Ladies and gentlemen, good day and welcome to the Jyoti CNC Automation Limited Q4 FY25 Earnings Conference Call hosted by Equirus Securities Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant 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 star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Harshit Patel. Thank you, and over to you, sir.
Hi, good evening everyone, and welcome to Jyoti CNC's Q4 FY25 Earnings Conference Call. We have with us Mr. Parakramsinh Jadeja, Chairman and Managing Director of the company. Sir, if you can start by giving your overview on the Q4 performance as well as outlook for FY26 and beyond, and then we will open up for Q&A. Over to you, Jadeja, sir.
Thank you, Harshit. Dear investors, good afternoon to all. These would be our second yearly results since the launch of our IPO. As I had expressed earlier also, we can fragment Jyoti's journey into three phases. Number one, establishment, second, sustain, and third, is grow. Since the inception of the company, way back in 1989, the initial phase was the learning phase, from where the company has grown from a tiny startup thriving to find its space in the machine tools industry. From that, a small founder-driven company, Jyoti has slowly emerged as an established SME and gradually emerged as one of the leading machine tool builders of the nation. Slowly, it has become a professional-driven entity from the founder-driven management.
Finally, we are carving the way ahead to make Jyoti a people-driven institute which will run for the generation to come on the strong fundamentals of our core values. Friends, this would be my fifth investor call since the launch of our IPO. At this juncture, you would have many questions with respect to financials and business of the company. Surely, I will be addressing the same in the next part of our call itself. Since we have gathered en masse today, I would be glad to share the long-term strategic insight for the road ahead. Jyoti is on the way to build a strong foundation as a concerned business house that belongs to Indian manufacturing opportunity.
Machine tool industry, being the mother industry for manufacturing, we are well prepared to contribute to the nation's initiatives of Make in India and subsequently would contribute to the GDP of the nation. It is a fact that manufacturing in any nation can only grow where the machine tool industry is in a mature state. For example, countries like Japan and Germany have marked their dominance in manufacturing because they have a well-matured and advanced machine tool industry driven by innovation and technology. It's now time for India to mark this strong manufacturing footprint through innovation and technology-driven machine tools. We had envisioned the strong industry pillars like aerospace and defense, automobile, general engineering, and industrial automation would flourish in India and will enable us to become a manufacturing hub globally.
Our aspiration to cater to the aerospace and defense industry can only be fulfilled with technology and innovation. This was the reason behind our acquisition of Huron in France, which gave us access to the most advanced 5-axis precision machining. In the same way, we had anticipated way back in 2015 that India would become the next manufacturing destination after China for electronic manufacturing, and hence, the relevant product development were initiated by our R&D team, which has paid us through our back-through entry in the emerging EMS ecosystem in India. Till today, the foundation of Jyoti was built on its strong mechanical expertise base. The company has been producing the high-precision mechanical components and machines for decades.
As our long-term business strategy, we would like to build our strong foothold in mechatronics and not only the mechanical aspect of manufacturing. Now, we are building our championship in electronics also, and hence, we have already initiated the manufacturing activities and design and development of Servo Motors, Servo Drives, various electronic sensors, PLCs, controllers, which will enable us to manufacture the industrial automation and robotics in the coming days. Subsequently, this developed expertise in the electronics field would also help us to cater to the emerging semiconductor industry in India. Being a responsible corporate house, we are equally concerned about sustainability. The company is determined to have a net-zero carbon footprint within the next couple of years through various Go Green initiatives.
As a part of diversification, Jyoti is also exploring opportunities in various solar energy-related manufacturing activities, which are currently being catered through imports from China. We foresee a huge surge of demand from this industrial sector, which cannot be ignored by an engineering company like ours. Finally, in line with our vision 2025, we are producing the highest quality, the lowest cost, easy-to-use product for our customers that integrates innovation and technology. The lower manufacturing cost is already reflected through higher margins in our March 2025 results. Now, let me go through the financials of Q4 in FY25. First, let me take you through the financials of Q4. Revenue, we have clocked the consolidated revenue of INR 576 crore in Q4 FY25 as compared to the INR 450 crore in Q4 FY24, delivering a growth of 28%.
