Ladies and gentlemen, we welcome you all to the Q2 and H1 FY 2027 earnings conference call of Jyoti CNC Automation Limited, hosted by Elara Capital. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinion, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company and may 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 is being recorded. I now hand the conference over to Mr. Nemish Sundar from Elara. Thank you, and over to you, sir.
Thank you. Good evening, everyone. On behalf of Elara Capital, I—
Sorry to interrupt, Mr. Nemish Sundar, your audio is breaking up.
Yeah. Is it clear now?
Yes, sir. Please go ahead.
I welcome you all to the Q2 and H1 FY 2027 earnings conference call of Jyoti CNC Automation Limited. We are pleased to have with us the management team represented by Mr. Parakramsinh Jadeja, Chairman and Managing Director, and the senior management team for Jyoti CNC Automation Limited. We will now have the opening remarks from the management, followed by a question-and-answer session. Thank you, and over to you, sir.
Thank you, Nemish. Good evening, everyone, and a very warm welcome to our Q2 and H1 FY 2027 earning conference call. Along with me, I have a senior management team and SGA, our investor relation advisor. Results and presentation have been uploaded on the stock exchanges. I hope everyone has had a chance to go through the same. I will begin my opening remarks with an overview of economy, followed by industry and company's operational and financial performance. The global economy continues to face a challenging environment, with the ongoing conflict in the Middle East adding to uncertainty. The conflict has lead to higher energy and commodity prices, disruption in shipping routes and supply chains, and increased freight and logistic cost. These factors are adding the inflationary pressure and waging on global growth.
India has also felt the impact of this development, particularly through higher energy cost, rising raw materials prices, and increased freight costs for manufacturers. However, India's economy continues to remain strong, supported by domestic demand and growing focus on manufacturing. In this environment, building a strong and reliable manufacturing base in India has become increasingly important. While India has traditionally been known for its service sectors, manufacturing is now emerging as a key driver of economic growth, job creation, and India's position in global markets. The government of India continues to support this journey through initiatives such as Make in India, the PLI scheme, and several sector-specific programs covering electronics, semiconductors, defense, and aerospace. One of the initiative is the ECMS scheme, which aims to strengthen the domestic manufacturing in electronic sector.
I am proud to share that Jyoti CNC has also received a capital subsidy under this scheme, and I will share more detail during the call. As India moves forward towards building a stronger manufacturing ecosystem, one area that deserves special attention is the manufacturing of machine tools, often referred to as mother machines. These machines form the backbone of manufacturing and are used across sectors, including automotive, defense, aerospace, railways, and electronics. Despite the large domestic opportunity, around 60% of India's CNC machine demands is currently met through imports, largely from Japan, Europe, and South Korea. Given the critical role this machine plays in both commercial and defense manufacturing, reducing import dependence and building domestic capabilities is important for India's long-term manufacturing security. This presents a significant opportunity for Indian manufacturers to develop high-quality, technologically advanced machines locally and support the country's journey towards greater self-reliance.
At Jyoti CNC, we are well-positioned to participate in this opportunity. We are among India's leading CNC machine manufacturers with backward integrated manufacturing capabilities. That gives us greater control over our value chain. Over the years, we have built a strong customer base with more than 40,000+ machines installed across sectors such as automotive, railways, and defense, along with sectors such as Electronics and Manufacturing. Our technology and product capabilities enable us to compete with leading global players, while our strong domestic presence gives us a good understanding of customer needs. With India's manufacturing sector entering an important phase of growth, we believe we are well-placed to benefit from the rising demand from advanced manufacturing solutions and contribute meaningfully to India's journey towards self-reliance. Let me now give you a quick update on our business.
During the quarter, we dispatched approximately 1,900 machines, marking the highest quarterly dispatches in the history of the company's operations. This is on the back of additional 10,000 machines which we put to use during this quarter. Our foundry operations will commence operations in the coming days. As we continue to improve capacity utilization and ramp up production, we expect our volumes to grow further going forward. Speaking of our order book, we recorded a robust order book intake of INR 800 crores during the quarter, taking our total order book to INR 5,082 crores as of September 30th, 2026. This order book is on the back of a strong demand from the auto sector, where OEMs are adding more capabilities, more capacities, particularly in the EV space. Overall, the order book provides us with strong revenue visibility for the coming quarters.
With additional capacity coming on stream, we are well-positioned to convert this demand into sustained growth. On the Huron front, we had added a new manufacturing capacity in November 2025. Dispatches from this expanded capacity are expected to commence during the third and fourth quarter of FY 2027, providing an additional contribution to our growth in the second half of the year. On the product development front, we recently developed the MTX 100, a compact five-axis multitasking turn-mill center. The machine combines turning, milling, gear cutting, and grinding operation in a single setup, enabling customers to improve productivity, enhance machining accuracy, and optimize floor space. It is designed to cater to industries such as aerospace, defense, automotive, EV, and oil and gas, where demand for complex, high-precision components continues to grow.
