Jyoti CNC Automation Limited — Call Transcript 2025

Feb 13, 2025

JYOTI CNC AUTOMATION LIMITED CIN: L29221GJ1991PLC014914 Regd. Off.: G – 506, Lodhika GIDC, Kalawad Road, Metoda, Rajkot – 360 021.

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Date: February 13, 2025

To, The Department of Corporate Services, BSE Limited, Mumbai

To,

The Listing Compliance Dept. National Stock Exchange of India Ltd, Mumbai

BSE Script Code: 544081

NSE Script Symbol: JYOTICNC

Dear Sir/ Madam,

SUB : TRANSCRIPT OF CONFERENCE CALL POST DECLARATION OF THE FINANCIAL RESULTS OF THE FOR THE QUARTER /NINE MONTHS ENDED ON DECEMBER 31, 2024.

In continuation to our letter dated February 06, 2025 and February 11, 2025, a Conference Call was hosted with the Management of Jyoti CNC Automation Limited on February 11, 2025 for discussion on the financial results for the quarter /nine months ended on December 31, 2024.

A Transcript of the above Conference Call is enclosed herewith.

Please take the same on your records.

Thanking You,

For Jyoti CNC Automation Limited

Maulik Digitally signed by Maulik Bharatkumar Bharatkumar Gandhi Date: 2025.02.13 Gandhi 14:39:41 +05'30' ____ Maulik B Gandhi Compliance Officer and Company Secretary Membership No.: F8819

Encl.: As Stated Above.

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“Jyoti CNC Automation Limited 3Q FY25 Results Update Conference Call”

February 11, 2025

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MANAGEMENT: MR. PARAKRAMSINH JADEJA - CHAIRMAN & MANAGING DIRECTOR, JYOTI CNC AUTOMATION LIMITED

– MODERATOR: MR. HARSHIT PATEL EQUIRUS SECURITIES

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Jyoti CNC Automation Limited February 11, 2025

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Moderator:

Ladies and gentlemen, good day and welcome to the Jyoti CNC Automation Limited 3Q FY25 Results Update Conference Call hosted by Equirus Securities.

As a reminder, all participants' lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Harshit Patel from Equirus Securities. Thank you, and over to you, sir.

Harshit Patel:

Good afternoon, everyone. Thank you very much for joining in.

We have with us Mr. Parakramsinh Jadeja – Chairman & Managing Director of the Company. Jadeja sir, I would request you to give your “Opening Remarks” on the 3rd Quarter FY25 performance and your outlook. Over to you, sir and then we will take it up for Q&A.

Parakramsinh Jadeja:

Thank you, Harshit. Good evening, friends.

I am delighted to extend a warm welcome to each one of you to have chosen to invest in Jyoti CNC. Thank you for the level of trust and confidence you have placed in us. Your decision to join us as investors has boosted our confidence to another level. I want to assure you that we are fully committed to maximizing the value of our shareholders. We truly understand and responsibility that comes with your investment. And we promise to deliver the best of us. With your support and backing, we are confident to achieve even greater heights in days to come. I would like to take this opportunity to express my heartfelt gratitude to each of you for your belief in our Company's potential. Welcome to the Jyoti family. This is our sixth consecutive quarter of robust growth. We have made a good base to carry forward the growth momentum going ahead.

Let me take you through the Quarter 3 numbers:

We have clocked the consolidated revenue of Rs. 449.5 crores in Quarter 3 FY25 as compared to Rs. 337 crores in Quarter 3 FY24, delivering the growth of 19%. We have clocked the consolidated EBITDA of Rs. 112.6 crores in Q3 FY25 as compared to that Rs. 96.3 crores in Q3 FY24, delivering the growth of 17%. The EBITDA margin is 25% in Q3 FY25 as compared to that is close to 25% in Q3 FY24. We have maintained the same margin year-onyear. We have clocked the consolidated PBT of Rs. 93.1 crore in Q3 FY25 as compared to Rs. 67.2 crores in Q3 FY24, delivering growth of 39%. We have clocked the consolidated PAT of 80.2 crore in Q3 FY25 as compared to that of Rs. 48 crores in FY24, delivering the robust growth of 67%.

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Our Q3 FY25 consolidated revenue is Rs. 449.5 crore consists of 49% of the aerospace, 16% of the auto and auto component, 21% from general engineering, 10% from EMS, and 4% of the rest other. Our Q3 FY25 order intake comes to Rs. 492 crores, which consists of a 34% from aerospace, 25% of auto and auto components, 36% from general engineering, 1% from die and mould, and 4% of the rest others. Our total consolidated order book as on 31[st] December 2024 stands at Rs. 4,360 crores. The industry segment split for the same age; 41% from aerospace, 16% from auto and auto components, 18% from general engineering, 16% from EMS, 4% from die and mould and 5% of others.

