Ladies and gentlemen, good day and welcome to the Jyoti CNC Automation Limited 3Q FY 2025 Results Update Conference Call hosted by Equirus Securities. 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 a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshad Patel from Equirus Securities. Thank you and over to you, sir.
Hi, good afternoon everyone, and thank you very much for joining in. We have with us Mr. Parakramsinh Jadeja, Chairman and Managing Director of the company. Jadeja, sir, I would request you to give your opening remarks on the third quarter FY 2025 performance and your outlook. Over to you, sir, and then we'll take it up for Q&A.
Thank you, Harshad. Good evening, friends, and I would like to extend a warm welcome to each one of you who 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 pushed 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 the responsibility that comes with your investments, 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 three numbers. We have closed the consolidated revenue of 449.5 crores in quarter three FY 2025 as compared to 337 crores in quarter three FY 2024, delivering the growth of 19%. We have closed the consolidated EBITDA of 112.6 crores in Q3 FY 2025 as compared to that 96.3 crores in Q3 FY 2024, delivering a growth of 17%. The EBITDA margin is 25% in Q3 FY 2025 as compared to that close to 25% in Q3 FY 2024. We have maintained the same margin year on year. We have closed the consolidated PBT of 93.1 crores in Q3 FY 2025 as compared to 67.2 crores in Q3 FY 2024, delivering a growth of 39%.
We have closed the consolidated FET of INR 80.2 crores in Q3 FY 2025 as compared to that of INR 48 crores in Q3 FY 2024, delivering a robust growth of 67%. Our Q3 FY 2025 consolidated revenue is INR 449.5 crores, 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 of it. Our Q3 FY 2025 order index comes to INR 492 crores, which consists of 34% from aerospace, 25% of auto and auto components, 36% from general engineering, 1% from die and mould, and 4% of the rest of it. Our total consolidated order book as of 31st December 2024 stands at INR 4,360 crores. The industry segments split for the same as 41% from aerospace, 16% from auto and auto components, 18% from general engineering, 16% from EMS, 4% from die and mould, and 5% from others.
Now, let me take you through the consolidated nine-month performance of the company. In terms of revenue, we have closed the consolidated revenue of INR 1,242 crores in nine months FY 2025 as compared to the INR 888 crores in nine months FY 2024, delivering a growth of 40%. In terms of EBITDA, we have closed the consolidated EBITDA of INR 313 crores in nine months FY 2025 as compared to INR 167.1 crores in nine months FY 2024, delivering a growth of 88%. The EBITDA margin is 25.2% in nine months FY 2025 as compared to that 18.8% in nine months FY 2024. In terms of profit before tax at the PBT level, we have closed the consolidated PBT of INR 271.2 crores in nine months FY 2025 as compared to that INR 77.3 crores in nine months FY 2024, delivering a growth of 251%.
In terms of profit after tax, we have closed the consolidated PAT of INR 207 crores in nine months FY 2025 as compared to that of INR 51.2 crores in nine months FY 2024, delivering a growth of 304%. Our total consolidated revenue for nine months FY 2025 stands at INR 1,242 crores. The industry segments split for the same as 45% from aerospace, 24% from auto and auto components, 18% from general engineering, 7% from EMS, 1% from die and mould, and 5% rest of it. There are many people who have been joined over here that I'll make a very quickly Jyoti at a glance. The company is started in 1989. We have a subsidiary company called Huron Graffenstaden in France, Germany, Canada, and Turkey. Our total plant area is close to 253,000 sq m. We have two manufacturing facilities at Rajkot and one facility at Strasbourg, France.
We have more than 200 plus product variants and more than 130,000 plus machines installed across the globe. Today, our closing order book is close to INR 4,360 crores over here. Today, our plant installed capacity has reached 6,000 machines per annum in India and 120 machines per annum in France. In a key milestone in 2025, we have launched around seven new models in January 2025. The model called is a GU 8. This is a five-axis gantry-type machining center. AWP 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-performance series of a horizontal machining center. Tachyon Beta is one of the five-axis highest, the world's fastest machining center that we have developed, and this is a key milestone in 2025.