These developments reflect our continued focus on strengthening our R&D capabilities and expanding our product portfolio in line with evolving customer requirements across domestic and international markets. Lastly, I am also pleased to share an important development under the government's Production Linked Incentive, so-called PLI scheme, for domestic manufacturing. Jyoti CNC has received approval for a capital investment of over INR 1,020 crores over the next five years, which is a capital incentive of 25%.
Through this initiative, we aim to develop in-house manufacturing capabilities for key components such as CNC controllers, motors, drives, and operator interfaces. This will help reduce our dependence on imports, strengthen our backward integration, and further reinforce our commitment to the government Make in India vision. Now, coming to the financial and operational performance. Standalone performance, quarter two FY 2027 revenues witnessed robust growth of 31% to INR 588 crores compared to the same period last year.
On the profitability front as well, Q2 FY 2027 EBITDA stood at INR 164 crores compared to the INR 111 crores in Q2 FY 2026, with margin of 28%, an increase of 320 basis points. Quarter two PAT stood at INR 115 crores, growing by 46% over same period previous year, with margin standing at 19.6%. Speaking of consolidated performance, revenue for Q2 FY 2027 stood at INR 602 crores compared to INR 508 crores in Q2 FY 2026, a growth of 18.5%. On a profitability front, Q2 FY 2027 EBITDA stood at INR 131 crores compared to INR 125 crores, with margin standing at 21.8%. Q2 PAT stood at INR 73 crores, with margin standing at 12%. For Q2 FY 2027, our revenue continues to be diversified across end-user industries, reflecting the strength of our business model during the quarter.
21% of our revenue came from Aerospace and Defense, 36% from Automotive and Auto Components, 28% from General Engineering, 7% from Electronics and Manufacturing services, 1% from Die and Moulds. The balance 7% came from other industries. Moving to our order book, we continue to maintain a healthy and diversified order pipeline. As of today, our order book stands at INR 5,082 crores, providing good revenue visibility for the coming quarters. The industries-wise order book comprises 36% of Aerospace and Defense, 22% from Automotive and Auto Components, 21% from General Engineering, 12% from electronics manufacturing services, and 4% from Die and Moulds, with the balance coming from the other sectors. For a detailed update on order inflow during the quarter, you can refer to investors' presentations. On machine sales front, we sold 1,911 machines during Q2 FY 2027 compared to 1,315 machines in Q2 FY 2026.
The product mix was as follows: entry-level machines sales stood at INR 1,802 crores compared to INR 1,237 last year. Mid-range machine sales stood at 98 compared to 69 last year. High-end machine sales stood at 11 compared to nine last year. Overall demand continue to remain encouraging across the key sectors, while our capacity expansion will further strengthen our ability to capitalize on opportunities ahead. To conclude, we have delivered a strong performance in Q2 and H1 FY 2027, supported by healthy demand across key sectors and continued progress in our business operations.
Our focus on strengthening manufacturing capabilities, advancing technology through our partnership with Huron, and supporting India's growing manufacturing ecosystem continue to drive our growth journey. With a healthy order book and disciplined approach to investments, we remain focused on sustaining our growth momentum in the coming quarters. With that, I would now like to open the floor for question-and-answer.
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 the touchtone 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 Harshit Patel from Equirus Securities. Please go ahead.
Thank you very much for the opportunity, sir. My first question is on our order intake. I think we have already clocked more than INR 14 billion in the first half of FY 2027 against the full-year guidance of INR 25 billion -INR 30 billion. Do you think that we will be able to exceed this run rate, given that our new capacities have also been commissioned and we will be able to take more orders? I think we were holding back ourselves from taking more orders while the capacity was being commissioned. Also, could you share how the pipeline looks for the second half of FY 2027 in terms of order intake?
Thank you, Harshit. You are right. Already, we have been clocked against the guidance is little bit higher. Always our second quarter and third quarter is intake month basically, all the time. Is the place the orders there. Still, let's say every sector, the pipeline is very healthy. Particularly in Aerospace and Defense, we are expecting further more orders in this quarter and coming quarters on a healthy numbers over there. Yeah.
Understood. Yes. Understood. Sir, my second question is on our interest cost. I think they fell to about INR 14 crore from a very high number in the last quarter. This is despite our net debt has actually grown in the first six months of FY 2027. I just wanted to reconfirm with you, we are fully expensing our interest cost, right, and not capitalizing that?
So basically, this is a operational, let's say the utilization and all, on a working capital and everything, is a reduction of our there interest cost there.
Understood, sir. Sir, yes, lastly, on Huron, I think Huron has reported a revenue of about INR 44 crore in this quarter, with a net profit being about INR 43 crore.
Correct.
Probably still maintain the senior guidance of about INR 300 crore -INR 325 crore of revenue at Huron, with about 5%-10% EBITDA margin.
Correct. We are still, Harshit, we are on the same level. We are looking to be a quarter three and quarter four. We are very progressed in terms of is all end-user certificates and all. Very positive signals has come from the government authority over there. I am very happy to share with you, one or two machines, the last quarter, last week, they already given a permissions to us also. With that, third and fourth quarter, we are seeing a good visibility is on a ramp up on a revenue. Definitely, we are on a track to reach out to close to a INR 300 crore of a targets to be there.