Now let me take you through the consolidated 9-month performance of the Company:

In terms of revenue:

We have clocked the consolidated revenue of Rs. 1,242 crores in 9 months FY25 as compared to Rs. 888 crores in 9 months FY24, delivering the growth of 40%. In terms of EBITDA, we have clocked the consolidated EBITDA of Rs. 313 crores in 9 months FY25 as compared to Rs. 167.1 crores in a nine-month FY24, delivering the growth of 88%. The EBITDA margin is 25.2% in 9-month FY25, as compared to that 18.8% in 9-month FY24. In terms of the profit before tax at the PBT level, we have clocked the consolidated PBT of Rs. 271.2 crores in 9 months FY25 as compared to that Rs. 77.3 crores in 9 months FY24 delivering the growth of 251%. In terms of the profit after tax, we have clocked the consolidated PAT of Rs. 207 crores in 9 months FY25 as compared to that of Rs. 51.2 crores in 9-month FY24 delivering the growth of a 304%.

Our total consolidated revenue for 9 months FY25 stands at Rs. 1,242 crores. The industry segment, split for the same is 45% from aerospace, 24% from auto and auto component, 18% from general engineering, 7% from EMS, 1% from die and mould, and 5% rest others. There are many people who have been joined over here that I will make a very quickly Jyoti at a glance.

The Company started inception in 1989. We have a subsidiary Company called as Huron Graffenstaden in France, Germany, Canada, and Turkey. Our total plant area is close to 253,000 square meters. We have a two manufacturing facility at Rajkot and one facility at Strasbourg, France. We have more than 200 plus product variants and more than 130,000 plus machine installs across the globe. Today, our closing order book is close to Rs. 4,360 crores over here. Today, our plant installed capacity has reached to 6,000 machines per annum in India and 120 machines per annum at France.

In a key milestone in 2025, we have launched around 7 new models in January 2025. The model called as a GU8. This is a 5-axis Gantry type machining center. AWT is an alloy wheel turning machine. BTM is a twin spindle with a gantry automation. ATM 200 is an inverted turning center with automation especially for the EV segment. HP 4000 and 6000 is a high-

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performance series of a horizontal machining center. TachyonBeta is one of the 5-axis highest, the world's fastest the machining center that we have been developed. And this is the key milestone in 2025.

In terms of a total employee:

The employee count has reached to now at December ‘24 is to be 3,277. And we have added approximately 200 people in Q3 in line with our increased focus on execution. From first April to 31st December, close to 390 people have been added on a Jyoti team over here. Entire of the plan is fully vertically integrated. We have all manufacturing facilities like your own foundry. We do all critical machining components, sheet metal shop, paint shop, all the world-class subassembly, assembly, and the R&D center. The R&D center is, let's say we have more than 140 engineers working at Rajkot and combined to be a Strasbourg at all.

In this journey, we have developed more than 200 plus product variants and we have added 7 in this year, and particular in FY2025 over here. In terms of the manufacturing capacity, we have close to 237,000 square meter is industrial area at Rajkot. And phase one, we have a 6,000 machine per annum as a capacity has been installed. And we have furthermore three more phase we can do over here on a same facility, that much of place is available over here.

Huron is basically our technology backbone. Basically Huron is located in a very strategic location on a central part of Europe. It's in border of France, Germany and Switzerland place called as Strasbourg, an exposure to the world-class manufacturing there. Basically, all the world machine tool builder is surrounding on a 200 kilometer of area. Huron has a technology access for us to be the highest sophisticated 5-axis technology product to be there. In our product basket, because of the Huron, we are able to maintain all the aerospace and very highprecision manufacturing areas to be there. We have, because of Huron and the Huron history, from 1857, so very renowned brand values, the carrying and market approach and reach have been given by across Europe, China, US, Canada, and all the areas to be there.

In terms of our sales and distribution network:

Today we are 29 sales and service centers spread across the 12 states in India, 2 distributor dealers in India and 11 let's say the offices and all are like that. Mostly Jyoti CNC sales product through its dealer network and directly to its customers there. In terms of a global customer base, wherever the manufacturing that are there, the Huron and Jyoti, more than 130,000 plus machine installation across more than 60 countries to be there. In terms of industry segments, we are serving into aerospace, die and mould, automobile, electronics, railways, agriculture, infrastructure, oil and gas, healthcare, walls and pumps, power, and bearing industries like that.

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Our product presence across the value chain, we have classified in terms of the three categories. We call it as an entry-level product. We consider entry-level product is zero to 50 lakh is considered to be an entry-level product. Mid-range is a 50 lakh to 2 crore. High-end machine, we consider 2 crores and above. It's considered to be a high-end product. We have very marquee customers in terms of aerospace. We have HAL, Tata, Airbus, The Thai,, the GE, Safran, the Boeing, Sikorsky, AVIC, Bharat Forge, and in automobile all these, Tata, Mahindra, BMW, Volvo, Mercedes, Ashok Leyland, Fiat, Volkswagen, Audi, and many of our customers are in India. In India, we have more than 12,000 plus customer base.