In terms of total employee count as reached to now at December 2024, it is to be 3,277, and we have added approximately 200 people in Q3 in line with our increased focus on execution. From April to 31st December, close to 390 people have been added on a Jyoti team over here there. The entire plant 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 sub-assembly, 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 at Strasbourg at all. In this journey, we have developed more than 200 plus product variants, and we have added seven in this year, in particular in our FY 2025 over here.
In terms of manufacturing capacity, we have close to 237,000 sq m in the industrial area at Rajkot. In phase one, we have 6,000 machines per annum as capacity has been installed, and we have furthermore three more phases we can do over here on the same facility. That much of phases are 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 at the border of France, Germany, and Switzerland, a place called Strasbourg, and exposed to the world-class manufacturing there. Basically, all the world machine tool builders are surrounding on a 200 km area there. Huron is a technology access for us to be the highest sophisticated five-axis technology product to be there. In our product basket, because of Huron, we are able to maintain all the aerospace and very high-precision manufacturing areas to be there.
Because of Huron and the Huron industry from 1857, so very renowned brand values, the caring and market approach and reach have been given across Europe, China, U.S., 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, two distributor dealers in India, and 11, let's say, the offices and all like that. Mostly Jyoti CNC sells products through its dealer network and directly to its customers there. In terms of a global customer base, wherever the manufacturing are there, the Huron and Jyoti have more than 130,000 plus machine installations across more than 60 countries to be there. In terms of industry segments, we are serving into aerospace, die and mold, automobile, electronics, railways, agriculture, infrastructure, oil and gas, healthcare, valves and pumps, power, and bearing industries like that.
Our product presence across the value chain, we have classified in terms of three categories. We call it entry-level products. We consider entry-level products as 0 to 50 lakhs is considered to be an entry-level product. Mid-range is 50 lakhs to 2 crores. High-end machines we consider 2 crores and above is considered to be a higher-end product. We have very marquee customers in terms of aerospace. We have HAL, Tata, Airbus, TAI, the GE, the Safran, the Boeing, Sikorsky, AVIC, Bharat Forge, and in automobile, all these Tata, Mahindra, BMW, Volvo, Mercedes-Benz, 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 for the seventh time from 2018 to 2024, and recognized as an iconic brand of India by ET, the Economic Times Edge, in this December. 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 sixth with $3.9 billion consumption and expected to be by 2030, India is expected to enter into the list of top three global consumers of machine-tools globally. 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 footprints, 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 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 in the 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 $1.3 trillion, and at the rate the CAGR is growing, almost expected to grow up to 2030 to 8.2%, and increasing aerospace spending globally due to a lot of geopolitical circumstances out there. So next, another five, six years, we are looking very much at the high potential growth we are seeing in the aerospace industry. In the EMS, the Indian EMS industry is expected to grow at an annual rate of 34% until FY 2027-28, reaching its targeted value of close to $54 billion today. Mobile phone exports from India during FY 2024 has reached to all-time high, close to $15 billion over here. The overall electronics exports jumped nearly 24% to close to $30 billion in FY 2024.
The potential of CNC machine demand in the EMS industry in India is over more than 1 lakh machines within a span of the next five years. In automobile, the global electric vehicles market is expected to grow at 17.8% CAGR during 2024 to 2030. The electric car market in India is expected to grow at 56% CAGR during 2024 to 2030. Global EV market size is expected to reach close to $600+ billion and will grow at close to 9.8% CAGR by 2028. Here, we have a very special product to fit into this all product range over there. And we are working and developing many products to manufacture those special components that are required among this industry. 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 2026-2027. Let's say the Tata Semiconductor Chip Fabrication Unit in Gujarat was approved, and with an outlay of nearly close to INR 500 billion rupees out there, and all of the products we are working towards to develop a new product basket to fit into use of semiconductor industries to be there. Strategies for the next leap, we have four main strategies out there. First is a people development because the most key challenge in going forward, what we have envisaged, that the people is a key of this industry. We need a very high quality and precision of people that are required over here, and for that, this is our first direction to move forward over there.