At EBITDA level, we have clocked the consolidated EBITDA of INR 178 crore in Q4 as compared to the INR 134 crore in Q4 FY24, delivering a growth of 33%. The EBITDA margin has increased to 30.9% in Q4 FY25 as compared to 29.7% in Q4 FY24. At PAT level, we have clocked the consolidated PAT of INR 109 crore in Q4 FY25 as compared to the INR 100 crore in Q4 FY24, delivering a growth of 9%. Our Q4 FY25 consolidated revenue from operations of INR 5 76 crore consists of 44% from aerospace and defense, 23% from auto and auto components, 23% from general engineering, 4% from die and mold, and 6% rest of those.
Our Q4 FY25 order intake comes to INR 530 crore, which consists of 29% from aerospace and defense, 33% from auto and auto components, 26% from general engineering, 5% from die and mold, and 7% others. Our total consolidated order book as of 31st March 2025 stands at INR 4,346 crore. The industry segment split for the same is 39% from aerospace and defense, 17% from auto and auto components, 19% from general engineering, 16% from EMS, 4% from die and mold, and 5% rest others. Now, let me take you through the consolidated FY24-25 performance of the company.
In revenue, we have clocked the consolidated revenue of INR 1,818 crore in FY25 as compared to the INR 1,330 crore in FY24, delivering a growth of 36%. At EBITDA level, we have clocked the consolidated EBITDA of INR 491 crore in FY25 as compared to the INR 301 crore in FY24, delivering a growth of 63%. The EBITDA margin is 27% in FY25 as compared to the 22.5% in FY24. At PAT level, we have clocked the consolidated PAT of INR 316 crore in FY25 as compared to the INR 151 crore in FY24, delivering a growth of 109%. Our total consolidated revenue for FY25 stands at INR 1,818 crore. The industry segment for the same is 45% from aerospace and defense, 23% from auto and auto components, 20% from general engineering, 5% from EMS, 2% from die and mold, and 5% rest others.
Let me quickly brief you because many people may join and new people. So many times I made this presentation, but I will let me have some quick view on that. Incepted in 1989, Jyoti has grown multi-fold. Jyoti has its subsidiaries, offices in France, Germany, Canada, and Turkey. We have two manufacturing plants at Rajkot, measuring 253,000 sq m, and one at Strasbourg, France, measuring 46,000 sq m. In this journey, so far, we have designed and developed 200-plus product variants and have sold approximately 135,000+ machines across the globe. Our order book today stands at INR 4,346 crore, and we have installed the capacity of 6,000 machines at Jyoti and 120 machines at Huron.
Let me go a little bit back. Let's say in 2007, Jyoti acquired a French machine tools company, Huron, which is catering precision CNC machines of aerospace and defense industries. In 2008, we established the R&D center called Leonardo da Vinci R&D Centre at Rajkot. In 2016, Jyoti designed and developed the 5-axis multitasking machine in partnership with IIT Chennai under the Indian government scheme from the Department of Heavy Industries. In 2017, we launched a 7th SENSE as an Industry 4.0 tool and a platform, as well as the KX300 machine for aerospace industries. In 2019, we launched an artificial intelligence AI system named PreciProtect for machine collision prevention there. It is a real-time collision prevention. In 2022, we launched a VST 160 machine to cater to EV vehicles.
In 2024, Jyoti got listed on the NSE/BSE exchange on 16 January 2024. In 2025, we have launched seven new products in January 2025 in the IMTEX exhibition there. Jyoti has an experienced board and highly skilled management team to drive the strategy of the company for the next leap of growth. We have a fully vertically integrated manufacturing facility such as a foundry, machine shop, sheet metal shop, paint shop, sub-assembly, and assembly shop, which allows us to manufacture all the manufacturing components and sub-assembly, critical components and sub-assembly at Jyoti, reducing dependency on external supply, particularly from the imports, and bringing operational efficiency over here.
