Ladies and gentlemen, good morning and welcome to the Jyoti CNC Automation Limited Jyoti Automation Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions as this presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you and over to you, sir. Thank you, ma'am. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Jyoti CNC Q2 FY 2025 earnings call. Today, we have with us Mr. Parakramsinh G. Jadeja, Managing Director of Jyoti CNC. Without much further delay, I will now hand over the call to Mr. Jadeja, sir, for his opening remarks, which will be followed by Q&A. Over to you, sir. Thanks, Mohit. Good evening, friends. I'm delighted to explain the warm welcome to each one of you to the earnings call of Jyoti CNC for Q2 FY 2024-2025. Thank you for the level of trust and confidence you have placed in us in our journey so far. We truly understand the responsibility that comes with your investment and we promise to deliver the best of us. We can start with a brief presentation and have a question-and-answer session later. In terms of a consolidated financial performance of Q2, in terms of revenue from the operations from Q2 FY 2024, it was INR 302 crores plus one-third to INR 430.7 crores, almost a 43% growth in revenue variable here. In terms of EBITDA and the margin, let's say on FY24, it was 18% and is now today it's went up to 25%. In terms of EBITDA numbers, it was INR 54 crores. Now it's reached INR 6.6 crores. In terms of operationals upside, the quarter Q FY 2024, it was INR 16.8 crores and it has gone up to close to 352% and is up to INR 75.9 crores, close to INR 76 crores. And this revenue from the operations in the business, if you look at that out of this INR 431 crores, aerospace has contributed close to 38%. Auto and auto component, our vertical has contributed to be 39%. General engineering has contributed 15%. Die and mold has contributed to be 2%. EMS business has contributed 11% and others are almost 4% there. And the average price realization of our machines variable to close to INR 41.37 lakhs. And the number of machines what we have sold in this quarter is close to 1,051 machines this year. If I summarize for the H1 numbers, so H1 numbers from Q FY 2024 to Q FY 2025 is gone up by 54% and the total H1 numbers have reached to INR 793 crores almost over here. In terms of EBITDA, on H1 EBITDA last year was 14.6% and this year has reached to a 23%, 20% growth in stock. And the INR 200 crores EBITDA has been cut over here. In terms of the CapEx, last year H1 is close to INR 3.4 crores. It has reached to INR 127 crores almost to be right now. H1 performance in terms of our verticals, the aerospace vertical has contributed to be close to 57%, 53%. Auto and auto component has contributed to be 28%. General engineering is 17%. Die and Mold is 1%. EMS is 6% there. And in terms of revenue, it's divided into two areas. Like India, we have close to 55% and we have an export close to 45% there. In terms of the orders in quarter two of Q FY 2025, the orders we have seen are very nice. The orders we have received in this quarter, and in terms of numbers, INR 1,283 crores is the order intake in this quarter. After that, even aerospace we have received close to 22%. Auto and auto component is close to 15%. General engineering we have received close to 17%. Die and Mold is close to 1%. And significant movement we have seen in terms of EMS, which has reached to almost 15% over here, and others are 4% there. In our closing orders today, the opening orders was close to 3,200. Some 3 crores was there. New orders have been aimed to INR 1,683, and the dispatch has been removed, but not today. The visibility of the future ahead and the growth forward for us is to be looked like INR 4,289 crores orders today. In terms of the order book, total order book today, out of this close to INR 4,300 crores, aerospace is contributing now is to be 43%. Auto and auto component is 15%. General engineering is 15%. Die and Mold is 2%. EMS is reached to 17%. Others are close to 5%. Now we move forward to talk a little bit more about Jyoti. Jyoti is basically a first-generation business and we are into metal cutting industries. We make a machine for manufacturing the metal cutting. We are fully a vertically integrated company. We have our own foundry. We do the machine shop. We do all components, physical manufacturing in-house over here. We have a CNC machine shop, paint shop integrated over there. We have our own family factory and fully controlled temperature and there. We produce the most precise world-class manufacturing facility that's been here. In terms of our key strength is in R&D facilities out there. All this is our design and development. We are able to do it within our Leonardo da Vinci R&D Centre, where we have a more definition of the engineers are working, designing and developing every day a new product over here. In the last two decades, we have designed and developed more than 200-plus variants out of 40-plus different verticals. We have developed really specific product baskets of today's middle of the hour part of the Industry 4.0. Our product is called the 7th Sense. It is a fully integrated design and developed over here. We have many, many AI-based tools we have called the PreciProtect. And this takes care of the complete machine through the real-time accident-proof machines to