Product development is a key because we need to produce a variety range of machines to fit for our customers there. The third strategy is in market expansion. We need to reach out still to be some global areas like the USA and China is the biggest potential market available for us there, and last, a manufacturing capacity hands-on expansion based on the going forward. Every two 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 a center of excellence, and that has been set up over here in our facilities at Rajkot to embark the growth mindset, to foster technology and innovation, to ensure the quality, to enhance the productivity, to make Jyoti a great place to work.
With this motto of lead self, lead others, and lead the business. In terms of product development, recently, one of the most renowned exhibitions called IMTEX was 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 two years. Jyoti has participated with a booth size of close to 1,500 square meters and displaying close to 24 machines out here. The footfall for the IMTEX 2025 was historically high, with 133,000 business visitors from 70 countries, which might have generated the spot business worth more than INR 3,500 crore, and the business inquiries worth approximately close to INR 37,000 crore. Jyoti has also received a total of 3,000-plus machine inquiries on the spot over here on the next seven 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 mold, 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 is so solid and strong, and to overcome this, we are going to make close to additional 10,000 machines of capacity within the next two years over here. The new infrastructure of 6,000 machine plant capacity will come into a full utilization from quarter four of this. The new building at Huron at SO2 will be finished by end of 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 the 24 people at Huron level also. With this, 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.
Thank you, sir. Should we begin the question and answer session?
Yes.
Thank you.
Yes.
We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the 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 comes from the line of Akshay from AK Investments. Please go ahead.
Hello. Am I audible
Yes, sir. May I request you to use your handset, please?
Yeah. Hello.
Yes, sir. Please go ahead. We can hear you.
Yeah. Sir, just wanted to understand the quarterly numbers. So this quarter also, we have also the good growth, but if we compare the first two quarters of this fiscal year, then growth was even more compared to the quarter three year-on-year growth. So can we have some color on that front? And second, on the quarter four, how do you see the quarter four shaping up in terms of growth, year-on-year growth? I could not understand your first question. Sir, after the robust first two quarters, in the first quarter, we had year-on-year growth of 74%, and in the second quarter, we had 33% growth. But in this quarter, we have only 19% growth, year-on-year growth in the quarter three. So can you put some light on that and how is shaping up of quarter four is going to be?
Yeah. Thank you. I understood now. So basically, in quarter two and quarter three, we have, let's say, in the past call also, I told you that we have reached to some bottleneck area to be there in terms of the growth. And that's why we are with this removing this, and we have removed in September, we have put up all infrastructure into place over there on quarter two end. And this is, let's say, all the systems and procedures and everything is set right into this one quarter, and you will see all the additional facilities come in the future that you will see in the coming quarters to be there. So quarter two and quarter three, we were completely utilized almost our good level of capacity to be there. And our bottleneck was there.
It has been removed, but we have a long manufacturing process in all, so that we will see the colors in coming quarters to be there. And in terms of the quarter four, compared to this quarter three, you will, let's say, see a good growth to be there. Momentum has been maintained there.
Okay, sir. And sir, secondly, my question is on the order book front. So currently, we have the order book of around INR 4,300 crores. So what is the expected timeline to execute the same, and can we maintain the same current EBITDA margin of 25% in this order?
Yeah, so in terms of what orders we have in hand, okay, so based on that, definitely, we are able to maintain our margin level over here 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 two and a half 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 basically there. So today's run rate, this order book is close to two and a half years, but our customer expectation to deliver faster, then we are also enhancing our facilities, so we are also expecting to deliver much faster than that.
Okay, sir. Thank you for the answer.
Thank you. The next question comes from the line of Sandeep Jain from Baroda BNP Paribas Mutual Fund. Please go ahead.
Hi, sir. Thank you for taking my question. A 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?
Yes.
Okay. Any specific reason or are we expecting further order from here kind of?
Yeah, so basically, let's say the last quarter, we got a big order and all, and today, our order book has reached ₹200 crore there. Okay? It's less than two and a half years delivery time today. Okay?
Okay.
Once the light will come off, our manufacturing capacity will increase.
Okay.
And our customers also will feel that we have enough capacity in place. We will see the furthermore orders on the EMS sector.