In recent, we are recognized by the Times Group as Best Brand in the Metal Cutting Industry, consecutively seventh time from 2018 to 2024, and recognized as an iconic brand of India by ET, the Economic Times Edge, on this December over here.

Let's say road ahead, I would like to tell you something about the global machine tool industry. Today, the machine tool consumption worldwide is close to $79 billion. Currently, India has a consumer rank of 6 with 3.9 billion consumption. And expected to be by 2030, India is expected to be entering the list of top three global consumer of a machine tool globally there.

Let's say with this our mission, propelling technology, and prospering life. In that, we are let's say a strong management team, a world-class manufacturing infrastructure, wide range product basket, the strong R&D capabilities, large installation base, global footprint, legacy and technology from the Huron, and manufacturing and the tailwinds are let's say today's manufacturing growth in India. In this, we consider like that we have four engines are our future and of our life there. The number one engine is already fully fired that we call it as automobile and general engineering. The second engine is an aerospace that also has reached to almost equal level over here. The third engine is we are looking to be a next coming year is to be EMS and going forward, the fourth engine we are looking to be a semiconductor industry to be there.

In terms of Aerospace:

The global aerospace market is expected to reach to $1.3 trillion, and at the rate the CHGR is growing almost, they expect it to be grow up to 2030 to 8.2%. And increase in aerospace spending globally due to the lot of geopolitical circumstances out there. So, next, another 5, 6 years, we are looking very much at the high potential growth we are seeing in the aerospace industry.

In EMS:

The Indian EMS industry has expected to grow at an annual rate of 34% until FY27-28, reaching a triggered value of close to $54 billion today. Mobile phone exports from India during FY24 has reached an all-time high to close to $15 billion over here. The overall

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electronic exports jumped nearly 24% to close to $30 billion in FY24. The potential of a CNC machine demand in EMS industries in India is over more than 1 lakh machines within a span of the next 5 years. In automobile, the global electrical vehicles market is expected to grow at 17.8% of CAGR during 2024 to 2030. The electric car market in India is expected to grow to 56% CAGR during 2024 to 2030. Global EV market size is expected to reach to close to a US $600 plus billion and will grow at close to 9.8% of CAGR by 2028. Here, we have a very special product to fit into this all product range over and we are working and developing many products to manufacture those special components that are required to this among these industries.

The Upcoming Market :

We are looking to be a semiconductor. The Indian semiconductor industry is expected to grow at a CAGR of 19.7% from 2020 to 2023 to 26-27. Let's say the Tata semiconductor chip fabrication unit in Gujarat was approved and with an outlay of nearly close to Rs. 500 billion are there. And all our products, we are working towards to develop a new product basket to fit into use of a semiconductor industry to be there.

Strategies for the next leap:

We have four main strategies that are there:

First is people development because the most key challenge in going forward, what we envisage that the people is a key of this industries. We need a very high quality and precision people are required over here. And for that, this is our first direction to move forward over there.

Product development is key because we need to produce a variety of range of machines to fit for our customer.

Third, strategies in market expansion. We need to reach out still to be some global areas like the USA and China is the biggest potential market is available for us.

And last, manufacturing capacity hands on the expansion based on the going forward. Every 2 years we need to expand our capacity and these are the main four strategies to be there.

The first is the People Development:

To take care of that, we have developed the Center of Excellence and that has been the setup over here in our facilities at Rajkot to imbibe the growth mindset, to foster technology and innovation, to ensure the quality, to enhance productivity, to make Jyoti a Great Place to Work. And with this motto of lead self, lead others, and lead the business.

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In terms of Product Development:

Recently, one of the most renowned exhibitions called as the IMTEX held in January 2025. And we have participated at IMTEX 2025, which is the largest machine tools exhibition of the nation, which takes place every 2 years. Jyoti has participated with a booth size of close to 1,500 square meters and displaying at close to 24 machines a year. The footfall for the IMTEX 2025 was historically high with 1,33,000 business visitors from 70 countries, which might have generated to spot business worth more than 3,500 crores and the business inquiries worth approximately close to 37,000 crores. Jyoti has also received a total of 3,000 plus machine inquiries on this spot over here on 7 days there. We have witnessed very encouraging plus the enthusiasm from the entire industrial spectrum. Lots of corporate and SMEs were found bullish on the CAPEX front and shared their ambitious CAPEX plan for the near future. It seems a huge investment is on the way in the aerospace and defense, automotive, particularly in EV, general engineering, infrastructure, power, agriculture, die and mould, healthcare, and EMS sector there. It was a great opportunity for us to demonstrate our capabilities to complement for the forthcoming investment cycle in capital goods. We have launched various state-of-the-art, the machines to cater, the sophisticated metal cutting application and propose a better substitute against the imports.