Understood, sir. Perfect. Thank you very much for answering my questions and all the very best. I will come back in the queue.
Thank you. Thank you, Harshit.
Thank you very much. The next question is from the line of Bajrang Bafna from Sunidhi Securities. Please go ahead.
Congratulations for a strong set of numbers, sir. My first question pertains to again a bit of Huron that you have already indicated that some approvals have already started coming in for the licenses, so we are in a position to dispatch machines in this quarter. Broadly, sir, if we see INR 300 crore guidance, can we expect at least INR 80 crore or maybe INR 100 odd crores of dispatches in Q3 to begin with, then probably a little bit ramp up in Q4? Is that a right understanding?
Yeah, that's a clear right understanding.
Sir, if we see in the first half, the console margins are closer to 22 odd percentage right now, and we have initially guided will be closer to 25% odd margins. Can we expect now the second half where your additional capacities are going to be there? So the range, the overall guidance of 24% or maybe 25 odd percentage of EBITDA margin, can we are in a position to achieve that once the ramp up at Huron happens in this?
Yeah, we are very much confident. If you look at that in a domestic front, we are doing extremely good. With this second half always to be a much better half from the H1. So with this, all the situation, we are very much confident to reach to a 25% margin, what we have guided to market, and we are about to maintaining those things.
And sir, if my understanding is right, despite your most of the sales that has come from entry-level machines, which you have already indicated in your opening remarks in Q2, where almost 1,800 odd machines are the entry-level machines, where margins are little lower as compared to your high-end machines, which goes to Defense and Aerospace segment. Despite that, you have been able to clock in 28% standard on margin. Once the ramp up of these high-end machines happens in Q3 and Q4, because they are predominantly heavy in terms of Defense and Aerospace side. There is a scope to further improvise the overall margin performance. Is that understanding is right?
Yeah, you are right. I was always telling to you people in your past questions and in a meeting, that let's say once this our entry-level product number is also going to increase, our business model combination is such that we will not go below 25% of margin there. Until what the order book can pipe with me, I know the completely composition on the order book and what we are going to execute those things. We are very much confident on two. In a Q2, let's say in a H2, even the number of machines are going to increase furthermore because our capacity is now being put to use. That's how we are looking to be a better growth coming in the next two quarters there.
And sir, if everything goes right, because now you are working more towards the development and the R&D side. The lever of this R&D expenses, because as you move into next two, three, four years view, you are anyway going towards mechatronics and then probably robotic side, where lot of sort of investments will also be required to develop these high-end products. In that case, the lever will be your additional margins will be a lever where you can put in these investments. This, despite having high R&D expenses, and your margins that you are guiding 25%, you can use that lever to maintain the margins. Is that is something that we can hope for, or there is a further room to show higher margins in the coming years?
Because that's a broad understanding, because the additional investments that you will require to put in for developing high-end products, whether they are in mechatronics or they are specifically the robotic side. Is that something that the lever that you will use the additional profitability to fund your additional investments in the R&D side? The margins will be maintained in this 25% old range? Because that we need to have some sort of understanding that your additional investments will also, additional profitability will go into funding your additional requirements on the R&D side. Is that the broader understanding in your mind also to—
Let me, Bajrangji, let me clear the strategy. You are right. Your thinking is absolutely on a right direction. Basically, in the next two to three years, we are developing all our electronics, that is a side. Our original task is the strategy is that, in the next two years, we would like to be a Jyoti, to be a mechatronics company. Today, we are a mechanical company. We design the machine, we manufacture the machine, we castings, we machining the precision component, and we integrate. In future, we are looking to be a mechatronics company. Basically, definitely yes, we are going to invest whatever the benefits we are going to improve in a margin, we are going to invest into R&D there. That will allow us to a further growth there. After the mechatronics, in future, we will enter first into industrial automation.
Industrial automation is the robotics is the first priority for us there, basically. These are the multiple vertical we are working and we are going to work over there. Second part, definitely we are looking still to be a little bit margin improvement over there because of a cost. One, this is to be manufactured vertically integrated over here. The cost advantage will come. Today, by the way, I will just give you the input that, we have been put up almost in this last six months, we have close to 950 people and been add on. This revenue still is going to come. Costs are being booked. These all operational leverage also we will see in the coming days, and that we will utilize into R&D also to be there.
Got it. Got it. And sir, on this INR 1,000 crore investment that you are going to do over next four, five years, where these all controllers and these drivers are going to be developed, you have already got closer to 25% central subsidy. Can we expect similar subsidy from the state government since you have applied for that?
Yeah. Already, thank you. Basically, I stated into my opening remarks that, we got 25%, almost INR 255 crore subsidy from the central government. Gujarat government is, as a state government is a matching grant. Is almost equal to a little bit something more because there is some R&D subsidy also is going to be kick on. With that, we are expecting very soon, this sanction will come and we will close to 50%+ to the subsidy we will have out of INR 1,020 crore there.
