for FY; 27.
So that definitely doesn't mean in that. So if you -- I ask the my H2 is usually stronger than -- given that I do similar kind of volumes actually higher kind of volumes than what you did done in Q1. And if you over 20% growth over that -- so we will anyway cross the 30% guidance as well, but still 30% something that we'll definitely achieve. But our aim will be to deliver more than that as well.
The next question is from the line of Souvik from Nuvama.
Just wanted to know a little bit about the Mandan facility. And are we on track to for completion by -- and how much has been the utilization in the first quarter for the same facility. -- habit.
So the utilization of the Mango facility is about 42% right now. Going ahead, we are very confident to achieve the desired capacity of addition of close to 1 million tonnes by end of H1. And right now, overall level, like the company level, we are operating at 50% utilization levels. And by year-end, this level should be 65%. So as I mentioned that you should see a better H2. So this will be because majorly led by the utilization increases at Banco -- over there, we are doing close to 700,000 tons of DFT right now, which has a huge piece to grow, in fact, double from here as well. So once we do that, once we start to achieve that are utilizing levels from the plant itself in tax 60%, and the utilization will increase and so will the margin coming from the Mangini.
Can I just also wanted to touch upon the export but I think you mentioned that we have the highest ever export other books currently. Could you speak more in terms of what has happened in exports and would give us some more flavor on that?
So on the export side, due to the issues in or and the lag in availability of containers and transportation there. The first quarter was it a bit in that aspect. But having said that, in the recent time, we've been awarded different affiliations like CRS, and we've also started some exports to the Americas. So we've had good interest from there. And currently, we have a good order book for exports to take back. If the situation of logistics improve, we cover up this lag in first quarter and the second one.
And to quantify, will be the earlier mentioned target of 10% of total sales exports is something that we'll target for the coming quarters as well. The some lag in 5% will be accounted for in the coming quarters. Could you also give me the CapEx outflow that you've planned for FY 2017 '28?
So for this year, the CapEx outflow is close to INR 100 crores and this will be completing our entire CapEx left over. After that, there will be only lettings CapEx of INR 30 crores, INR 40 crores every year at max happening. But the remaining 100 crores of CapEx will complete our entire journey to 2 million tonnes.
The next question is from the line of Jatin from Nuvama. [Operator Instructions ] Jatin from Nuvama.
I've got 2 questions. First on Defense. So coming to guidance, are you maintaining our guidance at INR 200 crores of top line and 6,000 tonnes. And I believe EBITDA margin guidance was about 10% to 15% versus that?
Sorry, can you please read the number that you said, please?
Ladies and gentlemen, we have lost the line of the last participant. [Operator Instructions] The next question is from the line of Nishita Sankesh from Saffire Capital.
So just so currently, our capacity is 1 million tonnes. And you mentioned that like after our total CapEx of INR 100 crores is done we reach the capacity of 2 million tonnes. So how fast can we ramp up this capacity? And is it going to come in phases?
Yes. So the capacity is going to come in fees, the ramp. So if you talk about the full million tons out of this 7 lakh tons or close to time shall be commissioned by H1 end, and the remaining 3 lakh tonnes will be commissioned by next year around this time, and that will be of APIs that we've already announced before. And if you talk about the ramp-up, the ramp-up will take some time, although you will see some contribution of the new capacity happening every quarter. But the full utilization levels will be met by FY '29. And on that whole capacity, we should achieve plus the 50% to 55% utilized level in FY '29. So if you talk about.
Say in FY '19, we can reach 60% utilization level?
50% to 60% utilization levels. It's too early for us to comment right now because it depends how -- in which quarter the full CapEx be completed for the remaining last 3 lakh times. So that will be a key thing to note and tell that when exactly can we achieve the -- so the overcapacity like we can assume will be commissioned in FY '28 and by second initiation of 50%, 60%. 6%. Yes, to 60% in FY '20.
Right. Understood. And like what we don't see at peak utilization, I'm assuming the base utilization to be 75%, what is the total revenue the position that we can achieve is close to 70%.
So that is something that we'll target in FY '29 itself as well, as I mentioned. But it is very subjective how far the CapEx is completed over the last leg. So 70% is something that will reach at peak. So that can happen as soon as FY '29 as well and that can happen as a...
Okay. And is there a new potential utilization will be?
Sorry?
The revenue potential at the utilization?
So right now, the realization per tonne is close to INR 60 as we are going into value products going ahead, we can expect the edition to increase from INR 6,000 to INR 65, INR 6,000 going ahead. So around -- on the peak levels of 70%, if you do so about an million times into INR 60,000 or something that could be the peak revenue -- on the current CapEx cycle.
[Operator Instructions] Jatin from Nuvama.