At our R&D, we have designed and developed 200-plus product variants across 44 product verticals, which, with our continuous focus on R&D, we are able to provide a customized machine and technical solution to our customers. In terms of manufacturing capacity, we have 6,000 machine install capacity at Jyoti and 121 machines at Huron, France. Total land of Jyoti is close to 237,000 sq m , and France we have close to 46,000 sq m . And we will have still more lands available to further growth from here. Our subsidiary, Huron, is a technology backbone for us. It is located in Central Europe, which is a hub of the machine tool industry in the central part of Europe. We got access to simultaneously a 5-axis technology through Huron.
We are able to cater to the European market through our subsidiary, Huron. We have marquee customers based in aerospace and defense industry through Huron products. We have a strong sales and distribution network, a pan-India having 29 sales and service offices across 12 states. Since inception, Jyoti Huron has installed 135,000+ CNC machines in more than 60 countries across the globe. We catered a CNC machine to 12 industry segments, which include aerospace and defense, automobile, electronic manufacturing, railways, die and mold, infrastructure, oil and gas, healthcare, valves and pumps, power, and agriculture sectors. We classify our product range in three categories: entry-level, mid-range, and high-end machines.
Our entry-level machine range we consider from 0 to INR 50 lakhs. Our mid-range machines from 50 to 2 crore, 50 lakhs to INR 2 crore, and our high-end machine range from INR 2 crore to INR 20 crore. Some of our key clients in aerospace industries are Airbus and their ecosystems, Turkish Aerospace, HAL, GE. In China, all AVIC group of industries, in India TASL, Bharat Forge, etc. Our clients in automobile are Tata, Mahindra, BMW, Mercedes, Audi, Volvo, Volkswagen, etc. And there are many such marquee clients in general engineering and other segments. We have received for the seventh consecutive year the award for Best Brand in Metal Cutting Industries by Economic Times. Received the award from IMTMA in 2024 for the export performance.
T hese are our recognitions in India over here. Let me explain to you about the global machine tool industry. The global machine tool consumption of the machine tool is close to $80 billion. Currently, India has a consumer ranked sixth with $3.9 billion in consumption. By 2030, India is expected to enter the list of three global consumers of machine tools. Going ahead, we continue to stay focused and grow our business revenues from aerospace and defense, EMS, automobile and general engineering, and in the future, we are looking towards entering into a semiconductor sector there. Going forward, our strategy enablers will be people development, product development, market expansion, and manufacturing capacity expansion. In people development, leadership development being our prime focus, our center of excellence is fully operational now.
Many of the calls I have given this input that the biggest challenge we are going to see on our growth path is skilled manpower. For that, we have made this our center of excellence. In the last quarter, we have close to 325 people been trained on our center of excellence over here. In product development, in 2025, we have designed and developed and launched following new product variants recorded as GU-8. It is a 5-axis gantry type machining center. AWT22 is alloy wheel turning machines. BTM 100 is a twin spindle gantry automation. ATM200 is an inverted turning center with automation. HP4000 and HP6000 are high-performance series of horizontal machining centers. Tachyon Beta is a 5-axis high-dynamic machining center. HUMA is a future of HUMAn-machine interface.
Recently, we have registered the patent for HUMA, and we got the patent rights over there. HUMA is our operating panel for our machines there. In terms of manufacturing capacity expansion, we have just completed, let's say in the last quarter, 6,000 machines per annum has already completed. In this quarter, we have close to 90% of our facility been clocked in terms of utilization level there. Further enhancement of additional 10,000 machines per annum will be completed in the next two years. Thank you very much. Now we move forward to our next question and answer session.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please proceed.
Yes, sir. Thank you for the opportunity. My question on our CapEx program of 10,000 machines. So first of all, how much amount we need to incur for this expansion? That's the question number one. And the subset of this question is, sir, we have currently an order book of INR 4,300 crores, and you have outlined almost 12 industries where we are catering. So based on the demand and user demand outlook, how do you see the execution of this order book and the overall revenue growth for the company 26-27? That would be quite helpful.
Okay. So let's say about first your questions on CapEx. Actually, on my last call, I have given the numbers. It's close to INR 400- INR 450 crores CapEx are going to be on this additional 10,000 machines of a capacity to be built over here. Your second question about the order book, let's say today what you said is at INR 4,300 crores. Today, let's say the capacity is close to 6,000 machines. It's going to be a bottleneck for us until this new capacity will come to utilize over there. So we will try our best in execution over here to utilize this year to be maximum this capacity and executions over there. So we will overcome this all of our order book and try to do our best over there. Okay.