Great. Thank you. Thank you very much, sir. All the best.
Thank you. Thank you. Thank you very much.
Thank you very much. The next question is from the line of Raj Shah from Enam AMC. Please go ahead.
Yes, sir. Thank you very much, sir, for the opportunity. My first question is regarding the order inflow. As you mentioned in your opening remarks as well, almost more than 50% of the orders that we received in this quarter was from the auto sector. If you can throw some light on where are these orders coming from, how has been the demand, and is this sustainable going forward as well?
Thank you, Raj. Basically, I always telling to, in my call in past also to you also, Jyoti CNC, we have a more than 15,000+ customer base now. Okay?
In the entire manufacturing ecosystem of a country. Today, we are serving almost all manufacturing areas. Okay? And particularly where I'm sitting, I like to share with you that, in a Rajkot, a standalone we are looking, this year we will be crossing more than 2,000 machine only from my town. And these are all Tier 1, Tier 2, Tier 3 supplier for Auto, General Engineering, all these areas. And every area, like Punjab is growing today, in a Kolhapur belt is growing.
Even now the eastern belt, okay? There also we are receiving the good numbers of and all. I think, momentum, what the way we are seeing the investments are coming and pipelines are what we are seeing today. We are very much confident in the next three years, we are clearly visibilities are there. In fact, still there is a great opportunity. Our 62% is still is import there. Okay?
Okay.
Our focus area is to improve the execution more and more. Okay? Front end business side, there is no challenge. We are not going to see that coming two to three years there.
Got it. Sir, now since our capacity will be with foundry coming up in this quarter, can we see the ramp-up in execution of the EMS orders in the order book, which has not been moving because of capacity constraints?
See, particularly this, even if you see that the step put to use, we 1,500 capacity and we have executed 1,900. It means the new capacity is already into consideration there. Even in the EMS, now we have in this quarter, it is almost, you can see there is the execution also has been improved there. We are expecting furthermore improvement will come in the next two quarters there. You are right there.
Got it. Sir, second question was on the working capital front. We can see inventory days have increased, we understand, in this quarter because your capacity is still coming up and because of supply chain restrictions, and also there are many components which has a very long lead time. But going forward, do you see that this coming down to, say, below 200 or close to 200 levels, that you have been talking about in the past?
Thank you, Raj. Basically, Raj, in fact, inventories days, if you look at that, the one, let's say, total year, these targets, and we are reaching out there. At six months today, in fact, from 203 days at March level, and if I look at that, our the next coming six month, the projections what we are seeing. So already today, we are at inventory days has been improved. Basically, we are at close to 190 days. End of the year, we are looking to further lesser than this, basically.
Got it. Finally, sir, last question. What will be the CapEx amount for this year, FY 2027?
Until today, we have done close to INR 100 crores and all the advances and paid we have done. INR 183 crores we have done. Now the only the foundry last miles are there. What we have been projected, the total outlays of a close to INR 450 crores -INR 500 crores, we are going to be very near to that after this all completions over there.
Okay. Got it. Thank you very much, sir. All the best.
Thank you very much. The next question is from the line of Aniket Jain from Anand Rathi. Please go ahead.
Good evening, sir. Thank you for taking my question. My first question is that Aerospace and Defense orders have declined quite materially this quarter, while Autos as well as General Engineering orders have picked up. Do we think that the momentum in Autos and General Engineering will continue, and maybe can we see very sharp pickup in Aerospace and Defense from next quarter? Also, since Auto and General Engineering would be more of entry-level or mid-level machines, is there any risk of any impact on gross margins due to the mix change? That's my first question.
Aniket, number one, that in Aerospace and Defense, many orders we are getting through the government tenders. In a last quarter, there are some of the tenders has not been open as we have been expected. That will come, and it means we are not lose any orders. It will be in the pipe there. We are on track as our plan, and we are not seeing anything in a deep on Aerospace and Defense particularly. Okay?
In fact, one more thing I would like to highlight there, and I was always telling to you also that my aerospace, defense, or entry-level product and all product mix, my margin is not going to be affected there. If you look at this quarter, it's clearly showing that the number of machines has more. Okay? Initial, my gross margins are better on a high end, but then my overall cost is then further more there. Here, I'm absolutely is optimizing those areas to be there.
Understood, sir. My second question is that, sorry for the background noise. Maybe I'll come back and record it from alarm that has gone off. Sorry for that.
No issue.
Thank you very much. The next question is from the line of Ajay Surya from Niveshaay. Please go ahead.
Thanks for the opportunity. Sir, just one question on first, if you can just give some clarification on the current status on the French investigation which was going on Huron. What is the current status? Just follow up on this, sir. Because the CNC controller or any critical component supplies, are the end users, maybe the French government asking for more end-user certificate or compliance undertaking on machines made in India? Are we facing any maybe bottleneck on raw material supply on CNC controller or any other critical component? If you can just give some clarification on this.