Let me just remind you here, till today, the import share in Indian machine tool consumption is more than 60% here. In terms of manufacturing capacity expansion, on a last call I already discussed about that, that the capacity is, let's say, we have reached 6,000 machines. And now we are adding further more capacity. Based on our order book, it's so solid and strong. And to overcome this, we are going to make close to additional 10,000 machines a capacity within the next 2 years over here. The new infrastructure of 6,000 machine plant capacity will come into a full utilization from quarter 4 of this.

The new building at Huron, at SO2, will be finished by end of the March because in Huron also, the expansion is going on and all the necessary industrial and safety permissions are expected to come in the month of May and the new building will be fully operational from June 2025. To capture the ongoing business opportunities from the European market as have already added, we already added 24 people at Huron level also.

With this, I once again thanks to all of you there to be participated into this our journey and encouraging to all of us over here. Thank you very much.

Moderator:

Thank you, sir. Should we begin the question and answer session? Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press ‘’ and ‘1’ on the touchtone telephone. If you wish to remove yourself from the question queue, you may press ‘’ and ‘2’. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. First question comes from the line of Akshay from AK Investments. Please go ahead.

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Akshay:

Yes. So, I just wanted to understand the quarterly numbers. So, this quarter also, we have showed good growth. But if we compare the first 2 quarters of this fiscal year, then growth was even more compared to the Quarter 3 year-on-year growth. So, can we have some color on that front? And second on the, quarter four, how do we see the quarter 4 shaping up in terms of growth, year-on-year growth?

Parakramsinh Jadeja:

I could not understand your first question.

Akshay:

Sir, after the robust first 2 quarters, in the first quarter we had year-on-year growth of 74%. And in the second quarter we had 43% growth. But in this quarter, we have only 19% growth, year-on-year growth in the Quarter 3. So, can you put some light on that? And how is shaping up of quarter 4 is going to be a part? Thank you.

Parakramsinh Jadeja:

I understood now. So, basically, in Quarter 2 and Quarter 3, we have, let's say, in past call also, I told you that we have reached to some bottleneck area to be there in terms of growth. And that's why we are removing this. And we have removed in September, we have put up all infrastructure into place over there on Quarter 2 end. And this is, let's say all the systems and procedures and everything is separate into this one quarter. And you will see, this all the additional facility comes in picture, that you will see in the coming quarters to be there. So, Quarter 2 and Quarter 3, we were completely utilized, almost our good level of capacity to be there. And there were bottleneck was there, it has been removed, but that we have a long manufacturing process involved. So, that we will see the color in coming quarters. And in terms of the quarter 4 compared to this Quarter 3, you will see a good growth to be there. Momentum will be maintained there.

Akshay: Okay, sir. And secondly, my question is on the order book front. So, currently we have the order book of around Rs. 4300 crore. So, what is the expected timeline to execute the same and can we maintain the same current EBITDA margin of 25% in this order?

Parakramsinh Jadeja:

Yes, so in terms of what order we have in there, okay? So, based on that, definitely we are able to maintain the margin level over here from going forward up to this order book level also to be there. Today, based on our today's run rate, this order book is close to 2.5 years, but none of our customers are expected to be like that. So, that's why we are expanding our capacity and furthermore expanding. And we would like to finish this order as soon as possible. So, today's run rate, this order book is close to 2.5 years. But our customer expectations to deliver faster, then we are also enhancing our facility. So, we are also expecting to deliver much faster.

Moderator:

Thank you. The next question comes from the line of Sandeep Jain from Baroda BNP Paribas Mutual Funds. Please go ahead.

Sandeep Jain: Hi, sir. Thank you for taking my question. Couple of things. In the current quarter order book, we have not received any EMS orders. Is that right? Means if it is showing a 0% kind of?

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Parakramsinh Jadeja:	Yes.
Sandeep Jain:	Any specific reason or are we expecting further order from here kind of?
Parakramsinh Jadeja:	Yes, so basically, let's say last quarter we got a big order and all and today, our order book has
	reached to the place where there is less than 2.5 years of delivery time there. Once the light
	will come, our manufacturing capacity will increase. And our customers also will feel that we
	have a now capacity in place. We will see furthermore orders on EMS sectors.
Sandeep Jain:	Okay, so the Rs. 525 crores of order which we have got in quarter two, the execution timeline
	for that is 2, 2.5 years kind of?
Parakramsinh Jadeja:	No, that is we have to, the expectation is to this, this entire order we have to release before,
	let's say December, the last quarter of 3rdQuarter and 4th Quarter we have to finish this.
Sandeep Jain:	Okay and then only you will get the new order that is the correct?
Parakramsinh Jadeja:	It's not like that, but as the capacity becomes in line, there will be some more orders will come
	by.
Sandeep Jain:	Okay, and in this quarter if I look at the revenue growth was around 19% right? So, I expect
	that the overseas there would be outside India, there would be a less sales kind of.. So, what is
	the situation there? What is the India sale? What is the outside India sale and how the overall
	order book which is of Rs. 4300-Rs. 4400 crores, how much are the overseas orders and how
	much are the domestic orders?
Parakramsinh Jadeja:	Yes, so basically our aerospace order book, that mainly comes from Huron.
Sandeep Jain:	Okay, Rs. 1800 odd crores?
Parakramsinh Jadeja:	Yes, so that is there. In France, we have one of the best order book situations today. Today, we
	are facing only one challenge over there. It's a really we are clumping on a capacity size there.
	The full floor is jammed there because we have all these manufacturing that these machines
	are very high value machine, each machines are more than 10 crore plus like that and
	occupying a more space are there and our infrastructure is still, let's say, is under enhancement
	there. Once that will be in a place, the Huron, we will see much bigger growth in the next
	coming after 2 to 3 quarters there.
Sandeep Jain:	Okay, so in this quarter if I look at, I mean...
Parakramsinh Jadeja:	Just in my speech I have covered that we have added almost 24 people, okay, because
	parallelly we need people also. So, there's all people also is under training and everything has