Okay. The INR 525 crore order which we have got in quarter two, the execution timeline for that is 2-2.5 years kind of?
No, that is, we have to the expectation is to this entire order book order we have to release before, let's say, December, and the last quarter of third and fourth quarter we are booking in this.
Okay. And then only you will get the new order. That is the correct reading?
It's not like that, but let's say, our capacity in line ho jayegi, there will be some more orders we will provide.
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 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 [Foreign language] 43, 4400 crores [foreign language ] overseas orders [foreign language] domestic [foreign language] , sir?
Yeah. So basically, [foreign language ] aerospace [foreign language] order book है, that mainly is come from Huron basically.
Okay. INR 1,800 crores.
Yeah, yeah. So that's it in France, we have one of the best order book situations today there. Okay? Today, we are facing only one challenge over there. It's really we are slumping on a capacity side there. Okay? The full floor is jammed there because we have all these manufacturing, you know that these machines are very high-value machines. Each machine is more than INR 10 crore worth like that and occupying more space out there. And our infrastructure is still, let's say, is under enhancement there. Once that will be in place, the Huron, we will see the much bigger growth in the next coming after two to three quarters there.
Okay. So in this quarter, if I look at means.
We have parallelly, we have in my speech, I covered that we have added almost 24 people. Okay?
Okay.
Because parallelly, we need people also. So there's all people also is under training and everything has been done now. So almost 15% of the people also have been added on there. And we're still putting up the people parallel to our infrastructure to be there.
The growth in the revenue is 19% for this quarter only, year-on-year growth, but aerospace and defense is contributing around INR 220 crore. So where is the kind of, I mean, I feel that it is below our guidance kind of thing, whether this will bunch up in quarter four or what we can understand about it?
In terms of aerospace and the execution of aerospace, okay, if you look at that, in this quarter, it's close to 49% execution. Okay? In the aerospace industry.
Correct. Correct.
Okay? And that is compared to quarter three. Quarter three was 38%, so it improved a lot there. Yeah.
No, so the revenue growth guidance of what will be the revenue growth guidance for the full year then? I mean, are we on track to achieve 2,000 crore of revenue?
Based on, let's say, we have not made any guidance like that over here in the 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.
Okay, and the miss in this quarter is largely due to?
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 was here.
Okay. Fine. Thank you.
Thank you. The next question comes from the line of Swanand Samant from Klay Capital. Please go ahead.
Hey. Hi, sir. Congrats on the quick checkup 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 2,000 plus crores, and at that point of time, we guided that this is executable over a period of one and a half years. So if I back calculate it, our revenue run rate should have been somewhere about 550 crores, which has not been the case for the past three quarters. So just wanted to understand, you said that one of the bottlenecks was the capacity, but does that guidance still kind of hold to be kind of 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 somewhere about INR 550 crore in the nine months in terms of order inflows. But if I remember, we were guiding about INR 1,500 crore of order inflows at the start of the year. So just wanted to get a sense from you what's happening there, why are we kind of have underperformed on that? And secondly, the mix of the order books, a related question to that, the mix of the 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 start executing this INR 4,000 crore of order book, do we expect that the margin next year could or could be slightly lower than financial year 2025? Yeah. Those are my questions. Thanks.
Yeah. So there are many questions in queue there. Okay. I think I want your question. Okay. So let me start with the first. Regarding capacity, okay, let's say today also, I mentioned in my previous answer that today, based on this INR 4,360 crores of the order book, in terms of today's run rate, let's say it will take two and a half years. Okay? And we are fully committed to our customers to where we're at. Their expectation also is to be within 18-20 months like that. So we are increasing our capacity. The first benchmark we have finished on September, the things are in place into a ground reality. We will see this in the coming quarter to see the numbers there. Parallelly, we have started to expand furthermore there to overcome over here. And that's now the story behind that.
We are also aggressively behind that on our capacity because today the capacity concern is only a blocker for us to increase our run rate over here. Okay? 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 all are very high-precision assemblies and all like that. We have added 400 people over nine months. We have trained them. They put on to that. And manpower is more on my list. So we all are trying to fulfill our quality commitment to our customers and to reach their delivery 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 to two and a half months out there.