Okay. Thank you, Ajay. Let's say first half your question is regarding the status of Huron. The first week of April, what we received the notice and what we have response to them, and then after there is not a single communication from them. Okay? This is the same status are all other investigative company in Europe. There is no further progresses. Let's say it's basically status quo there. Okay? Second part is the investigation and the dual-use purpose license clarifications. Okay, let's say approval. There is not much direct connectivity there. Usually right now, the time has increased to give a end-user certificate because they are in a war situation. So they are asking, clarifying, and more times are taking to giving the approvals of a license there. But these are the issues are mainly on a French side.
We are not witnessing these kinds of things in what we are making machine in India. We are not facing these kinds of challenges over here, and we are in a good shape over here. These are the two questions over that, but one of the hints what we have been listened at, is that a supply chain issues? Yes, there is a CNC controller supply chain is increasing. The concern is becoming increasing due to the worldwide this machine tools order intake is increased dramatically now. In the last six months, Japan has clocked the order book intake is more than 60% month-on-month there. The highest order intake is happening in Japan, Germany, Italy, and particularly in U.S. Due to this all AI and this data center, all these capabilities and capacities are fully booked on that.
Previously, what the delivery we were getting into controllers and all the suppliers, it almost goes on toss and more than double the time has happened. Thanks to God and we have been planned properly, and all our the capacities and everything was coming and renting off. So we were planned properly and then all the inventories and everything, what our safety factors we have been maintained. Because of that, today we are able to clock this growth. Otherwise, this is yes, it is a challenging time on a supply side there.
Maybe because a large chunk of our order book is from Aerospace and Defense, like almost 30%, 35%. So for these orders, are the designs or technology are from transfer from Huron? If you can just simplify, will this affect our standalone business or it will not affect?
No, it is our own designs. Some of the machine has been designed by Huron, but it is a jointly designed. This all our ownership and everything is with us only.
Got it.
Now we have close to 200+ designers working over here at Huron at 15-20 people. We have a larger team and more capabilities and everything we have developed over here over the period there.
Got it. Sir, congratulations on the ECMS approval. Sir, like—
Thank you.
One question on this. Sir, I mean, I have read across global CNC companies who have tried to develop controllers themselves. There are few Chinese companies and even GE tried to do, but globally when we see, only few players have succeeded. While we have a large installation base, sir, just want to understand on the execution, will there be a separate team for this or how many engineers do we have in maybe the particular electronics and controller development?
How it was maybe two years back, one year back, and how are we now going to maybe increase the team over here for all the controller, drivers, servo motors? Because, sir, it is a very critical. Controller is a brain of the machine, and we have seen companies struggle to build a commercially accepted controller. That's why maybe only Siemens, FANUC, and all these players rule the market. Just want to get some sense on what gives us the confidence that we can maybe possibly succeed over here.
Yeah. Thank you. That's a nice question. See, the Indian engineers has a great capabilities. I believe on that. Today, in terms of all these young talented people, in only this controller division in R&D center today, the teams are working separately since last 1.5 year. Now that number has reached to almost more than 110 people. We are expecting 40, 50 more engineers are going to add in the coming days, in the next around six month there. All these young engineers are designing, developing close to this 150+ people. We are very much confident in terms of the quality of the product.
Let's say right now, the biggest advantage, what the Siemens and FANUC has taken 50 years. Today, all the code development times and all, with this AI comes in a picture, and the quality outputs are coming on that. The speed has increased there. The quality and speed both are increased there. We are quite confident, and even we are putting up all the hardware manufacturing facility. It's a world-class facility we are creating. So we don't have any doubt in terms of the quality parameters. Yes, there is a challenge, acceptability from the customer side, but Jyoti has a 15,000+ customer base, and 1/3 customers are a die-hard customer for us. Whatever the things are going to give them, the people will accept and try and allow us to test over there. So I'm very much confident in coming days to execution on this area there.
Understood. If I can maybe ask one last question—
Sir, sorry to interrupt.
Yeah.
Sir, sorry to interrupt, but—
No, it is fine.
—you need to come back to the queue.
Thank you.
Thank you very much. Ladies and gentlemen, in order to ensure that the management is able to address all questions, kindly limit your questions to two per participant. I repeat, in order to ensure that the management is able to address all questions, kindly limit your questions to two per participant. The next question is from the line of Aniket Jain from Anand Rathi. Please go ahead.
Thank you for taking my question. Our second question was related to the machine realization that have declined about INR 22 lakhs a quarter. As the revenues from Huron and Aerospace and Defense picks up in the coming quarters, can we expect this to increase to INR 35 lakhs-INR 40 lakhs, or would INR 32 lakhs-INR 35 lakhs be a more reasonable range, considering we will see a very sharp pickup in entry-level and mid-level machines going forward?
See, what is your question basically?
The average realization has reduced to about INR 32 lakhs this quarter.
Yeah.
Would we see a jump to maybe INR 35 lakhs-INR 40 lakhs that we had previously? Or is this a more reasonable number because the number of entry-level and mid-level machines will be higher?