be there. And we have many, many solutions provided completely for applications for the industry as a part of that. So it is always a solution for our customer out there. In terms of our manufacturing capacity, let's say last year we were having 2,400 machines. And now with our new bottleneck and everything has been removed, we have reached to the second strand with close to 6,000 machines. And this is fully integrated into one plant over here. And we have one facility there in France. Similarly, we can do in the same plant this kind of multiple by three more fold. We can do that because of the space available in the existing plant. Huron is basically our technology platform. Huron has since the company has established since 1857. It is located in the Central Europe part, a place called Strasbourg. It's on the border of France and Germany, and very near to the world's most machining center as well as the world's most automobile and general engineering and highest precision manufacturing area in the central part of Europe there. Because of that, we have access to technology. We learn a lot of things from that to make the sophisticated five-axis machine, and with that, our product baskets and everything on a five-axis machine can all be large. Because of that, we have many aerospace companies to be there, and because of Huron, it's a very esteemed brand and brand value adding assets. More and more customers today are turning to us worldwide. We have a sales and distribution network. We have close to 49 sales and distribution centers across India. We have two distributors and dealers out there in India, and the rest of the areas are which is directly into the customers there. We have a customer base out there. We have more than 60 countries. Until today, in installation, it was more than 150,000-plus machines. Mainly in Europe and Asia, and even we have a big installation into China, Canada, USA, and Mexico. In terms of our end-user industry segments, I would like to highlight something more like that. The metal cutting industry is quite every segment of the part in manufacturing there. So we are covering aerospace, die and mold, automobile, electronics, railway, agriculture, infrastructure, oil and gas, healthcare, pumps and valves, power, gearing, and. We have divided, let's say, a total of our presence into entire value chain in part of the middle-level products where we have complete CNCs out there. In total, we have a 200-plus CNC out there. We have mid-range machines and we have high-level machines. We have divided these categories based on the value of the machines. That's up to the INR 50 lakhs machines we call the middle-level product. The mid-level machines we call the INR 50 lakhs and more than INR 50 lakhs. More than INR 50 lakhs to INR 2 crores is up to mid-range machines. Above 2 crores and all is called a high-end machine like that. Jyoti is the entire product basket there. In terms of our clients in aerospace, we have HAL, the Tier 1 systems, Airbus, Skyroot Aerospace, GE, the Boeing, Safran, Rolls-Royce, Ford, Porsche. In terms of automobile, you have all the names we have which is Mazda, BMW, Volvo, Mercedes, Audi, Volkswagen, Skoda, Kia. These are our. They are tied to that. We call the suppliers out there. In terms of the other clients, Shaktiman, ADA, Tesla, Bosch, we have more than 1,000 plus customer base out here basically there. Recently, in the last quarter, we were recognized by three different awards. One is Iconic Brand in India by our Times Group. The Economic Times has given this award. And another two was into a best product in the D&B award into different institutions in the entire world. Road ahead over here, India is in terms of manufacturing, is growing on a great speed over here. And our assumptions are like that in the next 5 to 7 years, Indian manufacturing is going to grow. Today is around 15%-16%. And in there, our government is looking to more than 22% in between 22%. There, the machine tools total growth has been anticipated more than 20% because CNC are only five to seven years here. India is, let's say, consuming close to $50 million worth of CNC machine tools in India today. Out of that, close to still 60% CNC machines to be implemented. There's our going forward with our opportunities out there. We have a vision of a mission is like that, propelling technology into live. With a strong management team, world-class infrastructure, wide product basket, strong R&D capabilities, large installation base, global footprint, and the legacy and technology from Huron, we are looking to be a very robust team in coming days. We have divided into this, let's say, four different categories. Today, category number one we call is automobile and general engineering. Second is aerospace. These two areas we are largely being established on. And the third area we are developing in terms of the order book that has been receiving significantly over here in coming days, this is going to be third vertical is called EMS. The fourth vertical that is going to be our future, and it is a nice area that all our R&D team is working. In the next two to three years, we will see a good revenue space in 2020 there. So these are our four going forward is in four vertical for our business segment over here. Right now, our growth engine is we are looking to be