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 |