Jyoti CNC Automation Limited (JYOTICNC) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Jyoti CNC Automation Limited 3Q FY '25 Results Update Conference Call hosted by Equirus Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Harshit Patel from Equirus Securities. Thank you, and over to you, sir.

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 '25 performance and your outlook. Over to you, sir. And then we'll take it up for Q&A.

Thank you, Harshit. Good evening, friends. I'm delighted to extend a warm welcome to each one of you to have chosen to invest in Jyoti CNC. Thank you for the level of trust and confidence you have placed in us. Your decision to join us as investors has boosted our confidence to another level. I want to assure you that we are fully committed to maximizing the value of our shareholders. We truly understand and responsibility that comes with your 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 3 numbers. We have clocked the consolidated revenue of INR 449.5 crores in quarter 3 FY '25 as compared to a INR 337 crores in quarter 3 FY '24, delivering the growth of 19%. We have clocked the consolidated EBITDA of INR 112.6 crores in Q3 FY '25 as compared to the INR 96.3 crores in Q3 FY '24, delivering a growth of 17%. The EBITDA margin is 25% in Q3 FY '25 as compared to that is close to 25% in Q3 FY '24. We have maintained the same margin year-on-year. We have clocked the consolidated PBT of INR 93.1 crore in Q3 FY '25 as compared to INR 67.2 crores in Q3 FY '24, delivering growth of 39%. We have clocked the consolidated PAT of INR 80.2 crores in Q3 FY '25 as compared to that of INR 48 crores in Q3 FY '24, delivering the robust growth of 67%. Our Q3 FY '25 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 rest others. Our Q3 FY '25 order intake 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 others. Our total consolidated order book as on 31st December 2024 stands at INR 4,360 crores. The Industry segment split for the same is 41% from Aerospace, 16% of Auto and Auto Components, 18% from General Engineering, 16% from EMS, 4% Die and Mould and 5% from others. Now let me take you through the consolidated 9-month performance of the company. In terms of revenue, we have clocked the consolidated revenue of INR 1,242 crores in 9 months FY '25 as compared to the INR 888 crores in 9 months FY '24, delivering the growth of 40%. In terms of EBITDA, we have clocked the consolidated EBITDA of INR 313 crores in the 9 months FY '25 as compared to INR 167.1 crores in 9-month FY '24, delivering the growth of 88%. The EBITDA margin is 25.2% in 9 months FY '25 as compared to that 18.8% in 9 months in FY '24. In terms of a profit before tax at the PBT level, we have clocked the consolidated PBT of INR 271.2 crores in 9 months FY '25 as compared to that INR 77.3 crores in 9 months FY '24, delivering the growth of 251%. In terms of the profit after tax. We have clocked the consolidated PAT of INR 207 crores in 9 months FY '25 as compared to that of INR 51.2 crores in 9-month FY '24, delivering a growth of 304%. Our total consolidated revenue for 9 months FY '25 stands at INR 1,242 crores. The Industry segment split for the same is 45% from Aerospace, 24% from Auto and Auto Components, 18% from General Engineering, 7% from EMS, 1% from Die and Mould and 5% rest others. There are many people who have been joined over here that I'll make it very quickly Jyoti at a glance. The company has started inception in 1989. We have a subsidiary company called as Huron Graffenstaden as in France, Germany, Canada and Turkey. Our total plant area is close to 253,000 square meter. We have 2 manufacturing facility at Rajkot and 1 facility at Strasbourg, France. We have more than 200-plus product variants and more than 130,000-plus machine installed across the globe. Today, our closing order book is close to INR 4,360 crores. Today, our plant installed capacity has reached to 6,000 machines per annum in India, and 120 machines per annum at France there. In a key milestone in 2025, we have launched around 7 new models in January 2025, the model called as a GU8 This is a 5-axis gantry-type machining center. AWT is alloy wheel turning machine. BTM is a tween spindle with a gantry automation. ATM200 is an inverted turning center with automation, especially for the EV segment. HP 4000 and 6000 is a high-performance series of the horizontal machining center. Tachyon beta is one of the 5-axis highest the world's fastest the machining center that we have been developed, and this is a key milestone in 2025. In terms of a total employee count has reached to now at December 2024 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 -- 1 April to 31 December, close to 390 people have been added and -- on a Jyoti team over here. Entire our 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 Strasbourg. In this journey, we have developed more than 200-plus product variants, and we have added 7 in this year, in particular in our FY 2025 over here. In terms of the manufacturing capacity, we have a close to 237,000 square meter in the industrial area at Rajkot. And Phase 1 we have a 6,000 machines per annum as a capacity has been installed. And we have furthermore 3 more phase we can do over here on the same facility that much of PSR available over here. Huron basically is our technology backbone. Basically, Huron is located in a very strategic location on central part of Europe. It's a border of France, Germany and Switzerland place called as a Strasbourg, exposure to the world-class manufacturing there. Basically, all the machine tool builder is surrounding on a 200-kilometer of area there. Huron is a technology access for us to be a highest sophisticated 5-axis technology product to be there. In our product basket, because of the Huron, we are able to maintain all the aerospace and very high precision manufacturing areas to be there. We have -- because of Huron from 1857, so very renowned brand values they're carrying and market approach and reach have been given by the -- across the Europe, China, U.S., Canada and all the areas to be there. In terms of our sales and distribution network. Today, we are at 29 sales and service centers spread across the 12 states in India, 2 distributor dealers in India and 11, let's say, other offices and all are like that. Mostly Jyoti CNC sales product through its dealer network and directly to its customers there. In terms of a global customer base, we are -- wherever the manufacturing are there, the Huron and Jyoti and more than 130,000-plus machine installation across more than 60 countries to be there. In terms of industry segments, we are serving into aerospace, die and mould, automobile, electronics, railways, agriculture, infrastructure, oil and gas, health care, walls and pumps, power and bearing industries like that. Our product presence across the value chain. We have classified in terms