Q1 2027 JTL Industries Ltd Earnings Call Transcript
Key Points
- JTL Industries Ltd (BOM:534600) achieved its highest-ever quarterly revenue from operations of INR 722 crores and EBITDA of INR 59 crores in Q1 FY27.
- Sales volume grew 17.8% year-on-year to 118,513 metric tons, with operational EBITDA per ton improving to INR 4,954, supported by an enhanced product mix and operational efficiencies.
- The company received a significant INR 27 crores order for galvanized iron pipes for water infrastructure projects in Himachal Pradesh, strengthening its presence in the institutional segment.
- Management is confident of achieving the 30% volume growth guidance for FY27, with July already recording an all-time high month and a strong export order book of over INR 75 crores.
- The company is expanding into new markets, including exports to the US, Mexico, and Australia (via ACRS certification), and is targeting a 50-60% value-added product mix in the future.
- Working capital cycle improved to 75 days from 90 days, with a target of 35-40 days by FY28, driven by a shift towards dealer and export sales.
- JTL Defence is ramping up well, with monthly sales expected to reach 500 metric tons by Q4 FY27, and the company is diversifying into bullet shells and mint products.
- Exports were lower at 5% of total sales in Q1 FY27 due to global container shortages, causing a lag in dispatches despite a healthy order book.
- EBITDA per ton was impacted by INR 2.8 crores of additional non-cash depreciation from the March 2026 SHC valuation at JTL Defence, reducing PAT.
- The Mangao facility is currently operating at only 42% utilization, and overall company utilization is at 50%, indicating significant underutilization of capacity.
- JTL Defence's EBITDA margin was 12% in Q1, below the long-term target of 15%, as the new setup is still being tested and planned.
- The company has intentionally reduced its government business to less than 5% of sales, which could limit exposure to large infrastructure orders, though this is a strategic choice.
- The working capital cycle, though improved, remains elevated at 75 days, and the company is still dependent on dealer financing to further reduce it.
- The company's peak utilization target of 70% for the expanded 2 million ton capacity is not expected until FY29 or FY30, indicating a long ramp-up period.
Ladies and gentlemen, good day and welcome to the JTL Industries Limited Q1 FY27 conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Ms. Sneha Talreja from Nuvama. Thank you and over to you.
Thank you, Ananya.
Good afternoon, everyone. I warmly welcome everybody to JTL Industries' Kotawan FY27 Earnings Concord. On the management side, today we have with us Mr. Pranav Singla, Executive Director, Mr. Dhruv Singla, Executive Director, and Mr. Naveen Laroiya, CFO. Without taking any more time, I will now hand over the call to Mr. Naveen. Sir, over to you, sir, for your opening remarks.
Good afternoon, everybody. This is Naveen Daroia, CFO of JT Industries Limited. I thank you all for joining the earnings conference call of JT Industries Limited to discuss the performance for quarter one of financial year 2027.
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