The second question on the cash flow side, sir, the operating cash flow is negative. And if I look at our balance sheet, there is a sharp increase in the credit level as well as the other financial assets. So when you see our growth is translating into a cash flow generation also, so can you comment on that? Why it is not reflecting in financial so far? How will it change?
Yes. So basically, let's say we are growing on a very long-term manufacturing cycle on a large machine on aerospace and defense. And in the last quarter, subsequently, it has been improved, and this party has been happening and all as in the last moment. So there is a you are able to see in the in-depth levels and all, it has sharply been increased because it happens in the last quarter and last month. So we will see this has been cooled down in coming days. And we are targeting that the positive cash flow in the end of this financial year of 2026.
Okay, sir. Thank you very much for answering all my questions. Thank you.
Thank you. The next question is from the line of Akshay from AK Investment. Please proceed. Hello.
Congratulations, sir, for the great set of quarter four numbers. So I will have a few questions. Yeah. So first question is, how much machines did we sell in quarter four of FY26 and full year of FY26? Sorry, FY25.
One second. 1,349 machines we have sold in quarter four. And full year is 4,072.
Okay, sir. Okay. Fair enough. And sir, what is our revenue and EBITDA margin guidance for FY26? Can we sustain the same growth momentum in FY26 for the EBITDA margins that we have shown in last quarter, this quarter, 31%?
So basically, if you look at that, Jyoti is not in a quarter-to-quarter look at the area. But let's say in the entire year, we are able to maintain the momentum, and we are able to maintain the margin. Always, I have told in my past call also, we will maintain the margin around 25%. That will be sustainable over there.
Sure, sir. And sir, my last question is, how much order flow are we expecting in FY26 across all our categories?
Basically, we are anticipating over here the similar momentum. And this will be there. Right now, there is a lot of opportunities opening up into aerospace and defense in this geopolitical situation. But today, we are almost in terms of today's run rate, we have close to more than two-year order book there. And no customers are expecting a delivery period more than two years. So [Foreign language] delivery or execution improve [Foreign language] , order book flow also will increase accordingly like this.
Okay, sir. Okay. Fair enough. And sir, last one more question if I can ask. There is one patent we have registered for HUMA. So can you?
It's a HUMA. HUMAn machine interface.
Yeah. Yeah. Right. HUMA. So [Foreign language] machines [Foreign language] improvement [Foreign language] margins improve [Foreign language] ?
Let me tell you, it's a very interesting question. Basically, today, the entire world in a CNC machine tool manufacturer are being constrained to use only with the two or three CNC controller manufacturers, one from Germany and one from Japan. And every manufacturer is using like that. Okay? And we are going forward, are going to manufacture a base in our Make in India and our own controller there. So today, this is our first steps towards that. And HMI, the front end of the machines that we have designed at Jyoti's screen, basically. And it is so user-friendly. Basically, our reason was there to be made user-friendly machine to be there.
So all our operators and operation of the machines can be run very smoothly and very nicely. That's why we have designed and developed very unique HMI. There, I'm able to back to back use any kind of a controller, but front end is so nicely that operator easiness is there, basically. And that is the first steps to enter into the complete our CNC manufacturing cycles to be there.
Okay, sir. Okay. Great. Great to hear that. And my best wishes for the FY26.
Thank you. Thank you very much.
Thank you. The next question is from the line of Kamlesh Bagmar from Lotusdew .
Hello. Thank you, Jyoti, for the opportunity and strong set of performance and vision. Sir, my one question was on the follow-up on HUMA. So if we compare it with, say, ABB or FANUC, mid-grade monitors, so how much cost-efficient it would be as compared to these two giants?
So basically, Kamlesh, right? Basically, ABB is not a CNC controller manufacturer. It's basically Siemens. Okay? Let me correct first for you that Siemens and FANUC is the main controller manufacturer today. And in the entire machine tool industries of the world, there are these two, two, three companies over there. And in the entire over this machine, let's say in our entry-level product, this controller cost is contributing close to a 20-25%.