See, Aniket , I am very much clear and telling you again and again. Today, the way I have add-on a capacity, these numbers are definitely a top line is going to increase, number of machine is like that. So average realization is no more a number for me there. But yes, INR 32 lakhs - INR 35 lakhs is, even in the past also I said the range is going to be there.
Got it, sir. My second question was on the data centers. We are seeing very massive installations for data centers. Do we have any ready offerings that we can supply to data centers, and are we receiving any customer inquiries for any of our products from those customers?
Oh, of course. Many of our customers have started using our existing product as well as we are developing product for them. Too much of things are coming now. Right now, these all the data center component manufacturer, mainly in China, is a leading country today. The things are coming in India also, and we are witnessing this growth over here.
Understood, sir. Thank you so much for answering. Thank you.
Thank you very much. The next question is from the line of Abhishek Jain from KRIIS PMS. Please go ahead.
Thanks for the opportunity, and congrats for a strong set of numbers, sir.
Thank you.
My first question on the Huron side. We have already recognized certain upfront expenses in Huron, while INR 60 crore of Huron revenue has not been recognized in consolidated financial [in partner]. Will this revenue will flow in the second half and it will help in the improvement in the EBITDA margin?
Absolutely. It will cover in H2.
If I see that this quarter we have revenue of around INR 44 crores in Huron, while you have recognized around INR 15 crores revenue. If we adjust that numbers, our EBITDA margin will improve by 3%-4% on consolidated, is it a right assumption?
Yeah, it's a right assumption.
Okay, sir. My last question on the revenue guidance, the volume. Just wanted to understand what is the volume guidance for FY 2027 for Huron and standalone business, and what would be the margin guidance for separately?
Basically, in the past quarter call also, we discussed, and in terms of a number of machines, we are expecting 8,000 machines to clock. We are on to a same right now, already has seen this quarter has improved. We have already touched 3,317 machines and expecting to close to 4,700+ machines in the next two quarters there, okay? In terms of a guideline, I have told you that we will be in terms of a total numbers, Huron, Jyoti combined will grow by 25%-30%. We are on the track there. As well as margin side, in many of other past the questions I confidently given, and I am giving you that also. We will maintain our 25% commitment, and that will be closer at end of this year, we will reach out to there.
Got it, sir. When can we expect the commissioning of the new plant? When will the production start?
Already I said in a very simple way that already put to use. Only when foundry is on last mile. That is how these all the machine assembly, sheet metal, and everything has been done. So already is put to use there now. Okay? Once the foundry will finish, we will say that is complete there basically. But there is no bottleneck today in terms of what we are targeting to achieve this year there now.
Can we expect to—
Sir, sorry. Sir, sorry to interrupt, but can you please—
Already I told you that 3,300 become 4,700.
Okay. Got it. Thank you, sir. That's all from my side.
Thank you very much. The next question is from the line of Sanjay Ladha from Bastion Research. Please go ahead.
Hi, sir. Thank you so much for taking my question. Sir, my question is regarding the competition which is coming up. What we are hearing from across Japan, Taiwan, and across countries of the management of the CNC machine is, India is becoming a more focus area for them, and they are increasingly setting up service centers in India. Can you throw some light on this, and are we seeing some competition on that side, or this is not a portal to what we are doing, and we will be able to do what we are doing? Any comment from your end.
I will tell you one thing. I flip the question basically. I see differently. Until today, the Indian market has been enjoyed by these Japanese and Europeans. Now we are giving them a competition. Our market share, let us say, 10 years back, their import was 80%. Now it has reached to 38% is the manufacturing, 62% like that. Their services centers and everything is in India because they are servicing in India last 25 years there. Basically now with this, our capabilities are increasing, our capacities are increasing. We are trying to more and more compete to them.
Correct. Right. But sir, just wanted to add on that. You have already said that Japan has clocked 60% YoY growth. What I am hearing that Japan, because yen has depreciated a lot, there are more lot of inquiries happening over there. Because until then, it is an expensive market. Because of the foreign exchange problem due to this. Now we are seeing that growth is coming back in Japan again. Before my question pertaining to that, the key because the machine which was previously supplying into India or other countries, the cost is pertaining to higher because the cost differential is not there. Anything sort of that, I am just asking.
No, basically, the Japanese yen is, in terms of a dollar, it is down. But dollar against the Indian rupees has gone up. So in India, the Japanese price has not been decreased, but not an increase also.
Okay.
Okay?
Understood.
Yeah.
Okay. Sir, just a last question. Regarding that what you have said in the con call, what I am able to see is that the H1 FY 2027 was roughly 30%-35% of our revenue EBITDA and PAT, and probably H2 would be closer to 70%-75% of revenue EBITDA and PAT. Is that fair assumption to take it from your—
Let's say it's not at a 35%, it's a 40/60.
Okay. Great. Thank you so much. Thank you.
Thank you very much. The next question is from the line of [Nikhil Kanodia] from Sunidhi Securities. Please go ahead.