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been done now. So, almost 15% of the people also have been added on there. And we still we are putting other people parallel to our infrastructure.

Sandeep Jain : And the growth in the revenue is 19% for this quarter only, year-on-year growth. But aerospace and defense is contributing around Rs. 220 odd crores. So, where is the kind of, I feel that it is below our guidance kind of thing. Whether this will be bunched up in the quarter four or what is we can understand about it?

Parakramsinh Jadeja : So, in terms of the aerospace and the execution of aerospace, if you look at that, in this quarter, close to 49% execution is the aerospace industry.

Sandeep Jain :

Correct.

Parakramsinh Jadeja : And that is compared to Quarter 3. Quarter 3 was 38%. So, it improved a lot there.

Sandeep Jain : No, so the revenue growth guidance of what will be the revenue growth guidance for the full year then? Means are we on track to achieve Rs. 2000 crore of revenue?

Parakramsinh Jadeja : Based on let's say we have not made any guidance like that over here in a call anywhere. But we are let's say in terms of this execution will improve. Definitely, we will march towards to all our target values.

Sandeep Jain : And the mess in this quarter is largely due to?

Parakramsinh Jadeja : Let's say execution side, the capacity just came in September and that's the first quarter only we have seen. So, all the settlement and everything was going on and parallelly we were developing many new products, the participation over here.

Sandeep Jain : Okay, fine. Thank you.

Moderator : Thank you. The next question comes from the line of Swanand Samant from Klay Capital. Please go ahead.

Swanand Samant : Hi sir, congrats on the good set of numbers. So, my question again is on the revenue side. So, if I remember correctly, at the start of the year, we had an order book of somewhere about Rs. 2000 plus crores and at that point of time we decided that this is executable over a period of 1.5 years. So, if I back calculate it, our revenue run rate should have been somewhere about Rs. 550 crores, which has not been the case for the past 3 quarters. So, just wanted to understand, you said that the one of the bottleneck was the capacity. But do that guidance still kind of holds to be can we increase this revenue run rate going forward? That's my first question. I mean, what is your sense, how quickly we can ramp this up? And secondly, on the order inflow side, especially on the aerospace and defense, so we have got somewhat about Rs. 550 crores in the 9 months in terms of order inflows. But if I remember, we were guiding about

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Rs. 1500 crores of order inflow at the start of the year. So, just wanted to get a sense from you what's happening there, why have we kind of underperformed on that? And secondly, the mix of the order books are related question to that, that the mix of the order, aerospace and defense in the closing order book has gone down to somewhere about 40%, which I think has the highest margins for us. So, kind of when we started getting this Rs. 4,000 crores of order book, do we expect that the margin next year would or could be slightly lower than financial year 25? Yes, those are my questions, thanks.

Parakramsinh Jadeja :

So, there are many questions in queue there, in one queue of questions. So, let me start with the first, to be a capacity. Let's say, we left it today also. I mentioned in my previous answer that today based on this Rs. 4,360 crores of the order book, in terms of today's run rate, let's say it will take 2.5 years. And we are fully committed to our customers to way early. Their expectation also is to be within 18 to 20 months like that. So, we are increasing our capacity. The first benchmark we have finished on September. The things are in place into, in a ground reality. We will see this in coming quarter to see the numbers there. Parallelly, we have started to expand further more there to overcome over here. And that's now the story behind that. We are also aggressively behind that on our capacity because this is today is the capacity constraint is only is a blocker for us to increase the run rate over here. And even in my call, in my speech, I covered that because the people is a key. This is all our quality executions like that. And these are all very high precision assemblies and all like that. We have added 400 people over 9 months. We have trained them, we put onto that, and many people feel more on that. So, we all are trying to fulfill our quality commitment to our customers and to reach out their delivery at target date like that.

Number two, you have asked that about aerospace and defense. Today, let's say we are not aggressively taking the orders because already we have reached 2.5 months out there. And until these customers are not seeing that the deliveries are happening and then the plant capacity comes into place, there are big fights out there. Many inquiries are online there on our future of this meant to be there . I think this is your two. What is your further third and fourth question or that? Can you remember me that?