of the 3 categories, we call it an entry-level product. We consider entry-level product is -- 0 to 50 lakh is considered to be an entry-level product. Mid-range is 50 lakhs to 2 crore; high-end machines, we consider 2 crores and above is considered to be a higher-end product. We have a very marquee customers in terms of aerospace. We have HAL, Tata, Airbus, the TAI, the GE, the Safran, the Boeing, the Sikorsky, Avic, Bharat Forge. And in automobile, all this Tata, Mahindra, BMW, Volvo, Mercedes, Ashok Leyland, Fiat, Volkswagen, Audi, and many of our customers are in India. In India, we have more than 12,000-plus customer base. In recent, we are recognized by the Times Group and best brand in the metal cutting industry consecutively 7th time from 2018 to 2024 and recognized as an iconic brand of India by ET, the Economic Time Edge on this December over here. Let's say, road ahead, I would like to tell you something about the global machine tool industry. Today, the machine tool consumption worldwide is close to $79 billion. Currently, India has a consumer rank of 6th with 3.9 billion consumption and expected to be -- by 2030, India is expected to enter in the list of top 3 global consumer a machine tool globally there. Let's say, with this, our mission, our propelling technology and prospering life in that, we are, let's say, a strong management team, a world-class manufacturing infrastructure, wide-range product basket, the strong R&D capabilities, large installation base, global footprint, legacy and technology from the Huron and manufacturing and the tailwinds are let's say today is manufacturing growth in India. In this, we consider like that, we have a 4 engines are our future and of our life there. The #1 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 industries to be there. In terms of aerospace, the global aerospace market is expected to reach to a $1.3 trillion and at the rate, the CAGR is growing almost -- expected to be grow up to 2030 to 8.2%, and increase in aerospace spending globally due to a lot of geopolitical circumstances are there. So next, another 5, 6 years, we are looking very much -- the high potential growth we are seeing in aerospace industry. In EMS, the Indian EMS industry is expected to grow at an annual rate of 34% until FY '27-'28, reaching a staggered value of close to $54 billion today. Mobile phone exports from India during FY '24 has reached to all-time high to close to a $15 billion. The overall electronics exports jumped nearly 24% to close to $30 billion in FY '24. The potential of a CNC machine demand in EMS industries in India is over more than 1 lakh machine within a span of next 5 years. In automobile, the electrical vehicles -- the global electrical vehicle market is expected to grow at 17.8% of CAGR during '24 to 2030. The electric car market in India is expected to grow to 56% CAGR during '24 to 2030. Global EV market size is expected to reach to close to USD 600-plus billion and will grow at close to 9.8% of CAGR by 2028. Here, we have a very special product to fit into this all product range over there. And we are working and developing many products to manufacture those special components are required to this 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 2022-'23 to '26-'27. Let's say, the Tata semiconductor chip fabrication unit in Gujarat was approved and with an outlay of nearly close to INR 500 billion. And all our -- the products -- we are working towards to develop a new product basket to fit into use of a semiconductor industries to be there. Strategies for the next leap. We are where -- 4 main strategies are there. First is a people development because the most key challenge in going forward what we are envisaged that the people is a key of this industries, we need a very high quality and precision people are required over here. And for that, this is our first direction to move forward over there. Product development is a key because we need to produce a variety of range of machines to fit for our customer there. Third strategy is market expansion. We need to reach out still to be some global areas like a U.S.A. and China is the biggest potential market is available for us there. And last, our manufacturing capacity hands on the expansion based on the going forward, every 2 years, we need to expand our capacity, and these are the main our 4 strategies to be there. The first is a people development. To take care of that, we have developed the center of excellence, and that has been the setup over here in our facilities at Rajkot to embed the growth mindset, to foster technology and innovation, to ensure the quality, to enhance the productivity, to make Jyoti a great place to work. And with this moto of lead self, to lead others and lead the business. In terms of a product development, recently, one of the most renowned exhibition called as Imtex, held in January 2025, and we have participated at Imtex 2025, which is the largest machine tool exhibition of the nation, which takes place every 2 years. Jyoti has participated with the boot size of close to 1,500 square meters and displaying a close to 24 machines here. The footfall for the Imtex 2025 was historically high with 133,000 business visitors from 70 countries, which might have generated to support business worth more than INR 3,500 crores, and the business inquiries worth approximately close to INR 37,000 crores. Jyoti has also received a total 3,000-plus machine inquiries on this port over here on the next -- another 7 days there. We have witnessed a very encouraging plus the enthusiasm from the entire industrial spectrum, lots of corporate and SMEs were sound bullish on the CapEx front and shared their ambitious CapEx plan for the near future. It seems a huge investment is on the way in the aerospace and defense automotive, particularly in EV, general engineering, infrastructure, power, agriculture, die and mould, health care 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 construction is more than 60% here. In terms of manufacturing capacity expansion. On the 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 that, we are going to make a close to additional 10,000 machines capacity within the next 2 years over here. The new infrastructure of 6,000 machine plant capacity will come into a full utilization from quarter 4 of this. The new building at Huron at SO2 will be finished by end of the March because in Huron also where the expansion is going on and all the necessary industrial and safety permissions are expected to come in the month of May, and the new building will be fully operational from June 2025. To capture the ongoing business opportunities from the European market, as have already added -- we already added 24 people at Huron level also. With this, I once again, thanks to all of you there to participated into our journey and encouraging all of us over here. Thank you very much.