Continuing on the question earlier. My question was on rates. So the guidance, I believe, we had was a top line of INR 200 crores and volume of 6,000 entries and EBITDA margins at 10% to 15%, are we maintaining that -- so this guidance is not for the volume guidance is not for this year, although the top line is something that we're still trying to achieve.
We will be touching those cost on that. Right now, given the run rate of Q1, we were at about 100 metric tons a month, and we've already reached 100 or 120 metric tonnes a month in this quarter. In this first month, we did close to 10 metric tons of sales in first month of this quarter. So we are expecting by every quarter, we'll be touching 500 tonnes closer tons of sales in defense by that time. And the guidance on the margin over there. So Q4 was an exceptional quarter in that because of led by inventory gains in which we did 20% EBITDA margins. In Q1, we had about 12% EBITDA margin in defense. Going ahead, it's too soon again to maintain the exact 15% margin going ahead, but the long-term margin is 15%. But for now, it can be weaving around because it's a new setup for us, a new industry for us. So a lot of things are being tested over there and a lot of things are being planned definitely as well. So -- but 10% to 15% is something that you will achieve in the long-term proposition.
Second question is coming to growth. I mean, will you be able to quantify, I mean, how much of the growth volume would has come up from the new capacity that are ramping up? And how much has it come from the market share gains that you've been getting from filling channel inventory?
If you can just give us a breakup -- so as I mentioned that earlier, we were doing close to 10,000 tonnes of DST a quarter. From that, we have almost doubled ourselves and we closed 20,000 to 21,000 tonnes of DFT a quarter right now. So there is new capacity which is in the role as well, and also we are gaining share in the segment as well because we are getting panel in a lot of leases in Maharashta itself. And in the export market as well, there is a good demand for duty sections. We have opened our what is to U.S. as well in Mexico as well in Canada as well. So all these cases, DST is being exported as well. So there's a bit of market share gaining happening, and there's mix of hoping as well.
[Operator Instructions] The next question is from the line of Dewang from Abacus Asset Manager Private Limited.
My question is on the demand side. How is the demand panning out from various sectors at the moment -- how do we see it going forward?
Maybe -- you said demand timing out from -- I could not hear the last part, sorry.
How is the demand panning out in terms of various sectors, our user industries?
Yes. So see, there is a good demand Firstly, there is a difference between the primary and the secondary product. So there is a good demand in the secondary product at the moment, it's say, record-breaking mode secondary product. So that is 1 aspect of it because the difference is there. And the primary product wherein we have gained a market share in the DFT, we have gained the market share. in specialized products from low it replacement of senate making some thicknesses as a replacement of seamless pipes. -- these areas, we are actively gaining ground on with direct supply to OEMs also and also then the dealer network research. So these products are something that everybody is doing a -- so these are the markets that we are getting after share -- and we give more good reforms in this area. With time that how we are able to deploy into replacement of the interpipes in hydraulic banks and in ooops, wherein the price still has done, but also they need higher grain is this perform better. So we'll be able to penetrate in that right now. [indiscernible] value-added -- so but we can go in 1 million a couple of years down the -- so comes when we are getting our other is also running the 1 million tonnes on value operating product. So our target is 50% to 60% of our products will be the target.
How is July panning out into volumes? Any color on that?
July again in our as well will be able to remission. So looking then and mentioned that there is a good happen in primary and secondary right now as rent. So because of the whole situation, the main and that situation, we are able to be you probably in a organic -- and lastly, Mr. Kapner, can you please for that expense 27 figure will be closer to and -- and in the next actual year, the CapEx will be a CapEx of INR 30 crores to INR 40 crores at a this is the industries can be some cases happening in the Pendolino that's extra or that.
[Operator Instructions] The next question is from the line of Wealth Management.
[indiscernible] How is the government at this point are we getting any orders from that is big on the we need to up our play from that particular thing happening at the first one.
So we -- there have been a little in design CapEx, not the situation what we saw to take back, but now they have an improvement and we've got some orders as well. But we as a company have made a point of having more suedealer network and exports that our target audience right now. The government is very user demand. So we are not lying on government sector anymore earlier or delay plant we had dedicated the plant to government early years. But now we sat monomer we are in the dealer market as well. And it's just that there are good government orders of coming in favorable to us we open up to the debt that we saw as well like last year's government contribution was 5%, which was over what we did this earlier. So we been trying to intentionally cut off. The second reason is pricing the products at which which has been a share is actually going through the department like MMRDA and authorities. These are the places where the production is going 2 dealers earlier. In the first quarter, when we started ASP, the product was being moved to all these cases 2-wheeler, but now has been ourselves. So it is a direct tie that is happening over there.
And lastly, what I wanted to understand was the spread in quarter 1 and what is it now? And how is it benefiting at at this point?