Good evening, sir. Am I audible?
Good evening. Yes.
Yeah. Thank you for the opportunity, and sir, firstly, congratulations on the great set of numbers.
Thank you.
Sir, it is very heartening to see that few of our concerns are getting addressed. Sir, just wanted to check, for this quarter, like half year, the cash flow was around INR 112 crores in front of INR 13 crores that we did. In that regards, as we ramp up the ordering and all of those things, our execution, what sort of cash flow run rate should we expect for the years to come and for this complete financial year?
Yeah. Thank you. Finally, this question has came because it was always people were looking and asking me. Today we are close to a 47% of our OCF is against the EBITDA. And we are looking to be a 50% numbers to end of this year. And it will be continued to be there. Operating cash flow, we will see to a 50% to the EBITDA in the coming days there, and it will be maintained.
Okay. And sir, for the entire year, you had guided that you will do approximately 8,000 odd machines, and in H1 you have already done 3,317. This is obviously on an annual basis beyond 6,000. Right now, what would you guide for the entire machinery or maybe H2, how many deliveries will be there?
I told you that we will cross 8,000 machines.
Sir, 8,000 looks very conservative, and it is an easy target. That is the reason, like any change on the target over there?
How come it has become easy target? It has become, let us say, if I look at that, if 50% growth also, okay?
It is close to 4,900. Okay? If you make a total, it is coming to 8,000. It is basically a 40/60, is a 50%+, man.
Yeah. Last year you have done somewhere around 5,600, so that was on.
5,600 was a full year.
Yeah, yeah. Full year only.
Okay. Last year we are doing almost 90% we are going to do in six months. It's not in a conservative number.
Okay, sir. Sir, on the basis of what your competitors are saying, and even you have said that there is lot of demand for machining and all of those things, be it global or domestic market. You have already mentioned that you have been planning it way ahead, and hence you don't see any challenges. Sir, just wanted to understand, say for example, in terms of controllers and all of those things, till what level can we see that there will be not any supply side issue over there? Are there any capabilities towards our own controllers? That's the part in that as well. Like till what level, say for example, from 6,000 you're going to 16,000. Till what level are we sitting comfortable with, like what level of the deliveries can we manage?
Basically, we said that we will grow continuously next two to three years by close to 25%-30%, and will be maintained. If you look at that this way, and controllers will come in the next two years' time. It's not been counted right now into this first one year there, okay? It's not in a part of that. Supply chain is basically has been continued to be a existing supplier, and there how only we are going to be maintain that.
Okay, sir. Understood. Sir, you said that there are some minor delays or like in few days we will see the foundry also up and running. Just wanted to understand, like when are we expecting it to be completely operational and then even the foundries? I am aware that like when we did the plant visit and all of those things that we were already using the facilities. In terms of foundry and all of those things, say some rough, like within a week's time or maybe a month's time, when are we expecting that to be also up and—
No, no. Foundry, first of all, this is a completely a new technology that we are being putting over here. Okay?
Okay.
This is a lost foam vacuum casting, okay? Is in a new area, and then until today in India, there are few foundries are there, but those are the small component. Today, we are going to do up to a 15 ton single piece casting with the lost form. Okay? It's a new things. Already all the equipment is under transit, okay? It will reaching there in this month end, and we are expecting to complete this quarter.
Okay. Okay, sir. Understood, sir. Those were my questions. Thank you and all the best, and sir, look forward to the stability in the Huron business as well.
Thank you. Thank you very much.
And sir, happy Diwali to you, sir. Thank you.
Happy Diwali. Happy Diwali to all of you.
Thank you very much. The next question is from the line of Rabindra Nath Nayak from Nirmal Bang Securities. Please go ahead. Mr. Rabindra, please go ahead.
Hello. Am I audible?
Yes, Rabindra.
Thank you, sir. Thank you for the opportunity. Sir, the time is short, so I will read out the question. If you can answer it properly, that will be helpful, sir. Sir, how actually you have actually targeted to spend around INR 1,000 crores of CapEx in next five years to meet the approval that is you got the ECMS scheme. So how this CapEx will be done? Because you have already completed around INR 200 crores CapEx is going to be completed this year.
So this is a five years. Whether it will be through partner basis or some joint venture basis, you will do that. That is my first question. So what is the pending revenue from Huron in a particular last year? Last quarter, there was a negative enough, there was no booking from Huron, and this quarter it is INR 15 crores we have booked. So what is the pending revenue that is to be booked, which is pending around the end-user certificate which is remaining? And how it— yes, sir?
Rabindraji, let's clear that, okay? The last quarter also in Huron, we have booked close to INR 30 crore revenue, and this quarter also we have booked INR 42 crore. Okay? But let's say we are supplying the parts and machines to them, okay? So in a conso, it has been nullified there, okay? And that's how it's become a INR 15 crore there, okay? Otherwise, there is a dispatches are happened, INR 42 crores to be there, okay? And let's say the revenue what we have been reversed in the last quarter of the last year, it was close to INR 65 crores, is still is pending as it is. Once we will get the clearance, we are able to book the revenue to be there. Okay?