Swanand Samant :

Yes, so thirdly on the, again, on the margin side, the aerospace and defense, if I am not wrong, has the highest margins for us. So, on the closing order book pages, that has gone down to 40% versus on the 9 months run rate is about 45% plus. So, do we expect some kind of moderation in margins for next year as compared to this year?

Parakramsinh Jadeja :

No, in terms of today's closing order book, our order book still in aerospace is close to 40% plus there, revenue side. In terms of the closing order book, it is still as an aerospace as a 41% in there, a combination of these two. We don't see any, this is not only the value is not defined only the aerospace. Even in general engineering and all, I say that our business model divided into three categories; entry level product, mid-range machine, and high-end machine. So, midrange and high-end also, in general engineering role, this is increasing. Even this quarter, we

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have seen a 36% over there. So, we don't foresee in the next two years in any challenges in terms of a margin area to be there.

Swanand Samant: Okay, got it. Just a follow up on the CAPEX side. So, when is the kind of new capacity coming in and how quickly can we ramp up? Because I think that's the only bottleneck we are talking about right now. So, how, when is it coming in, how quickly can we ramp it up? Parakramsinh Jadeja : So, basically we are enhanced the pool capacity is in 10,000 machine, but partially we are expecting to first support will come in terms of half the capacity, or let's say 3,000 to 4,000 further machines in this 3rd Quarter of this financial year, FY26. Swanand Samant : Okay, so for the next year also, we will be at the same capacity is what you are saying? Parakramsinh Jadeja : Close to. On the 3rd Quarter, we will see some more lights on the 10,000-machine extra capacity will come in a picture. So, out of that, close to 3,000, 4,000 machines, partially we are able to see the capacity support will come on December quarter. Swanand Samant : Got it. Thanks. Moderator : Thank you. The next question comes from the line of Sanidhya from Unicorn Assets, please go ahead. Sanidhya : Good evening and good set of numbers. So, my first question sir is on the execution side. So, can you highlight the number of machines that we deliver this quarter? Parakramsinh Jadeja : Thanks. So, a number of machines in this quarter we have delivered is to be 894 machines. With the highest ever value, average has reached to 50.27. Sanidhya : Yes, understood. So, this is likely because of the mix of from aerospace and defense. Parakramsinh Jadeja : Correct. Sanidhya : Okay, great. So, could we see this dip a bit because of the EMS getting into the deliverables in the next few quarters? Or do you think this is manageable on the overall order book? Parakramsinh Jadeja : So, based on the order book, I think we will go near in between around 45 to 50 lakhs of a range to be there, average machine line. Sanidhya : Okay, and when do you think the execution from the EMS will push in? Parakramsinh Jadeja : See the parallel EMS number will increase, but parallelly, we are adding capacity in aerospace also. So, it will go hand on hand. So, we are expecting to in this entire order book will be average range to be in every quarter will be in between 45, near 45 to 50 only.

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Sanidhya: No, I was explicitly interested was asking into that. Is there any slowdown in the demand from the EMS or what are we hearing from the customer? Parakramsinh Jadeja : Not at all. Not at all there. In fact, we are now expecting to more capacity come much faster so we can participate on a bigger way there. Sanidhya : Great. And on the new capacity addition, so what's the status? What have we tried this quarter? Parakramsinh Jadeja : So, basically, all the construction of building is going on. The machine shop building is already, let's say it is going to be completed the first day before the March, the assembly building we are expecting to finish somewhere in September and then all the equipment and everything will be start fitting over there on a first phase there. All the equipment and all, the machinery is already, it is going to start to be on a first quarter it will reach to us over here. Sanidhya : This facility is in Rajkot, near our existing or somewhere? Parakramsinh Jadeja : On existing building only. We have an existing, let's say we have a large extra land was available. So, Phase one was 6,000 machine. And second phase, we are doing close to 10,000. Everything is on the same place. Sanidhya : And the images you have shared in the presentation are from the new building or they are from the old capacity? Parakramsinh Jadeja : No. These are the new building is under construction now. Sanidhya : Could you highlight which one among the, I guess, on the page #35, there are four images? Parakramsinh Jadeja : Yes, so what you are seeing in a newly developed assembly line, on page #35, that is the part has been constructed in September and that has already been put to use there. In the left side, what you see the green is not today the green now. This new building is almost about to finish there now. What I said that will be ready in March and April. So, similar way will be the next left side. On the same picture, there is left side. This building is almost now is on a final stage. So, almost a double building has been ready. And in terms of assembly, what you see that in a picture in near bottom is returned to be new sub-assembly under construction. So, that was the part of our, the first bottleneck removal that has been over and it is put to use there now. Then you see the newly developed assembly line. In the left side, it's not a cool picture there. There's another assembly line under construction. That will be finished in somewhere in September. Sanidhya: Okay, great sir. And sir, just one important this, it would be great if we can highlight these things on our social media handles across platforms. And timely updates would be really helpful.