[Operator Instructions] The first question comes from the line of Akshay from AK Investment.

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

I could not understand your first question.

Sir, after the robust first 2 quarters, in the first quarter, we had year-on-year growth of 74% and in the second quarter, we had 33% growth. But in this quarter, we have only 19% growth year-on-year growth in the quarter 3. So can you put some light on that? And how you're shaping the -- also quarter 4 is going to be?

Yes, thank you. I understood now. So basically, this -- in quarter 2 and quarter 3, we have, let's say, in the past call also, I told you that we have reached to some bottleneck areas 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 a quarter 2 end. And this is, let's say, all the systems and procedures and everything is set right into this 1 quarter, and you will see this -- all the additional facility comes in the picture, that will -- you will see in the coming quarters to be there, okay? So quarter 2 and quarter 3, we were completely utilized almost, a good level of capacity to be there. And there were -- bottleneck was there, it has been removed. But that we have a long manufacturing process. So that we will see the color in the coming quarters to be there. In terms of the quarter 4 compared to the -- this quarter 3, you will, let's say, see a good growth to be there. Momentum will be 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 crore, so what is the expected time line to execute the same? And can we maintain the same current EBITDA margin of 25% in this orders?

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

The next question comes from the line of Sandeep Jain from Baroda BNP Paribas Mutual Funds.

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?

Yes. So basically, even, let's say, the last quarter, we got a big orders and all. And today, our order book has restructured the way there. Let's say, 2.5 years is the delivery time today, okay? Once the light will come out, our manufacturing capacity will increase. And our customers also will feel that we have now capacity in place. We will see further more orders on the EMS sector business.

Okay. So the INR 525 crores of orders which we have got in quarter 2, the execution time line for that is 2, 2.5 years kind of?