Branding security has remained the a range bound of about 1 in the last quarter 7 to 8 being the lowest end of setting a this kind of sense, you talked on year round for when intend in the and our patent we were able to capitalize on the demand in these quarters in this one. So right now, also the dispenser demanding strategic -- so just the timing remain we shall see the demand is similar.
The next question is from the line of Sandhya.
So I had a couple of questions. So can we just provide a bit on the port and the geography of seeing this strong distraction after this thing is the institution -- so you were saying satiation figure -- and the action may help us get a share in late -- and more than that, we have been open as to U.S. to Mexico, U.S. and Mexico.
That has been a market where we've been flying heavily as well in the last quarter.
Just how much order book and what is a the execution?
So if you talk about the export order book, we have plus for the INR 75 crores order book of exposed right now. And if you talk about for the quarter order will be something that you believe moves around and we hope -- so that's the kind of order we still have right now. So that's about the book. and it is in effect -- so in last term of what something always it's a moving market in which Mandeep market. So when we say because we are the the contribute 60% of our entire sales the order book excites -- so to sell 20 years on a new basis. That's how we -- but if quantify back container period on the in the because I think we are in the element between and adapters, how to business. How come adjusting the portering capital on cash and on a -- the has been improving the company. So a little bit about 90 which had come down this quarter. and it's about right at this quarter. And going ahead, we are opting for dealer financing is where we will further bring our working capital. So what we end -- so the improvement in the working capital cycle, in in the coming quarters. As I mentioned again, working capital cycle for because of a couple of days earlier payments in over the for a long run. But now as we've changed that more time focus more towards export network where in delay in settlement are only about 7 to 8 days. So the working capital side will improve the order coming years. So we are targeting a working capital cycle of 40 days.
[Operator Instructions] The next question is from the line of Saffire Capital. Please go ahead.
Thank you for the follow-up question. I just you mentioned that the exit called close to 5% of sales to defend -- so does that mean that like you've seen the reach to the 500 then?
Yes, that's right. That's it. So by the -- that's correct.
We should -- and so the sale is the quarter leasing number on an annual basis?
No, no, the 500 tonnes would be something that we'll be doing in a month in due to sense. So right now, we are going close to 10 metric tons as I mentioned, which was the highest for us in this quarter this in the fourth one. So in fourth quarter, we are evident as we will achieve 10 metric tons per month of sales of and products.
Next question is from the line of Alexa Capital Management. Please go ahead. it's the comment actually in strategy on events. And for. So the CapEx of this is on the CapEx for now. We are just entering into coin segment and bullet segment. So for that, we have a few machines which require renovation and a few machines which need to order new as well because the machines required in the main factory coin segment is something that needs to be updated quite frequently as well. And the same goes. So the CapEx outflow for that kind of addition in this year would be not more than INR 15 crores and a similar kind of CapEx would be expected in that company in the next year as well. So this will not change the capacity of the company. This will change the product placement of the company. For example, like for now, the capacity over there is close to 12,000 tonnes of 000 tonnes that we can do per month. So going ahead and when I talk about 1,000 tonnes a month, so this is the hot print capacity. So going ahead, this product, which we are placing to automobile segment right now and dealer segment right now, which is the copper foils and sheet, these will be converted to bullet shell and segment and also towards mill factories, which will further provide value addition to the company and bump up with the margins. So for that, INR 15 crores of CapEx is something that you can expect this year and similar amount in next year as well.
And just to have a little broad, let's say, 2, 3 years down the line, defense, we would predominantly be a shell company. Any revenue targets or anything in the mind? Like just like broad-based, any idea what it could be, how large it could be? What are we thinking?
So it's going to be a mix of everything. I wouldn't say that it's entirely going to be defense company, only bullet shell segment because the bullet shell segment, if you talk about the itself, it's a program product. So it's not a thing that even if volumes as well, I can see quantity what the entire capacity of the plant is. So around 20%, 30%, which is close to 200 tonnes is something that we can focus will go towards Min factory, which is towards segments and 30% to 35%, which is close to 350 tonnes of material will go towards bullet shells and casings. And the remaining product, which is close to 30 tonnes will be going towards the current dealer and automobile market. So for example, we have Minda Corp who is one of the biggest procure for copper foils right now. So there are a lot of similar automobile companies we are targeting in which we are getting healthy margins as well. So say that 30% will be automobile and dealer network, 35% will be defense and the remaining will be factories.
As there are no questions, the last question has been completed. I now hand the conference over to the management for closing remarks. Over to you, sir.
Thank you, everyone, for joining our earnings call. I hope we were able to give you the answers to your queries. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations team. Thank you.
On behalf of Nuvama and JTI Industries, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
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