Result Updates: Jyoti CNC
Strong growth in Order Book
Jyoti CNC Automation
Key takeaways from Q4 / FY2024 results:
Muted execution in Q4 (YoY) but the full-year results are great:
Turnaround in FY 2024, from loss-making entity to profit. A huge jump in EBITDA margin.
The growth in Q4 (YoY) is just 1% but the whole FY24 is 44% up compared to FY23
Because of the IPO and strong performance, the company has become a Net Cash entity
Strong Growth in Orderbook:
The order book, on the base of over 3200 crore grew by 635 crore (~20% Growth)
This growth in order book is backed by increased capex to fulfill the orders
Huge Scope of Import Substitution
India consumes 3.3% of the global consumption but produces only 1.7% of global production.
Foraying into Semiconductor Space
Investing for Growth
Jyoti CNC is foraying into new products and new markets
To support this growth increasing manufacturing capacity
What next?
The quarter performance in terms of revenue was sluggish YoY. However, the order book is a lead indicator of future growth and on this front, the company has done remarkably well.
However, this quarter has not given any substantial clue about the future of the EMS segment with only 2% of incremental orders, the share of EMS order book has reduced from 12% to 7%.
So the question of whether it will cross the chasm remains unanswered. However, there are green shoots in the industry with Tata Electronics looking for Indian Partners in the CNC space
Market Reaction - Cautious
Retracement to breakout zone on avg volume after results
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