Okay.
This was the questions of the Huron side. What was the other your question there?
The CapEx, you know, this INR 1,000 crore, INR 10,000 crore—
In the CapEx. Let me clear to you that. Basically, in a CapEx side, for the electronics component manufacturing, what we have targeted is, let's say, close to a total project cost is going to come close to INR 1,250 crores -INR 1,300 crores. Out of that, INR 1,020 crores, machinery, see this all subsidy will get against the machinery, not to be a land and building to be there. Okay? So, we are going to do it in a phased manner. In a first phase, we are going to do the investment in a one-year time is close to INR 400 crores -INR 450 crores. And out of that, we are expecting close to a INR 200 crores to be a subsidy there. So our outlay is going to be INR 200 crore for the next one year there.
Okay. And sir, why this year, this quarter, the tax rate is so high, 30%? Is it any reason, or it is going to normalize coming year?
No, tax rate is not 30%.
Okay. This quarter it is 30%. Is it the rate, you know, of What is the average tax rate we should assume for the next full year?
Tax rate 10 years on, one is, one for the loss, you have to see. See, basically, tax rate, Rabindrabhai , you have to see into standalone. Okay? In a consolidation, there is a loss has been reduced, so tax rate you will see more there.
Okay. And sir, what—
Once you see the standalone, you will find a clarity there.
Okay. Sir, what is the employee cost run rate we can expect in next two quarters? Your plant is going to be commissioned, so what is the employee cost rate for quarter we can expect for the next two quarters? And what is the—
Let's say, first half, what the cost of first half, it is going to be similar in a second half.
Okay.
Because already we have been deployed the more people.
Okay. Sir, what is the foundry capacity lastly? What is the total foundry capacity, annual capacity, new foundry capacity, and the existing foundry capacity?
The existing foundry capacity is close to 1,500 ton per month. With the new foundry capacity, we will reach to a 5,000 ton per month.
Okay, 5,000 ton. 20,000 ton per month, the total capacity, including a new foundry?
No, no, no. It is from 1,500 ton - 5,000 ton.
Okay, 1,500 ton - 5,000 ton. Understood, sir. Thank you, sir. Thank you very much. All the best, sir.
Thank you. Thank you.
Thank you very much. The next question is from the line of Amitoj Singh from 360 ONE Capital. Please go ahead.
Yeah. Thank you so much for taking my question. Just one question that, how much of Huron revenue was deferred this quarter? I think last quarter we had around INR 35 crores of deferrals. How much will the figure be this quarter?
Basically, it's not in a deferred, but basically, it's not been, let's say, booked. It's not in a deferred, it's not in a perfect thing because we are not, as per the POCM, we are not booked. This quarter also, let's say, the production and everything has happened nicely what we are expecting. What we are looking to be INR 250 crores, INR 300 crores, we will get it soon there once the clarity will come. This quarter also close to EUR 3 million -EUR 3.5 million additional we have produced, but we are not able to dispatch them.
Got it, sir. Got it. Just one more question on the interest expense. I didn't get the rationale behind why our interest expenses declined drastically this quarter. Should we assume this to be the stable quarterly rate, or was this just a one-time fluctuation?
No, it will be stable in a quarter-to-quarter there.
Okay.
See, we have a large working capital utilizations. It's ups and down. Your short-term borrowing is become a plus or minus, then it will be plus or minus there.
Got it, sir. Got it. Thank you so much. Thank you.
Thank you very much. The next question is from the line of Simran Kumari from Narnolia Financial Services Limited. Please go ahead.
Hi, sir. Congratulations on a good set of numbers.
Thank you, ma'am.
Most of my question has been answered. Just wanted to get a clarity on Huron. What are the total revenue we are expecting to recognize during second half FY 2027?
Ma'am, I said that we are going to reach close to INR 300 crores. It means close to EUR 28 million there. Today is EUR 6.5 million. The difference are going to come in the next two quarters then.
My second question is basically on the realization. You mentioned, due to more entry-level machines, our realization has been in the range of INR 32 lakhs - INR 35 lakhs. Is it same for the FY 2028 as well, or do you think it will go to our previous range of INR 35 lakhs, INR 36 lakhs?
We will be maintaining, I said that, in between INR 35 lakhs - INR 36 lakhs in the next two to three years there.
Okay, sir. Thank you so much. Those are my questions.
Thank you.
Thank you very much. Ladies and gentlemen, due to time constraints, that was the last question. I would now like to hand the conference over to management for closing comments.
Thank you all for joining us today. I hope I have addressed all your questions. We remain committed to keeping the investment community informed with regular updates on any development in the company. For any further information or queries, please feel free to reach out to us or SGA, our investors relation advisor. Thank you very much for joining this call, and I wish you a wonderful, happy Diwali to all of you there. Thank you. Thank you very much.
Thank you very much. On behalf of Jyoti CNC Automation Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.