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, many inquiries are online there on our future of this next to be there. Okay? I think this is your two. What is your further third and fourth question on that? Can you remember me that?
Yeah. Yeah. So starting again on the margin side, the aerospace and defense, if I'm not wrong, has the highest margins for us. So on the closing order book basis, that has gone down to 40% versus a nine-month run rate is about 45% plus. So do we expect some kind of moderation in margins for next year as compared to this year?
No. In terms of today's closing order book, okay, our order book still in aerospace is close to 40% plus there. Revenue side. Okay? In terms of the closing order book composition, it still is in aerospace as a 41% there. The combination of these two. We don't see any. This is not only the value is not defined only the aerospace. Even in the general engineering and all, I said that our business model divided into three categories: entry-level product, mid-range machine, and high-end machine. Okay? So mid-range and high-end also, in general engineering and all, this is increasing. Okay? Even this quarter, we have seen a 36% over there. So we don't foresee in the next two years any challenges in terms of a margin area to be there.
Okay. Got it. And 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 is it coming and how quickly can we ramp it up?
So basically, we have enhanced the full capacity with 10,000 machines, but partially, we are expecting to first support will come in terms of half the capacity or, let's say, 3,000-4,000 further machines in this third quarter of this financial year, FY 2026 there.
Okay. Okay. So for the next year also, we would be at the same capacity is what you're saying?
Close to only on a third quarter, we'll see there's some more light on this 10,000 machine extra capacity will come in the picture. So out of that, close to 3,000, 4,000 machines, partially, we are able to see the capacity support will come on a December quarter.
Okay. Got it. Thanks.
Thank you. The next question comes from the line of Swarnaditya from Unicorn Asset Management. Please go ahead.
Hi, sir. Welcome back to Gujarat. Two questions. First is on.
Sir, may I request should you use your handset, please? So you're not on.
Yeah. Yeah. Is it better now?
Yes, sir. Better. Thank you.
Yeah. Hi. Good evening and good day from Mumbai. So my first question, sir, is on the execution side. So can you highlight the number of machines that we delivered this quarter?
Yeah. Yes.
Yeah. So, a number of machines this quarter we have delivered is 894 machines, with the highest ever value average has reached 50.27 there.
Yes. Understood. So this is likely because of the mix from aerospace and defense being higher this quarter, right?
Correct. Correct. Correct.
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?
So, based on the order book, I think we will go near in between around INR 45-INR 50 lakhs of a range to be there, average machine line.
Okay. When do you think the execution from the EMS will push in?
See, the parallel EMS, the number will increase, but parallelly, we are adding capacity in aerospace also. So it will go hand in hand. So we are expecting to, in this entire order book, will the average range to be in every quarter will be in between 45, near 45 to 50 only.
No. I was explicitly interested in asking into that. Is there any slowdown in the demand from the EMS, or what are we hearing from the customer?
Not at all. Not at all there. In fact, we are now expecting more capacity to come much faster so we can participate in a bigger way there.
Great. And, sir, on the new capacity addition, so what's the status? What have we tried this quarter? Where are we?
So basically, all the construction of the building is going on. The machine shop building is already, let's say, it is going to be completed the first day in this 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 going to start to be on a first quarter. It will reach to us already.
Is this facility in Rajkot near our existing or somewhere?
On the existing building only. Yeah. We have an existing. Let's say we have a large extra land was available. So phase one was 6,000 sq m, and second phase, we are doing close to 10,000. Everything is on the same plot there.
Okay. And the images you have shared in the presentation are from the new building, or they are all from the old capacity?
No, no. These are the new building is under construction now.
Okay. Could you highlight which one among the, I guess, on the page number 35, there are four images?
One second. Yeah. So what you are seeing in a newly developed assembly line, okay, on a page number 35, okay, that is the part has been constructed in September, okay, and that is already been put to use there. Okay?
Okay.
In the left side, what you see, the green is not today the green now. Okay? This new building is almost about to finish there now. What I said, that will be ready in March and April there. Okay?