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Parakramsinh Jadeja : Excellent, we will do that. And I invite you to visit our plant also, then only you can verify that very well. You are most welcome. Sanidhya : Sure, thank you. Thank you. Moderator : Thank you. The next question comes from the line of Kushal Mondal with Yashwi Securities Private Limited. Please go ahead. Kushal Mondal: So, what is the current capacity utilization of Huron and how many machines were sold in this quarter? Parakramsinh Jadeja : So, in terms of Huron, where our capacity close to this year is 35 to 40 million Euro to be executable there. It means 7 to 8 million Euro is an 8 million, 8 to 9 million on a per quarter like that. And we are running right now more than 80% capacity. Kushal Mondal : And what is the number of machines used in this quarter? Parakramsinh Jadeja : We have made close to 17 machines to be there. Kushal Mondal : Okay, and the 10,000 additional capacity will come in December 2026. So, what will be the utilization level for additional capacity for the full fiscal? Parakramsinh Jadeja : Until today, we have made close to 2,800 machines in three quarters, particularly 2,723. And we will touch close to 4,000 and 4,500 in between in this year, FY25. And FY26, but your question is FY26. FY26 numbers will see how the capacity utilization or capacity will be ready and utilization will be. Kushal Mondal : Okay, and you have said that Rs. 400 crores of CAPEX were announced for this additional capacity and I remember that in one of the interviews, you said the asset turnover ratio will be 4x which means Rs. 1600 crores of sales. So, now currently the PAT margin is at 15% to 18% which means that you will make around Rs. 240 crores of profit from the additional capacity that is Rs. 1600 crores of sales, which means that Rs. 400 crore of CAPEX you are making Rs. 250 crores which means an ROCE of 60%? Parakramsinh Jadeja : So, yes, we are going to do Rs. 400 crores of CAPEX. And based on this CAPEX, the capacity will reach out to be 16,000 machines there total. It means additional 10,000 capacity will be there. And based on that, all your questions I have given an answer at the time. It is absolutely right. Kushal Mondal : So, you are going to make around 60% of ROCE, right? Parakramsinh Jadeja : In terms of a particular if you calculated add-on value, it's right there. Okay, but if you make total, it will not come to be a ROCE level like this.

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Kushal Mondal:	And calculated the add-on value?
Parakramsinh Jadeja:	And then you have to calculate it based on the today's plant, the investment because this is an
	incremental investments are there.
Kushal Mondal:	So, like on Rs. 400 crore of CAPEX, the ATR you said that it will be 4x, means 1600 crore of
	sales. So, what will be the timeline for this sales revenue number?
Parakramsinh Jadeja:	So, that's what you do. Once the capacity comes in a picture and all I told you in past also that
	entire 16,000 capacity will be utilized in 3years.
Kushal Mondal:	Okay sir, thank you sir.
Moderator:	Thank you. The next question comes from the line of Harshit from Green Investments LLP.
	Please go ahead. Harshit, your line has been unmuted. Please go ahead with your question. As
	there is no response, we move to the next participant. The next question comes from the line of
	Kamlesh Jain from Lotus Asset Managers. Please go ahead.
Kamlesh Jain:	Yes, thanks for the opportunity. And sir just congratulations on one of the best exhibition we
	had from the Indian companies in IMTEX. So, very well.
Parakramsinh Jadeja:	Thank you, Kamlesh bhai. Have you visited?
Kamlesh Jain:	Yes, I have been there, sir.
Parakramsinh Jadeja:	Thank you. Thank you very much.
Kamlesh Jain:	So, just based on your guidance, so it suggests that in last quarter, Q4, we would be doing
	roughly around 70% growth year-over-year in terms of machine sold, which would be around
	1500 plus and 54% quarter over quarter, 54% to 55% quarter over quarter growth?
Parakramsinh Jadeja:	That's the target we are running with today.
Kamlesh Jain:	And just more on the competition side because we have been hearing all your competitors have
	become much more aggressive, seeing the growth in India, particularly in the CNC. So, how
	are we seeing the competition? And are we in terms of pricing compared to, like, say, Fanuc or
	any other counterpart particularly on the pricing side?
Parakramsinh Jadeja:	See, Kamlesh bhai, let's say first of all, it's a great opportunity to everyone because the Indian
	market is growing more than 20%. And the way manufacturing is going to grow, the whole
	world people are targeting to India today. Anyhow, there is a 60% still the machines are
	coming from abroad there, particularly companies like Fanuc and everyone like that. And most
	of the supplies are coming from Japan, Germany, Europe, US, and all these areas. Taiwan and