In a middle-level machine, it's close to a 15%, and high-end is close to a 10% or less than 10% like that. It's a huge, big cost. Okay? And there is a great opportunity to add value addition over here. We are looking to be vertically integrated in the future to be a backward integration. Based on that, we are looking to be a good value addition so that we can enhance our margin furthermore from here, basically.
And sir, secondly, let's say in this year, we had a realization per machine of INR 44,063,000.
Correct.
And a margin EBITDA per machine of around INR 12,005,000. So, let's say, the current order book which we have, so would we be able to maintain those margins going forward? And do we expect further add-up because of this HUMA coming over?
No HUMA is just a first step, basically. Okay? That is just the beginning of we need to develop the controllers and all. It will take another two to three years' time. Okay? It's fully integrated into manufacturing cycles and all, it's going to be another two years. It's just the beginning. HUMA is one of the; it's a first step, basically. All our customers, once you user-friendly [Foreign language] .
They should accept, adapt, and like that. Okay? This is the front end of the machine, basically. It's operating systems. What you say in a computer is an operating systems. This is an operating system, basically. Okay? So that we will see into coming years like that. In terms of your first question regarding the average realization, so based on the order book, we are in line with that to maintain the similar average realization in FY26 over there. Hello?
Yeah. It seems like the participant's line has got disconnected. Okay. Shall I proceed with the next?
Yes.
Yeah. Sure. The next question is from the line of Saloni Jain from Nirmal Bang PMS. Please proceed.
Yes. Hi, sir. Am I audible? Yeah. Hi, Saloni.
Hi, sir. Firstly, congratulations on a great set of numbers for Q4.
Thank you. Thank you very much.
Yes. So my first question is, we talked about growth catalyst coming in form of EMS and semiconductor for us, right? So could you please address the question of terms here for both EMS and semiconductor, and what kind of a right to win can we see here going forward?
So basically, let's say whatever the order book we have been built on electronics manufacturing, that we are able to execute nicely on a second half of this year. And on a similar time, we are working with the many projects. Many qualifications are going on. And we are expecting to be a robust order in tech in this year on a similar sector over there.
Okay, b ut so in terms of import substitution, what is the kind of opportunity that we are looking at?
So basically, let's say in India still today, it's close to 60% of India's consumption is imports there.
That is for EMS and semiconductor both?
Total. This is a total machine tool consumption today. Okay?
Right. Okay.
And so my second question is. And then right now, for the electronics and the semiconductor equipments are 100% being imported. There are no manufacturing in India there.
Okay. So we are the only manufacturers there?
Right now, many people are entering over here. We are the first entering over there, basically.
Okay. And so my second question is, you talked about the capacity that we have right now, 6,000 machines, and we are currently running at 90% utilization. While the additional.
Last question. Sorry. You finished your question. Yeah. Please, please.
Yeah. So yes. So while the additional capacity of 10,000 machines is supposed to come in two years, right? So given this capacity constraint that we have, how would you like to guide for the growth going forward? Is it the correct understanding that we might see a lower growth for the next two years before the new capacity comes in?
So let's say this capacity comes in a picture only on the last quarter. Okay? So last quarter of FY25. And this quarter only, we are able to clock this as a 90%. So overall capacity being utilized, okay, is 65%. Still, I have a room to grow up to 35% over here in this year.
Okay. Got it. Thank you, sir. Those are my questions.
Thank you. The next question is from the line of Mayank Chaturvedi from HSBC Mutual Fund. Please proceed.
Yeah. Hi, sir. Good evening.
Hi, Mayank.
So first, on the EMS revenues, this quarter, again, there has been zero revenue booking for the last two quarters. Also, sub-tier revenue execution has come in. So could you just throw some light on the slow execution on this order book, please?
So basically, our delivery been asked of this order book is starting from this financial year on the second half over here there. So it has not been asked because all the plant is under construction at customer site there. Okay? Once the plants are being ready, then we are coming to picture when we need to supply from our side there.
Okay. Is China still facing those machine issues from China or are things easing there?
Basically, in this area, we are also just entering. Until today, all the machines have come from Japan. Yeah.