No, that is we have to -- the expectation is this entire order book -- order we have to release before, let's say, December and the last quarter of -- third and fourth quarter, we have to finish 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, [Foreign Language] there will be some more orders willing to buy.

Okay, 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] INR 4,300, INR 4,400 crores [Foreign Language]?

Yes. So basically, [Foreign Language] that mainly has comes from [indiscernible] basically, okay?

INR 1,800-odd crores?

Yes. Yes. So that's the -- in France, we have one of the best order book situation today there. Today, there are -- we are facing only one challenge over there. It's really we are stumbling on capacity side there, okay? The full floor is jam there because we have all these manufacturing, you know that these machines are very high value machines. Each machines are more than INR 10 crore-plus like that, and occupying more space are there. And our infrastructure is still, let's say, is under enhancement. Once that will be in place, the Huron, we will see the much bigger growth in next coming after 2 to 3 quarters there.

Okay. So in this quarter, if I look at, means...

Parallelly, we have in my -- just my speech, I have covered that. We have added almost 24 people because parallelly, you need people also. So there's all people also are under training and everything has been done now. So almost a 15% of the people also has been add on there. And we still are putting up the people parallel to our infrastructure to be there.

And the growth in the revenue is 19% for this quarter only, year-on-year growth, but aerospace and defense is contributing around INR 220-odd crores. So where is the kind of -- means, I feel that it is below our guidance kind of thing. Whether this will be bunch up in the quarter 4 or what is we can understand about it?

So in terms of aerospace and the execution of the aerospace, okay, if you look at that, in this quarter, close to 49% is execution, okay, in the aerospace industry, okay, and that is compared to quarter 3. Quarter 3 was 38%. So it improved a lot there. Yes.

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 INR 2,000 crore of revenue?

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

Okay. And the miss in this quarter is largely due to?

Is an -- 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 are developing many new products, the participation over here.

The next question comes from the line of [ Swanand Samanth from Klay Capital ].

Congrats on good set of numbers. So my question, again, is on the revenue side. So if I remember correctly, at the start of the year, we had an order book of somewhere about INR 3,000-plus crores, and at that point of time, we guided that this is executable over a period of 1.5 years. So if I back calculate it, our revenue run rate should have been somewhere about INR 550 crores, which has not been the case for the past 3 quarters. So just wanted to understand, you said that the one of the bottleneck was the capacity, but do that guidance still kind of holds to be kind of -- can we increase this revenue run rate going forward? That's my first question. I mean what is your say and 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 crores in the 9 months in terms of order inflows. But if I remember, we were guiding about INR 1,500 crores of order inflow 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, mix of the aerospace and defense in the closing order book has gone down to somewhere about 40%, of which I think is the higher -- has the highest margins for -- so kind of when we started executing this INR 4,000 crores of order book, do we expect that the margin next year could be slightly lower than financial year '25? Yes, those are my questions.

So there are many questions in queue there, okay. These are lengthier questions. Okay. So let me start with the first to be capacity, okay. Let's say, we -- let's say today also, I mentioned in my previous answer that today based on this INR 4,360 crores of order book in terms of today's run rate, let's say, it will take 2.5 years and we are fully committed to our customers to their expectation also is to be within 18 to 20 months like that. So we are increasing our capacity. The first benchmark we have finished on September. The teams are in place into -- in a ground reality. We will see this in the coming quarter to see the numbers there. Parallelly, we have started expanding furthermore there to overcome over here. And that's now the story behind that. We are also aggressively behind that on our capacity because this is today is the capacity constraint is only -- is a blocker for us to increase our run rate towards here, okay? And even in my call -- in my speech, I covered that because people is a key. This is all our quality executions like that. And these all are very high precision assemblies and all that there. We have added 400 people around 9 months. We have trained them, we have put on to that, and many people still more on that line. So we all are trying to fulfill our quality commitment to our customers and to reach out their delivery or 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 2.5 month target. And until these customers are not seeing that the deliveries are happening and then the plant capacity comes in place, there are -- big pipes are there. Many, many inquiries are on line there on our future business to be there, okay? I think this is your 2. What is your further third and fourth question on that? Can you remember me that?

Yes. So again, on the margin side, the aerospace and defense sector 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 another month -- 9 months run rate is about 45%-plus, so do we expect some kind of moderation in margins for next year as compared to this year?

No, in terms of today's closing order book, our order book still in aerospace is close to 40%-plus there, revenue side.

In terms of the closing order book, sir?