Okay.
Similar layout will be the next left side. On the same picture, there is the left side. This building is almost now on the final stage to be there. Almost a double building has been ready there.
Okay.
Yeah. And in terms of assembly, what you see there in a picture near the bottom is intended to be a new sub-assembly under construction. Okay?
Mm-hmm.
That was the part of our first bottleneck removal. That has been over, and that is put to use there now. Okay? You see the newly developed assembly line. Okay?
Mm-hmm.
In the left side, it's not in full picture there. There's another assembly line under construction. That will be finished in somewhere in September.
Okay. Great, sir. Just one input on this. It would be great if we can highlight these things on our social media handles across platforms. Timely updates would be really helpful.
Excellent. We'll do that. And I invite you to visit our plant also. Then only you can verify that very well there. You are most welcome.
Sure. Thank you. Thank you.
Thank you. The next question comes from the line of Kushal Mondal with YES Securities Private Limited. Please go ahead.
Hello, sir. Am I audible?
Sir, may I request you to use your handset? So you're not audible, sir.
Am I audible now?
Hello?
Hello. Am I audible now?
Yes, sir. Please go ahead.
So what is the current capacity utilization of Huron, and how many machines were sold in this quarter?
So in terms of Huron, where this our capacity is close to this year is EUR 35-40 million to be executable there. Okay? It means EUR 7-8 million euro is an 8 million on it, 8-9 million on it per quarter like that. Okay? And we are running right now more than 80% capacity there.
What is the number of machines sold in this quarter?
One second. Huron number. We have made close to 17 machines to be there.
Okay, and the 10,000 additional capacity will come till December 2026. So, what will be the utilization level for the additional capacity for the full fiscal?
So let's say this until today, we have made close to 2,800 machines in three quarters.
Okay?
Particularly 2,723. And we will touch close to 4,000 and 4,500 in between in this year.
Okay.
FY 2025. And FY 2026, your question is FY 2026. FY 2026 numbers will see how the capacity utilization capacity will be ready and utilization will come.
Okay. And you have said that 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 1,600 crore of sales. So now currently, the PAC margin is at 15%-18%, which means that you will make around 240 crores of profit from the additional capacity, that is 1,600 crore of sales, which makes that on 400 crore of CapEx, you are making 240 crores, which means a ROCE of 60%. So can you?
So yes. We are going to do the INR 400 crores of the CapEx. And based on this CapEx, the capacity will reach out to be 16,000 machines there, total. Okay? It means additional 10,000 capacity will be there. And based on that, all your questions are given answer in real time to you. It is absolutely right there.
So you are going to make around 60% of ROCE, right?
In terms of a particular, if you calculate it, add-on value, it's right there..
Okay.
But if you make total, it will not come to be ROCE level like this.
Calculated the add-on value, let's say for the 10,000-ton Tata's plant, the investment, because this is an incremental investment there. Like on INR 400 crore of CAPEX, the ATR you said that it will be 4x, means INR 1,600 crore of sales. What will be the timeline for this sales revenue number?
So that's what I told you. So once the, let's say, the capacity comes into the picture, and all I told you in part also that entire 16,000 capacity will be utilized in three years.
Okay, sir. Thank you, sir.
Thank you. The next question comes from the line of Harshit from Green Portfolio. Please go ahead. Harshit, your line has been unmuted. Please go ahead with your question. Hello, Mr. Harshit. 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.
Yeah. Thanks for the opportunity, and, sir, just congratulations on one of the best exhibitions we had from the Indian company in IMTEX, so very well managed and a lot of maturity there. Yeah, I have been there, sir.
Oh, thank you. Thank you very much.
Sir, just based on your guidance, so it suggests that in last quarter, Q4, we would be doing roughly around 70-odd% growth year over year in terms of machines sold, which would be around 1,500 plus, and 54% quarter-over-quarter, 54 to 55% quarter-over-quarter growth.
That's the target we are running today.
Okay. Okay, and sir, just more on the competition side, because we have been hearing all your competitors have become much more aggressive seeing the growth in India, and particularly in the CNC. So how are we seeing the competition, and how we are in terms of pricing as compared to, say, FANUC or any other counterpart, particularly on the pricing side?
