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JTL Industries Ltd

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BSE Code : 534600 | NSE Symbol : JTLIND | ISIN : INE391J01024 | Industry : Steel |


Chairman's Speech

Our well-thought-out, finely crafted, and efficient product portfolio, has prepared us to capitalise on the upcoming demand.

Dear Shareholders,

I am pleased to present our Company?s Annual Report for 2021-22, and I hope this letter finds you safe and healthy.

2021-22 was no less than a year of unprecedented events. During the year, our country faced a series of uneven challenges, the year began with the challenges of Covid-19 pandemic, such as supply chain disruptions and inflationary pressures and the year ended with the Russia-Ukraine conflict. Both the events have largely impacted the economy in the demand and supply front. However, mass vaccination drives, Government monetary infusion schemes, regain in consumer spending and reopening of business activities led to improved economic sentiments.

Our social-community relationships have deepened over the years, as we remained committed to our responsibilities, despite the unprecedented times.

Our mission of capacity expansion to 1 Million MT demonstrates our potential to deliver better while improving our strategies.

People showed great optimism, which boosted the economic revival. Despite the challenges, the India?s GDP rose 8.7%, making India the fastest-growing major economy. At JTL Infra, we maintained our growth momentum despite the temporary hiccups. With the easing of restrictions, the operations resumed to the pre-pandemic levels. We delivered a strong performance across our business segments, led by a rebound in demand and a favourable macroeconomic environment. Our customers remain the focal point of our planning and execution, as we strive to achieve customer satisfaction while serving our business purpose of providing better and better. We have consistently worked on our preparedness against uncertainties by continually enhancing capabilities, thus building potential. To this end, we announced the merger of Chetan

Industries Limited and implemented backward integration to optimise business? operations and profitability. This will further support us in efficient inventory management, and procurement of raw materials, among other areas of business. During the year, our Company expanded a capacity of 1,00,000 MTPA at Mangaon and commenced operations also, sales volume of value-added products increased by 35%. Along with this, our Company was allocated 20,000 tons of GI pipe with the approx. order value of 300 Cr. under Jal Jeevan Mission (in the state of Jammu Kashmir). Our mission of capacity expansion to 1 Million MT demonstrates our potential to deliver better while improving our strategies. Thereby, tapping business opportunities such as following the metro network expansion, railway modernisation, Har Ghar Nal se Jal Yojana and solar, in the domestic and international real estate construction market. Backed by these endeavours and action plans, we strive to achieve consistent progress in strengthening our industry presence.

Our Performance in 2021-22

During the year, the pandemic-led challenges affected our business. Despite the challenges, our adaptability, flexibility and tenacity, along with our stakeholders? unwavering support, helped us achieve robust performance. Our revenue grew to 975.7 Cr. in 2021-22, compared to 435.76 Cr. in 2020-21, witnessing a growth of 124%. EBITDA increased to 76.08

Cr. in 2021-22, as compared to 37.40 Cr. in 2020-21, recording a growth of 103%. EBITDA margin dipped slightly by 55 bps to 7.55%, from 8.10%, owing to the hike in raw material prices. The profitafter tax was marked at 50.02 Cr. in 2021-22, compared to 20.06 Cr. in 2020-21, witnessing a growth of 150%. Earnings per share for 2021-22 was marked at 8.45. Furthermore, our sales volumes increased by 70.9% to 1,48,276 metric tons, from 86,771 metric tons. We also paid a dividend of 20% to our shareholders in 2021-22.

i ndustry Performance and Opportunities

The Iron and Steel sector is vital and contributes largely to the country?s GDP growth. The industry has a huge demand in the economy due to the high usage of steel products in various industries such as construction, automotive, and other manufacturing sectors. According to IBEF, crude steel production in India is estimated to reach 120 Million tons (a hike of 18%), driven by the rising demand from various sectors and industries. The Indian structural steel market is anticipated to grow 13 Million tons by 2023 and 22 Million tons by 2030, led by increased investment in highways, bridges, flyovers & public utilities. Furthermore, the Government expenditure of 19,000 Cr. on constructing 100 new airports and enhancing existing airport infrastructure in the country, especially in smaller cities, by 2024, caters us with new opportunities. The Global Electric

Resistance Welded (ERW) Pipes and Tubes market is anticipated to reach 85.3 Million tons by 2026. We are expanding our capacity to 1 Million MT to tap the emerging opportunities in a phased manner. Moreover, due to the new synergy with Chetan Industries, we are aiming to acquire a larger market share by expanding our manufacturing capabilities. Going ahead, the Jal Jeevan Mission (JJM) which aims to deliver safe drinking water to all 180 Million rural households by 2024 offers growth prospects as one of India?s largest infrastructure investments, with a planned investment of USD 50 Billion.

environment, Social and governance (eSg)

environment

Our Company is well-aware and committed to a cleaner, greener, healthier environment. We firmly believe in protecting our environment. In line with the same, we are optimising our energy source by installing solar rooftop panels and have also worked out an effective water recycling plan. Furthermore, we are focusing on increasing green covers through tree plantation programmes around our facilities.

Social

Since the beginning, our Company has emphasised giving back to society and nurturing social well-being. We have undertaken extensive initiatives within our CSR policy framework to develop society. Our social-community relationships have deepened over the years, as we remained committed to our responsibilities, despite the

Our Company?s investment in capacity expansion, along with our broadening domestic and global presence, gives us the confidence of being on the right path.

unprecedented times. Our foremost priority has always been our employees? and other stakeholders? health and safety. We continue to impart additional training and skill development to our employees and local workers for holistic growth. With all these activities, we also proactively contribute to global sustainable development efforts.

governance

Transparency and excellent corporate governance will always be at the centre of our business. We ensure morally right and fair business practices with the help of a strong and diverse Board of Directors, which reflects in our performance.

road Ahead

The market optimism that was witnessed near the closure of the previous fiscal year gives us hope that 2022-23 will see more resilient customer demand in the segments and markets where we have a presence. Our well-thought-out, finely crafted, and efficient product portfolio, has prepared us to capitalise on the upcoming demand. Our Company?s investment in capacity expansion, along with our broadening domestic and global presence, gives us the confidence of being on the right path. Our fundamental focus continues to be on tapping emerging opportunities in infrastructure, solar and to strengthen our product portfolio.

Note of Thanks

I would like to express my gratitude to the whole team and all our stakeholders, who have stood tall in every situation. I whole-heartedly thank all our customers for their continued trust in JTL Infra. I am also thankful to all my fellow Board members for their guidance and support in the challenging environment, which tested the organisation?s mettle during the year. On behalf of the Board and Management of JTL Infra, thank you all for being a part of our progressive journey.

Best Wishes,
Madan Mohan Singla
Managing Director