Jyoti CNC Q4 1st Earnings: Revenue, Margins Surge YoY; Opportunity In EMS Space| Parakramsinh Jadeja

Focus to what's happening at Jyoti CNC, The management is joining us. Mr. Jadeja is joining us, the Chairman and the MD of Jyoti CNC to talk to us about the way going forward. Hi, Mr. Jadeja, good to be speaking with you. Thanks so much for making time and speaking with us. In terms of the other internals that we're looking at in terms of the earnings, the revenue is pretty much flat, but the profitability has seen quite a bit of good growth and it's coming closer to 100 crore rupees. And the order book also continues to be quite strong in the coming year. What kind of growth rate should we expect in terms of top line and profitability? Hi, thank you. I think we will maintain our momentum. The way our order book is even this last quarter also has rose very well and we have executed close to 400 plus and our order book is mostly around 600 crore plus. So the momentum and in terms of a revenue and in a margin side also is going to be improving coming quarters gradually to be there. So the Street is clearly penciling in very strong growth for the coming next two to three years and they're talking about a revenue profile of almost 3000 to 4000 crore rupees for you when you see yourself achieving that number. So let's say this year we are increasing the capacity and capacity will come in a place in the next one or two quarter and we'll see the improvement on a similar trend to be there. We are committed to the our customers to deliver this all whatever this our order books are there. We have to deliver in one and one to one and half year there. Does that mean 3 to 4000 crore top line is possible within three years with a EBITDA margin of 25%, thereabouts, that's look likely to be there. Let's see, surely we will watch out for that number in the next three to four years, at least on your top line front. But what about your margins as well? What is the expectation? Because this time we're seeing a sharp improvement in terms of margin expansion there. So do you think these margin levels that you've seen this time of around 29% that is something sustainable in FI 25? Yeah, the margin we are looking to be a sustainable and looking to be a little bit to be improved there and the the model mix, let's say the defense and aerospace, the way this order book is in our Kitty today. Once that been execution, the margin is to be stable and to be from here to be little bit improvements. We will see that more improvement from this 29% is what we are seeing and you know given that order book also you're talking in Arrow as well as Defense space which is leading to the better improvement in terms of margins. So what is the current order book that you're seeing in Arrow and defense side and what is the outlook for FY25 there? So basically today's our order book is close to 1900 crores from the aerospace and defense and we are looking to be a similar number to receive for the more orders there are more pipes are there in India also there are a lot of budget as government has given to the all the defense companies and we are already are are are talking to them and received all the RFQ and everything we are working with them and as well as even the global right now there are a lot of investments are going on a different site. So we are looking to be a very strong order book in this coming year, every quarter to quarter that will be included. Just one more thing I want to know as in terms of the EMS segment, right, what is the outlook there? Just a short while ago we spoke to Dixon Tech also, they were saying how this EMS industry overall is seeing a very good growth across the segments and across sectors. What is it that you are seeing for the company, 13% contribution now coming in from EMS. What is the growth there expected? So we are looking to be the EMS in the next one or two years will reach out to a close to 25 to 30% of the total revenue is a 1/4 of our total revenue we are going to see in in the next two to three years time in the EMS. It's, it's the fastest growing sectors and we are working with them very well. What could it become in terms of let's say the total size for you because the competition is also heating up. A lot of companies are getting into that right from Akene, CERMA to other companies as well. And what's the export potential because right now it's almost 40% of your business already. What could that scale up to? So basically let's say in EMS business right now these are let's say we are manufacturing the machine CNC and supplying to all these manufacturer and particularly those are the mobile manufacturing, the watch manufacturing and all kind of this equipments like that. Until today in this space Japanese was always to be dominating even in China also the all the people are using the Japanese machine. So there we got this entry and we have a nice opportunity to be there. So there is not in terms of here is a much competition we have to prove ourselves much better over there and we prove out there and we entered very nicely to be there. In terms of your questions about the exports, yes, we are looking to be a 40 to 45% to be 10 or the next two to three years on export side to be there. We are going to be a balanced in India and exports business to be here. OK. So looking for those niche areas to make sure that you have enough market share and not losing out of competition. Thanks so much Sir for making time and speaking with us, a pleasure speaking. If you like this video then like, share and subscribe to ET Now.