It's still as in aerospace has been 41% there, the combination of these 2. We don't see any -- this is not only the -- the value is not defined only the aerospace. Even in a general engineering and all, I said that our business model is divided into 3 categories: entry-level product, mid-range machines and high-end machines, okay? So mid-range and high-end also in general engineering and all, this is increasing. Even this quarter, we have seen a 36% over there. So we don't foresee in the next 2 years in any challenges in terms of a margin area to be there.

Okay. Got it. 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, right? So how capacity is coming and how quickly can we ramp it up?

So basically, we have enhanced the full capacities in 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 to 4,000 further machines in this third quarter of this financial year FY '26.

Okay. So for the next year also, we would be at the same capacity is what you're saying?

Close to. On the third quarter, we'll see some more light on -- this 10,000 machine extra capacity will come in a picture. So out of that, close to 3,000, 4,000 machines partially, we are able to see the capacity support will come on a December quarter.

The next question comes from the line of Sanidhya from Unicorn Assets.

So my first question, sir, is on the execution side. So can you highlight the number of machines that we delivered this quarter?

Yes. So a number of machines in this quarter we have delivered is to be 894 machines, with the highest ever value, average has reached to 50.27.

Understood. So this is likely because of the mix from aerospace and defense being higher this quarter, right?

Correct.

Okay. Great. So could we see this dip a bit because of the EMS getting into the like 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 45 to 50 lakhs of a range to be the there, average machine line.

Okay. And when do you think will the execution from the AMS will push in?

See, the parallel, AMS the number will increase, but parallelly, we are adding capacity in aerospace also. So it will go hand on hand. So we are expecting to -- in this entire order book will be -- average range to be in every quarter will be between 45, near 45 to 50 only.

No, I was explicitly interested was asking into that, is there any slowdown in the demand from the AMS or what are hearing from the customers?

Not at all, not at all there. In fact, we are now expecting to more capacity come much faster so we can participate on a bigger way there.

Great. And sir, on the new capacity addition, so what's the status? What have we tried this quarter like where are we?

So basically, all the construction of building is going on. The machine shop building is already, let's say, it is going to be completed the first day in this -- before the March. The assembly building, we are expecting to finish somewhere in September and then all the equipments and everything will be start fitting over there on a first phase there. All the equipment and all, the machinery has already, it is going to start to be on a first quarter it will reach to us over here.

And sir, this facility is in Rajkot, near our existing or somewhere...

on the existing building only. We have in existing, let's say, we have a large extra land was available. So Phase 1 was 6,000 machines and second phase, we are doing close to 10,000, everything is on the same place 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 #35, there are 4 images?

So what you are seeing in a newly developed assembly line, okay, on Page #35, okay? That part has been constructed in September, okay? And that has already been put to use there. In the left side, what you see the green is not today the green now, this new building is almost about to finish their now. What I said that will be ready in March and April here. So similar way will be the next left side on the same picture, there is a left side this building is almost now is on a final stage to be there. So almost a double building is built there. And in terms of assembly, what you see that in a picture in May and near bottom is written to the new sub-assembly under construction. So that was the part of our -- the first bottleneck removal. That has been over and it is good to use there now. Then you see the newly developed assembly line. In the left side, it's not a full picture there. There are another assembly line under construction that will be finished somewhere in September.

Okay. Great, sir. And sir, just one input in this. It would be great if we can highlight these things on a social medial handles across platforms and timely update 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.

The next question comes from the line of Kushal Mondal with Yashwi Securities Private Limited.

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 million to EUR 40 million to be executable there, okay? It means EUR 7 million to EUR 8 million -- EUR 8 million to EUR 9 million per quarter like that. And we are running right now more than 80% capacity there.

And what is the number of machines sold in this quarter?

One second, overall number. We have made close to 17 machines to be there.

Okay. And the 10,000 additional capacity will come until December 2026, so what will be the utilization level from the -- additional capacity for the full fiscal?

So let's say, this -- until today, we have made close to 2,800 machines in 3 quarters, particularly 2,723 and we will touch close to 4,000 and 4,500 in between in this year FY '25. And FY '26 -- what your question is FY '26. FY '26 numbers, we'll see how the capacity utilization or capacity will be ready and utilization will...