Sir, on the CapEx side of this new 10,000 machines, it was earlier understood that it would come in by the end of FY26, but now it seems like it's being shifted to FY27. Is it because of the delay?
No, I'm not shifting. This is basically. I said a two-fiscal year. Okay? Two financial year. So this will be coming on FY27 in the beginning, maybe in June, will be ready there in 2026 there. Okay?
Okay. Sure. So, just.
We are not going further there. So this is just. I said two years because in my presentation, it was written two-fiscal year in the past also, so I'm continuing spelling out like this. Okay?
All right. All right. Got it. So just two quick questions. Can you just give us a break-up of this 1,349 machines that you've done entry-level, mid-level, and high-end machines, please?
One second, and the last quarter. Yeah. So in entry-level machines, we have done in terms of a value; it's INR 218 crores and 1,107 machines. On a mid-level, we have done INR 74 crores at 165 machines. And high-level is INR 252 crores and 77 machines. This is a combination of 1,349 in Q4, what you asked.
Got it. Okay. So it looks like the high-end-level machines realization has really fallen. Any comments on that? It's.
But you said?
INR 52 million. High-end-level machines, 77 machines at level INR 252 crores.
INR 252 crores. So basically, when we say. When we say that it's a high-end, means INR 2 crores and above and different model mix. Basically. Yeah. Okay.
Why is that? Because your aerospace and defense revenues has grown quarter on quarter. So I was of the opinion that maybe those are.
So the value is a per machine value is INR 3.27 crore.
Right. Right. Okay. All right. Yeah. Yeah. [crosstalk] . Okay. Got it. Got it. Last question from my end. We've seen other financial assets have grown significantly. Other financial assets. Can you tell us why? What's the component that's driving this increase?
So basically, there is a percentage of completion. See, these are the long, you know that all this aerospace and these large machines. The contract, the machine value is more than INR 20 crores and very long manufacturing cycle. Okay? So those are the machines that have been built up. Let's say we are starting the percentage completion methods, and that's why it's become a, it's going into a financial asset to be there.
Okay. Okay. So as contract assets.
So now we have, let's say we started 18 months back. So now it's completely piped has been full. So regularly, this kind of now dispatches happen there. Okay?
Okay. Sure. Yeah. Okay, sir. Thank you.
Thank you.
Thank you. The next question is from the line of Aniket Jain from YES Securities . Please proceed.
Hi, sir. Can you hear me?
Yes, Aniket.
Welcome, sir. Actually, I wanted to check that there's a lot of action going on in the defense industry. Are you seeing any increased inquiries?
Sorry to interrupt you, sir, Aniket. Could you please come closer to the device while asking a question?
Is it better now?
Yes.
Yeah.
So I wanted to check that there's a lot of increased traction in the defense industry currently. So are you seeing any increase in inquiries or any pipeline that you're expecting for the next year or a couple of years?
Oh, it's a huge pressure there. All our existing customers are pushing us like anything today. It's already started in Europe largely, in India, even now, China, so every area now, everybody is expanding their budget, and there are a lot of pressures on us to expand our capacity to deliver faster there, basically. We are working on that.
Would it be fine to assume that a lot of capacity utilization will happen in probably defense and followed by EMS once the EMS portfolio picks up?
Correct.
Okay, and the second one would be regarding the U.S. expansion plans. I remember that you mentioned opening a sales office there. So I wanted to check whether there's any impact of tariffs that might happen to your portfolio there.
No. Basically, the tariff is still an open area, and now we are going forward. We were just, let's say, in the last couple of months, we were waiting to clear it on that to go to U.S. to open our sales and network there. And if anything is, let's say, adverse, then we will go and start to have some manufacturing there also. But now, I think the things will be very soon be clear. There is no tariff effect much on our product over there, basically.
Okay. Okay. So your U.S. expansion plans particularly.
We are basically on a gain side. We are going to have a better. Right now, U.S. is importing in some other countries like Japan, Germany, Europe, and to China and all. These are the main suppliers. Against them, India is in a good position. Although there is not any adverse situation, we'll be on a better advantage situation to be there.
All right, sir. I'll be back to inform my side. Thank you so much, sir. Have a nice day.
Thank you. Thank you. The next question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please proceed.
