JTL Industries shares hit new 52-week high after Q1 results, bonus announcement

Shares of JTL Industries surged to hit their new 52-week high on Monday after the company announced a strong year-on-year (YoY) performance in the quarter ended on June 30, 2023, along with an issue of bonus equity shares for the shareholders.

JTL Industries' net profit for the June 2023 quarter more than doubled to Rs 25.37 crore. The company had posted a net profit of Rs 12.07 crore in the same quarter previous year. However, its profit declined on a sequential basis (QoQ) from Rs 36.65 crore in Q4FY23.

The total revenue from the operations increased 38 per cent to Rs 504.80 crore in Q1 FY24, from Rs 368.04 crore in the same quarter previous. On a QoQ comparison, the revenue from operations improved slightly from Rs 471.10 crore in the March 2023 quarter.

The company board approved the issue of bonus shares in the ratio of 1:1, which means every shareholder of the company will get one share for each share held by them as on the record date. However, the announcement is subject to the approval of shareholders to be obtained in the ensuing AGM. The record date for the issue of bonus shares shall be intimated later.

Following the announcement, shares of JTL Industries gained about 2 per cent to Rs 388.95 on Monday, hitting its new 52-week highs, commanding a total market capitalization of more than Rs 3,250 crore. The scrip had settled at Rs 381.05 in the previous trading session Friday.

Shares of JTL Industries have gained about 110 per cent from its 52-week lows at Rs 185.70 in August 2022. The stock has zoomed about 2,675 per cent from its Covid-19 lows in May 2020, while the stock has more than tripled in the last two years.

JTL Industries, formerly known as JTL Infra, is the largest producer of electric resistance welded (ERW) steel pipes in India, with a capacity to produce more than 6 lakh metric tons per annum. The company also exports its products to various offshore markets.

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