Okay. And you have said that INR 400 crores of CapEx were announced for this additional capacity. And I remember that in one of the interview you said the asset turnover ratio will be 4x, which means INR 1,600 crores of sales. So now currently, the PAT margin is at 15% to 18%, which you said you will make around INR 240 crores of profit from the additional capacity that is INR 1,600 crores of sales, which makes that on INR 400 crores of CapEx you are making INR 240 crores, which means an ROCE of 60%. So can you...

So yes, we are going to do the INR 400 crores of CapEx. And based on this CapEx, the capacity will reach out to be a 16,000 machines there total. It means additional 10,000 capacity will be there. And based on that or your question, I have given an answer and it is absolutely right there.

So you are going to make around 60% of ROCE, right?

In terms of particular if you calculated add-on values, it's right there. But if you make total, it will not come to the ROCE level like this.

And calculated the add-on value...

You have to calculate it based on the today's plant, the investment because this is the incremental investments are there.

So like on INR 400 crores of CapEx, means, the APR you said that it will be 4x, means INR 1,600 crores in a sense. So what will be the time line for this revenue number?

So I told you that once, let's say, the capacity comes in a picture and all I told you in past also that entire 16,000 capacity will be utilized in 3 years.

The next question comes from the line of Harshit from Grace Investment, LLP. 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.

Sir, just congratulations on one of the best exhibition we had from the Indian companies in IMTEX. So very, very well done, sir.

Thank you, Kamlesh-bhai. Have you visited?

Yes, I have been there, sir.

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 percent 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. And sir, just on the -- more on the competition side because we have been hearing like all your competitors have become much more aggressive seeing the growth in India, particularly in the CNC. So how are we seeing the competition? And are we -- are in terms of pricing as compared to like, say, Fanuc or any other counterpart and on the -- 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, all world people are targeting to India today, okay. Anyhow, there is a 60% still the machines are coming from abroad there, particularly company 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, the capacity installations and like that, we are one of the most competitive manufacturing landscape. Yourself has visited and you know -- you've seen our facility, how competitive and still we are making this factory is one of the world class factories to be here. I think we are very much prepared to complete these all the brands, already they are here and they will increase the load. We are also growing very well over there, and we are able to compete them very nicely, in terms of the pricing there. In terms of 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 a same accuracy level or we have the same technology on like that. Until today, all Indians are talking to be like this. Now -- and if you have visited there in exhibition, so you have seen that. We have over crossed this boundaries now. Now we have made this machine, what we said is Tachyon Beta is twice faster than the Fanuc robot there. And many other Japanese machines to build there. So we have leapfrog, we have gone ahead there in terms of a 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 there.

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

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

Okay. And lastly, sir, will you please give the breakout between entry-level, mid-level and high-end machine?

Kamlesh-bhai, your voice is breaking.

Can you please provide the breakup between entry-level, mid-level and high-level machine, sir?

Yes. So basically, quarter 3, the number of machines in entry level was 817, the mid-level machine was close to 22 and high-end machine was close to 55.

The next question comes from the line of Partha Mazumder from Eastern Financiers Limited.

I just need to know, I mean, in aerospace, what all areas that our machines are actually on the fabricated using our CNC machines. what all parts are actually manufactured in aerospace?

Beg your Pardon, please tell me your question clearly.

Yes. In aerospace, I mean, our CNC machines are deployed, which all parts are actually manufactured using our CNC machines?

So basically, the Jyoti Huron machine has basically been 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 this into engine parts or...

Yes, engine parts.

Engine parts, right, sir?

Yes. The maximum machines are going into engine parts. Even we have the products are going into structural machine also.

Okay. So I mean, for instance, like another Indian company, which is Azad engineering actually manufacturers 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 this further more capacity, and we are supplying all the machines from Jyoti here.

The next question comes from the line of Kushant Arora from Baroda BNP Asset Management Limited.

Sir, just a bookkeeping part of -- I mean I just wanted to understand that what is the contribution of Huron on 9 months basis and for this quarter?

So Huron, let's say, one second. Huron has done, let's say, close to INR 200 crores of revenue in this 9 months.

Okay.

And for this quarter, it was close to INR 65 crores.

INR 65 crores. And what would be the EBITDA contribution for these?

Great. So EBITDA in Huron has reached to 15.75%.

All right. All right. It's on 9 months basis?

In 9-month basis. In the past last year 9-month basis, it was a loss. And a substantial improvement has been seen in Huron level there.

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 our additional facility is coming up, I'm inviting you all of you to visit our plant and to be a presence over here. Thank you very much.

Thank you. On behalf of Equirus Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.