Yes, sir. Thank you for the opportunity again. My question on these new product launches in F25, where we launched almost eight products. So can you talk about the potential market opportunity? And secondly, whether these products seem to be margin-accretive in nature because these are value-added products from the current portfolio. So can you talk about the profitability as well as the market size opportunity in the F26, F27?
Yeah. So basically, if you look at that, we have two products that we have developed on a 5-axis precision machining area, particularly a product called as a GU-8. The GU-8 and then another product called as a Tachyon Beta. Okay? On a similar product, the market size in the worldwide in EMS, aerospace, and particularly on healthcare industries, it's a very large opportunities are there. And India is also coming up more and more healthcare component manufacturing, all implants and everything. And worldwide, this product market size, okay, on a similar area and all, worldwide, it's close to $3.7 billion market size are there.
So we are expecting the participation to get the orders from there. And yes, this is our coming machine is to be on a mid- to high-end market, so we'll have a better margin over here, basically. Apart from there, there is one more product we have built. It's called as an alloy wheel turning machine. It's basically in automobile industries. And mainly, the EV sectors are coming. EV cars and everybody's are more and more. All the cars are moving towards alloy wheels. Until today, in India, all alloy wheels people are importing and now started manufacturing over here. So this is a product to our entry-level product baskets. And there, our margins are mid-range margins are there.
Then other product what we have built is called as a BTM and ATM and HMCs. This also is an automation product because today, more and more people are looking to be an automation in India. So this is also on a middle-range product. And we are expecting to be a margin to be improved over here there. Okay.
Okay. And the second question on the semiconductor foray. So what will be the capital allocation from Jyoti's balance sheet for this venture, initial capital commitment for this venture?
So right now, we are not reached to an infrastructure level. Today, we are designing the product. We are working with two or three manufacturers right now. Those are our potential clients. And we are developing equipment for them. And it's a very high precision manufacturing components and the assemblies are there. We will quantify this in the next couple of quarters. Let's say we are expecting to be in a third quarter. We are able to see the complete roadmap ahead on a semiconductor, how much the plant needs to be expanded and how much revenue can be generated. That will be clear-cut. Visibilities will come end of this financial year to us.
All right. Appreciate for the answer. Thank you.
Thank you.
Thank you. Before I take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Harshal Seth, an individual investor. Please proceed.
Hello. Hello?
Yeah, I'm here. Yeah.
Yeah. Hi. Hi. So firstly, congratulations on your great set of numbers. So just wanted to understand that the company is currently making somewhere around INR 16 crore of revenue, but it is still sitting on INR 800 crores worth of inventory. So could you just justify this because I guess there are too many different model sizes and variations in your product categories, but still the inventory level is pretty high? So just to understand.
So basically, I'd like to, let's say I'll tell you one thing. So it's a very good question, Harshal. Basically, in the early days, let's say in the, we have improved a lot on inventory days. Earlier on, let's say in FY24, our inventory days was close to 236 days over there, a nd that has come down to 180 days with this volume increase and the model mix improvements and all has happened.
And that's how we are able to sustainably improve from last year to this year. And in terms of the nature of that, we are fully a vertically integrated manufacturing company. And from castings to machining to assembly, sub-assembly, and for the entire value chain we are doing. And we have a 200-plus product variant. So that's how the inventory looks to be. You feel it is higher. But we are on a very good improvement stage from 234 days to 181 days today.
So going forward, do you see any improvement on the inventory days and that effect coming?
Yeah. So we are already. Yeah, we are working on that, a nd we are anticipating to touch. This is going to be around 150 days-160 days in the next coming year there. And that should be now the finest bottom-level situation there.
Okay. Okay. Thank you.
Thank you. The next question is from the line of Mayank Chaturvedi from HSBC Mutual Fund. Please proceed.
Okay. Yeah. Hi, sir. Thanks for the follow-up. So in the EMS space, again, some of our competitors are talking about introducing machines that are capable for customers in the space. Are you seeing any increased competitive intensity there, or do you see this competition emerging in that space?
See, Mayank, I myself am entering onto that and competing to a Japanese leader there. Okay. So it is called up business. If any competitors come today also, I will not be worried about it. I have to make worry to others first.
