Jyoti CNC Automation Ltd

- For the planned capacity expansion to increase machine production from current levels to 10,000 machines, Jyoti CNC Automation is targeting a CAPEX of around INR 200-250 crore. - Management indicated that this CAPEX will most likely be funded through internal accruals. - There was no mention of any plans for fresh debt or equity fundraising during the call. - The company aims to maintain financial discipline by leveraging internal cash generation to fund growth initiatives, avoiding additional external financing at this stage.

- Q1 FY25 CAPEX was ₹30 crore, mainly for removing bottlenecks in the plant. - Additional CAPEX of ₹20-30 crore planned to complete this phase. - Next major CAPEX planned for capacity expansion targeting more than 6,000 machines. - Expansion plan for increasing machine capacity from 6,000 to potentially 10,000 machines. - New capacity expansion work to start October 2024 and expected completion by March/April 2025. - Capacity expansion aims to meet growing EMS customer demand. - CAPEX for major expansion expected around ₹200-250 crore. - Funding of expansion primarily from internal accruals, no major debt planned. - Assembly capacity expansion at Huron, France on track, expected handover by Nov/Dec 2024.

- Jyoti CNC expects strong growth in sales and volumes driven by capacity expansions and increasing demand in aerospace, defense, EMS, and general engineering sectors. - Current capacity of 6000 machines is nearly utilized; plans to expand capacity by an additional 5000 to 10,000 machines starting October, to be completed by March/April next year. - Entry level machines (major volume) expected to grow at 20-30% CAGR over next 5-7 years, driven by auto components, dyes, molds, and general engineering industries. - EMS segment order book expected to grow from current ~7% to 20-25% of total business in coming years, with new dedicated manufacturing facilities planned. - Strong outlook for aerospace and defense sector with large pipeline and steady order inflow expected post-Sept tender. - Management confident to maintain and possibly improve current EBITDA margins alongside revenue growth. - Order book visibility at Rs. 3403 crore and execution momentum enabling revenue target of ~Rs. 2000 crore for FY25.

- Jyoti CNC reported strong Q1 FY25 growth with revenue rising 74% (Rs. 208 Cr to Rs. 361 Cr), EBITDA up 476% (Rs. 16.3 Cr to Rs. 94.1 Cr), and PAT turning profitable at Rs. 51.8 Cr from loss earlier. - The company expects continued momentum in revenue and margins for FY25, aiming to maintain or slightly improve profitability. - Capacity expansions are on track to support order execution and growth, with plans to increase machine production capacity from 6000 to up to 10,000 primarily targeting EMS segment. - EMS sector contribution to order book expected to rise from ~7% to 20-25% over next 2-3 years, supporting future revenue diversification. - Margin guidance: Entry level machines have gross margin ~37-40%, mid-level ~40-45%, high-end ~55%; overall sustainable margin guidance at 25-27%. - Strong order book visibility (~Rs. 3400 Cr at Q1 end) and expected large orders in aerospace, defense, EMS indicate positive outlook for earnings and EPS growth in near term.

- Current order book stands at approximately Rs. 3403 crores as of Q1 FY25. - About 50% of the order book is from aerospace and defense, 16% from auto and auto components, another 16% from general engineering, 7.4% from EMS, and 7% from dye and mold sectors. - The company received significant new orders in Q1, including Rs. 97 crores in Huron entity. - Anticipated order inflow for FY25 is strong, with expectations of large orders from aerospace, defense, and EMS sectors. - EMS order contribution expected to grow from current ~7% to 20-25% of the total portfolio in the coming years. - Capacity expansion from 6000 to potentially 10,000 machines is planned to meet growing demand. - Pending EMS orders close to Rs. 100 crore expected to be dispatched in Q2 FY25, with remaining dispatches in Q3. - Execution timeline for order book targeted within 15-18 months.