Jyoti CNC Q1: Margins Soar By 1770 BPS | NDTV Profit
Transcript
00:00Today's company in focus is Jyothi CNC Automation on the back of their numbers.
00:04The company posted a revenue growth of 74% at Rs. 362 crore while the EBITDA soared from
00:09Rs. 17 crore to Rs. 94 crore and the margin stood at 25.9% as compared to 8.2% last year.
00:16Net profit value comes at about Rs. 51 crore as compared to a loss of Rs. 14 crore.
00:21But to discuss more on the results and the outlook going forward for the year, we are
00:25joined in by PG Jadeja, the CMD of Jyothi CNC Automation.
00:30Hello and welcome to the show.
00:31How are you?
00:32Good afternoon.
00:33Hi, good afternoon.
00:34So my first question to you is on the results.
00:37Now we have been seeing a consistent tick in your margins, 26% currently as compared
00:43to 22% in FY24 and 8% in FY23.
00:47I want to understand from you, where is this margin growth coming in from?
00:52Is it the revenue mix?
00:53Is it the operational efficiencies or higher export mix?
00:56Can you expand more on that?
00:58Yeah, it's a combine of all these three basically.
01:01So our exports are also has been changed with the aerospace and defense.
01:09It's more versions are like that.
01:11And third is operation efficiencies are coming because the revenue has grown up by almost
01:1774%.
01:18So all these three mixes improving the margins there.
01:22Going forward for the year in FY25, where do we see our EBITDA margins sustaining at?
01:28If you can say about the margins as well as the revenue growth, where do we see from a
01:32near term perspective as well as for the current year?
01:35So this year we are expecting to maintain the momentum on a similar margin to be here
01:41physically.
01:43And moving around in between 25 to 27% to in between that in entire year.
01:49And in terms of revenue growth, we are expecting it to be better because now our capacity is
01:55going to be ready, new capacity will be built in this September and so last two quarters
02:00are going to be a good quarters for us basically.
02:03All right.
02:05So a better revenue growth going forward.
02:07Now, I want to come to your order book.
02:09You had an order book of about 3,400 crore as of the March end.
02:14Where is your current order book standing at?
02:17It is almost on a similar level as much as let's say what we have dispatches, similar
02:23orders has been received.
02:25So we are also close to 3,400 crores to be there.
02:28All right.
02:29Mr. Jadej, I'll come back to you.
02:31But over here, there has been a slight update.
02:33Now the government is mulling the ethanol price hike for FY25, again, committee headed
02:39by the Joint Secretary from Petroleum Ministry and they are holding more rounds of discussions
02:45going forward again.
02:48But coming back to Jyoti CNC Automation now, you said that the order book remained on the
02:52similar level over here.
02:53But if you had to look at the whole scenario, you had guided for an order inflow growth
02:58about 1,500 to 2,000 crore of a month.
03:02So what is the expectations or the order inflow growth?
03:05Where are we seeing more of these order coming in from?
03:08In particular, which segment are we focusing on?
03:11So basically, this year, the orders inflow is coming from the aerospace defense, as well
03:17as the new upcoming market on the EMS there.
03:21So with this too, what the target we have close to 1,500 to 2,000 crores is maintained
03:27and will reach out the end of the year to be this numbers to be there.
03:31All right.
03:32And of the 3,400 crore order book which was there, how much are you planning to execute
03:36this year?
03:38So based on our capacity expansion, how it is rolling down on like that.
03:45So we are expecting to sustainable growth from last year to this year.
03:50We are going to complete this order book in within the next 15 to 18 months to be there.
03:55All right.
03:56And coming to the competition scenario over here, in the CNC, you had earlier maintained
04:02about a 10% of a market share in India.
04:05Are we seeing any market share gains over here?
04:07What is the competition scenario looking like both on the export and the domestic side?
04:11So in India, still we have a great opportunity because the market is by two-third been sold
04:16by the import machines.
04:18And currently, we are exporting also.
04:22So we are expecting to our market share will increase in India and will compete to the
04:27all these Japanese and German manufacturers to be here.