All right. All right, a nd recently, there was a press release by one of our customers' parents in Taiwan that one display module facility will be set up in the southern part of India. Any discussions going on there? Or is our product, Tachyon, can that be custom-made to cater to this plant that has been announced recently?
I'll tell you, I have a—Mayank, I'm not able to tell you the detail more because it's a very confidential agreement I have with them. But the mini project on a Tachyon, I'm working with many different applications on a similar product line there. And to be even for the modified machines, the different hybrid structure like 3D printing and machines together, and all kinds of combinations are going on. I'm not able to tell you much more about that because it's a very confidential parameter to be there.
No, sir. All right. I understand. That's hard to do. Thank you. Thank you for answering my questions.
Thank you. The next question is from the line of Vaibhav Shah from Nirmal Bang Institutional Equities . Please proceed.
Thank you very much for the opportunity, sir. Sir, my first question is related to Huron. So during the last call, you highlighted that there is new building construction or the de-bottlenecking activities going on. And all the approvals are expected during the May 25. So are we on track here, or is it fully operationalized now? And if yes, so what would be the total revenue potential here?
Yeah. So basically, in Huron, the building construction is over. The final installation is going on, the crane mounting and electrifications and everything is getting over in the next couple of days. I told you in the last call that we will get everything into May and June. And almost we are on a track onto that until today. Okay. And with this, our capacity will increase up to $80 million worth of production manufacturing there.
Okay. And sir, just one question about Huron. So what was the full year revenue and EBITDA for Huron? And what is the outstanding OB for Huron at FY25
? So basically, at Huron, we have close to 200 and let's do that. Net close to 65, not 75. 3. 253 crores of revenue and close to EUR 865,000. It means close to INR 8 crores as a PAT level there.
Understood. Understood, sir. Thank you very much, sir. Thank you.
Thank you. The next question is from the line of Deepesh from Invesco. Please proceed.
Yes . How are you?
Hi, Dipesh. How are you?
Very good. Sir, I just wanted to check. Last year, we spent around INR 310 crores, and we increased the capacity from 4,400 to 6,000 machines, right? So I just wanted to check, will 450 crores that you guided will be enough for 10,000 machines?
Yes. Because there are many things that are being mixed. Let's say while I'm making the expansion, so let's say in one building, there is a space like that on the last CapEx also there. So there is a synergy to be there, and it might be like this. It's not an absolute number there, okay? Or not to be, aap samajh sakte ho, I mean, I'm not sure. Understood. Yeah. Within the groundwork and basically. Assembly area. Let's say we build up an assembly area, but I cannot build an assembly area for just 100 or 200 machines. There will be large areas. So that is available there, basically.
Okay. Okay. And you said this machine.
So let's say you can see that from 6,000 to 16,000. So consolidated, we need 450 crores like that.
Okay. Okay. Okay. And you said that this capacity will come by June of next year, right? That is how it will look like.
Correct. Correct.
Okay. And will entire capacity come in one go, or will it be 5,000 plus 5,000, something like that?
No, it's in one go.
It's in one go only.
And yeah. Because there are very integrated assembly and manufacturing lines we are putting up there, particularly machining and all that. We are doing a lot of automations over there. So once it will be start, it will be start fully there, basically.
Okay. And sir, lastly, I think our order book has been very consistent for the last three quarters. An EMS order, I think, came in Q2, and we have not executed any of the orders in Q3 and Q4. I think our capacity got increased in third quarter only, right, towards the end. Why we are, yeah. Why we are not executing that order, and why not any new orders?
Basically, we are not. This execution has not been constrained about our capacity over here. Okay. At the receiving end of the customer, there are a lot of infrastructure development going on there. Once they will be getting ready, they will allow us to, let's say they will ask to deliver to them then after.
When do you think that they will be ready, sir?
I think this year, we are looking to be near to be in September, August, September.
Okay. Okay. All right. Understood, sir. Thank you so much.
Thank you. Ladies and gentlemen, we take that as the last question and would now like to hand the conference over to the management for closing comments.
Thank you very much to all of you. Thank you.
On behalf of Equirus Securities Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.