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. Okay? Anyhow, there is a 60% still the machines are coming from abroad there, particularly companies like FANUC and everyone like that. Okay? And most of the supplies are coming from Japan, Germany, Europe, U.S., and all these areas, Taiwan, and particularly Korea also there. Again, these are all the competitors. The way Jyoti has been positioned in terms of our plant capacity, the capacity installations, and like that, we are one of the most competitive manufacturing landscapes. You yourself have visited, and you have seen our facility, how competitive, and still we are making this factory is one of the world-class factories to be here there.
I think we are very much prepared to compete with all the brands already there 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 our Indians are talking to be like this. Now, and if you have visited there in exhibition, so you have seen that, we have overcrossed these boundaries now.
Now we have made this machine, what we say this Tachyon Beta, is twice faster than the FANUC Robot is there. Okay? And many, many other Japanese machine tool builders there. So we have leapfrogged. We have gone ahead there in terms of the technology demonstration also to be there. So we are fully equipped for this competition in terms of the technology, in terms of the execution, and cost competitiveness.
Sir, secondly, on your operation side in the EMS division, like I said, there have been a lot of media reports that delivery of Chinese labor or the Chinese machinery that has been getting delayed over the last six months, nine 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?
No, we have not seen any disturbances like that. Okay? Because these are the still there are all the we have just everything is looking from the media and all. If these kind of things will happen in future, I think that will be a great opportunity for all Indian machine tool builders to make similar products if the machines are not coming from China and they are not allowing their people to here. So the space is open for us there.
Lastly, sir, will you please give the breakup between entry-level, mid-level, and high-end machines?
Kamlesh bhai, your voice is very.
Audio is not clear, so maybe request you to use your handset.
Can you please provide the breakup between entry-level, mid-level, and high-level machines, sir?
One second. So quarter three. Yeah. So basically, quarter three, the number of machines in entry-level was 817. The mid-level machine was close to a 22, and high-end machine was close to a 55.
Thanks a lot, sir. Thanks a lot. I wish you all the best.
Thank you. Thank you. The next question comes from the line of Partha Mazumdar from Eastern Financiers Limited. Please go ahead.
Yeah. Hello, sir. Am I audible?
Yes.
Yeah. I just needed to know, I mean, in aerospace and what are areas that machines are actually fabricated using our CNC machines? What are parts that are actually manufactured in aerospace?
Bigger part, and please verify. Tell me your question clearly.
Yeah. In aerospace, I mean, our CNC machines are deployed in which parts are actually manufactured using our CNC machines in aerospace?
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.
Okay. So for instance, if I want to know, are these into engine parts or?
Yeah. Engine parts.
Engine parts, right, sir?
Yeah. The maximum machines are going into engine parts there.
Okay. Yeah.
Even structural, we have a product that's going into structural machining also.
Okay. 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?
Azad is a prime customer. This year also, we have supplied many machines, and they are expanding their capacity further, and we are supplying all the machines from Jyoti here.
Okay. Yeah. Sure. Thank you. Thank you, sir. That will be it, sir.
Thank you. The next question comes from the line of Kushant Arora from Baroda BNP Paribas Asset Management. Please go ahead.
Yeah. Hi, sir. 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-month basis and for this quarter?
So, Huron. Let's say one second. Huron has done, let's say, close to 200 crores of revenue in these nine months. Okay? And for this quarter, it was close to 65 crores.
65 crores. And what would be the EBITDA contribution for these?
So great. So EBITDA in Huron is reached to a 15.75%.
All right. All right. It's on nine-month basis.
In nine-month basis. In the past, last year, nine-month basis, it was a loss.
Right. Okay. Okay. Thank you. Thank you.
It's a substantial improvement that has been seen in Huron level there.
Understood, sir. Thank you.
Okay. Thank you. Ladies and gentlemen, that is the last question for the day. I now hand the conference over to the management for closing comments.
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'm inviting all of you to visit our plant and to be a presence over here. Thank you very much.
Thank you. On behalf of Equiris Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.