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particularly Korea also. Again, these are all the competitors. The way Jyoti has been positioned in terms of our plant capacity, the capacity installation and like that, we are one of the most competitive manufacturing landscape. I know you yourself have visited and you have seen our facility. How competitive and still we are making this factory, it's one of the world-class factories to be here. I think we are very much prepared to compete with all the brands. Only they are here and they will increase the load. We are also growing very well over here and we are able to compete them very nicely in terms of the pricing there. In terms of the technology also, have you seen that in IMTEX that we have now, until today we all were always talking to like this, our machines are competing to Japanese, we are able to maintain them, we have the same accuracy level or we have the same technology on all like that. Until today all, we Indians are talking to be like this. Now and if you have visited their exhibition, so you have seen that, we have over crossed this boundaries now. Now we have made this machine, what we say this is better, is twice faster than the Fanuc robot there and many other Japanese machine tool builder there. So, we have lived, we have gone ahead there in terms of technology demonstration also to be there. So, we are fully equipped for this competition in terms of technology, in terms of execution and cost competitiveness.

Kamlesh Jain :

Secondly, on your operation side in the EMS division, actually there has been a lot of media reports that delivery of Chinese labor or the Chinese machinery that has been getting delayed over the last 6 months, 9 months. So, how are we seeing the execution on that particular side? Because the reports have been too much on that particular side. So, are we seeing the delay in execution or in the delivery of your machines?

Parakramsinh Jadeja :

No, we have not seen any disturbances like that. Because these are the still there are all the few we have just everything is looking from the media and all. And if these kind of things will happen in future, I think that will be the great opportunity for all Indian machine tool builder to make similar products. If the machines are not coming from China and they are not allowing their people to hear. So, the space is open for us there.

Kamlesh Jain :

And lastly sir, will you please give the breakup between entry level, mid level and high end machines?

Parakramsinh Jadeja :

Kamlesh bhai, your voice is very...

Moderator :

Your audio is not clear, so maybe request you to use your handset.

Kamlesh Jain :

Can you please provide the break up between entry level, mid level and high level machines?

Parakramsinh Jadeja : So, Quarter 3, so basically Quarter 3, the number of machines in entry level was 817. The midlevel machine was close to 22 and high-end machine was close to 55.

Kamlesh Jain :

Thanks a lot. I wish you all the best sir.

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Moderator:	Thank you. The next question comes from the line of Partha Mazumder from Eastern
	Financiers Limited. Please go ahead.
Partha Mazumder:	Hello, sir. Am I audible?
Parakramsinh Jadeja:	Yes.
Partha Mazumder:	I just need to know, I mean, in aerospace and overall areas that are, machines are actually
	fabricated using our CNC machines? Overall parts are actually manufactured in aerospace?
Parakramsinh Jadeja:	Beg your pardon, please tell me your question clearly.
Partha Mazumder:	Yes, in aerospace, our CNC machines are deployed in which parts are actually manufactured
	using our CNC machines?
Parakramsinh Jadeja:	So, basically, the Jyoti Huron machine is basically being used into all structural part machining
	and our core competencies and maximum machines are going into engine manufacturing.
Partha Mazumder:	So, for instance, if I want to add this into engine parts or?
Parakramsinh Jadeja:	Yes, engine parts.
Partha Mazumder:	Engine parts, right?
Parakramsinh Jadeja:	Yes, the maximum machines are going into engine parts. Even structural, we have a product
	that's going into structural machining also.
Partha Mazumder:	So, I mean, for instance, like another Indian Company, which Azad Engineering actually
	manufactures critical engine parts, so Azad would be one of our customers?
Parakramsinh Jadeja:	Azad is a prime customer. This year also we have supplied many machines and they are
	expanding further more capacity and we are supplying all the machines from Jyoti.
Partha Mazumder:	Thank you, thank you, sir. That will be it, sir.
Moderator:	Thank you. The next question comes from the line of Kushant Arora from Baroda BNP Asset
	Management Limited. Please go ahead.
Kushant Arora:	Thanks for taking my question. Sir, just a bookkeeping part of, I mean, I just wanted to
	understand that what is the contribution of Huron on nine months basis and for this quarter?
Parakramsinh Jadeja:	So, Huron has done close to Rs. 200 crores of revenue in this 9 months.

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Kushant Arora : Okay. Parakramsinh Jadeja : And for this quarter, it was close to Rs. 65 crores. Kushant Arora : And what would be the EBITDA contribution for this? Parakramsinh Jadeja : Great. So, EBITDA in Huron is reached to 15.75% Kushant Arora: All right. It's on 9 months basis. Parakramsinh Jadeja : In 9months basis. In a past, last year nine months basis, it was a loss. Kushant Arora : Right. Okay, thank you. Parakramsinh Jadeja : A substantial improvement has been seen in Huron level there. Kushant Arora: Understood sir. Thank you. Moderator: Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for closing comments. Parakramsinh Jadeja : Thank you very much to all of you. The way your enthusiasm and participation in the questions and the way right now all the additional facility is coming up. I am inviting you all of you to visit our plant and to be a presence over here. Thank you very much. Moderator : Thank you. On behalf of Equirus Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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