aerospace, EMS. It's now electric vehicle sector. And in future, we are looking to be the semiconductor industry to be here basically. In terms of the strategies for Leap 4, we are looking number one is to be people development. Number two is to be a product development. Three is a market expansion. Fourth is a manufacturing capacity expansion over here. In the people development, there's the key that we can challenge what we are going to create over here because the business is the way our order books are there and still the big pipelines are there. The key is that we need to ramp up in our execution capabilities and resolve the capabilities are directly related to the people. So we are working towards to develop our own excellence, center of excellence there that is going to develop this kind of people very quickly over here there. That's our one of the top strategies to be there. Market is always the new product which is every day is happening with the new challenges and all. Our R&D teams are making many products on like that. This year, we have developed three more products we call as a U5. It's called as Tachyon 4FT and TS120. These are the three categories of the product. U5 is basically aerospace machines. Tachyon is a new basically the product for the EMS and healthcare industries. TS120, this is the third product what we have developed for the automation. And more and more to a large production facilities out there. The twin spindle machines are there as well. Market expansion, we are looking to be entering. Now today, we are very good in terms of presence in India, in Europe. We are now looking to do U.S. there. Very soon, we will have some tech centers and our sales offices are going to be in within one year basically to be there in the market. Expansion into the U.S. there. Other areas like Thailand, Vietnam, and Indonesia. There also, we are working with some of our team over there. And we are looking to be more visible in that area also. In terms of the manufacturing capacity, it's going to be a big requirement. The way we have today's order, as well as we have a pipeline is available with us. And just now, we have completed our project and all. So phase one, we have reached close to 6,000 machines as in volume and capacity. And this, we are extending based on this our pipeline as well as our order books like that. Additional 10,000 machine capabilities we are doing over here. And on the same front and same geography over here, and these competencies, we are expecting to finish in the Q2 finished area this year and Q2 next over here there. That's it from my side. I think we will go forward on a question and answer session from here. 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 their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankur from HDFC Life Insurance. Please go ahead. Yeah. Hi, sir. Good evening. Thanks for your time. I have a couple of questions. One on the overall industry itself. Like you said, it's about a $3 billion overall machine consumption. You said about 50% is domestic. Within this, obviously, auto is a fairly large proportion. Given the slowdown that we've seen in the auto industry, how would you see growth rates overall? Or do you believe there are new segments like EMS, of course, is a fairly large upcoming segment? So if you could just help us, how do you see the overall industry maybe grow in the next one, two, three years? Within that, how do you see which segments are the largest growth drivers? And therefore, which ones help us in that regard? Yeah. Thank you, Ankur. Basically, in terms of the automobile industry, yes, is the biggest growth driver for any manufacturing industries. And for us also, in our segment over here also. But right now, in the auto and auto area, there is a lot of transformation happening there. And people are moving from, let's say, more and more on the EV side. There are a lot of new components that have been designed and developed over here. It's completely a new arena has been opened. And more and more hybrid-type people are moving there. And the more components are like that. So they require basically for our assumption like that, we are looking to be more consumption required in the next three to five years in auto area to be there. And based on this, all the government and all, people are looking to be more and more on the export side. All the component manufacturing is these people are exporting more and more. And then right now, in a China plus one, let's say many of companies are moving to join the parts in auto and auto industries also to be here there. So in terms of the auto numbers, it's stagnant in terms of consumption. In our inquiry level, in our order book, in our component manufacturers are still investing and their confidence is so high, so we are looking close to a good numbers are going to come. A growth rate, we are looking to be a 20%-25% on an auto and auto component machine also to be there in the next three-to-five years. Other segment, what is in India we are looking is to be general engineering. Okay, so general engineering, because of these exports and all are increasing, and a lot of manufacturing in other areas like that here, there we are seeing a good number of companies there. Of course, the third area is electronics, is completely a new area for all of us here and that is to be our growth driver to be there. Ladies and gentlemen, good morning and welcome to the Jyoti CNC Automation Limited Jyoti Automation Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions as this presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you and over to you, sir. Thank you, ma'am. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Jyoti CNC Q2 FY 2025 earnings call. Today, we have with us Mr. Parakramsinh G. Jadeja, Managing Director of Jyoti CNC. Without much further delay, I will now hand over the call to Mr. Jadeja, sir, for his opening remarks, which will be followed by Q&A. Over to you, sir. Thanks, Mohit. Good evening, friends. I'm delighted to explain the warm welcome to each one of you to the earnings call of Jyoti CNC for Q2 FY 2024-2025. Thank you for the level of trust and confidence you have placed in us in our journey so far. We truly understand the responsibility that comes with your investment and we promise to deliver the best of us. We can start with a brief presentation and have a question-and-answer session later. In terms of a consolidated financial performance of Q2, in terms of revenue from the operations from Q2 FY 2024, it was INR 302 crores plus one-third to INR 430.7 crores, almost a 43% growth in revenue variable here. In terms of EBITDA and the margin, let's say on FY24, it was 18% and is now today it's went up to 25%. In terms of EBITDA numbers, it was INR 54 crores. Now it's reached INR 6.6 crores. In terms of operationals upside, the quarter Q FY 2024, it was INR 16.8 crores and it has gone up to close to 352% and is up to INR 75.9 crores, close to INR 76 crores. And this revenue from the operations in the business, if you look at that out of this INR 431 crores, aerospace has contributed close to 38%. Auto and auto component, our vertical has contributed to be 39%. General engineering has contributed 15%. Die and mold has contributed to be 2%. EMS business has contributed 11% and others are almost 4% there. And the average price realization of our machines variable to close to INR 41.37 lakhs. And the number of machines what we have sold in this quarter is close to 1,051 machines this year. If I summarize for the H1 numbers, so H1 numbers from Q FY 2024 to Q FY 2025 is gone up by 54% and the total H1 numbers have reached to INR 793 crores almost over here. In terms of EBITDA, on H1 EBITDA last year was 14.6% and this year has reached to a 23%, 20% growth in stock. And the INR 200 crores EBITDA has been cut over here. In terms of the CapEx, last year H1 is close to INR 3.4 crores. It has reached to INR 127 crores almost to be right now. H1 performance in terms of our verticals, the aerospace vertical has contributed to be close to 57%, 53%. Auto and auto component has contributed to be 28%. General engineering is 17%. Die and Mold is 1%. EMS is 6% there. And in terms of revenue, it's divided into two areas. Like India, we have close to 55% and we have an export close to 45% there. In terms of the orders in quarter two of Q FY 2025, the orders we have seen are very nice. The orders we have received in this quarter, and in terms of numbers, INR 1,283 crores is the order intake in this quarter. After that, even aerospace we have received close to 22%. Auto and auto component is close to 15%. General engineering we have received close to 17%. Die and Mold is close to 1%. And significant movement we have seen in terms of EMS, which has reached to almost 15% over here, and others are 4% there. In our closing orders today, the opening orders was close to 3,200. Some 3 crores was there. New orders have been aimed to INR 1,683, and the dispatch has been removed, but not today. The visibility of the future ahead and the growth forward for us is to be looked like INR 4,289 crores orders today. In terms of the order book, total order book today, out of this close to INR 4,300 crores, aerospace is contributing now is to be 43%. Auto and auto component is 15%. General engineering is 15%. Die and Mold is 2%. EMS is reached to 17%. Others are close to 5%. Now we move forward to talk a little bit more about Jyoti. Jyoti is basically a first-generation business and we are into metal cutting industries. We make a machine for manufacturing the metal cutting. We are fully a vertically integrated company. We have our own foundry. We do the machine shop. We do all components, physical manufacturing in-house over here. We have a CNC machine shop, paint shop integrated over there. We have our own family factory and fully controlled temperature and there. We produce the most precise world-class manufacturing facility that's been here. In terms of our key strength is in R&D facilities out there. All this is our design and development. We are able to do it within our Leonardo da Vinci R&D Centre, where we have a more definition of the engineers are working, designing and developing every day a new product over here. In the last two decades, we have designed and developed more than 200-plus variants out of 40-plus different verticals. We have developed really specific product baskets of today's middle of the hour part of the Industry 4.0. Our product is called the 7th Sense. It is a fully integrated design and developed over here. We have many, many AI-based tools we have called the PreciProtect. And this takes care of the complete machine through the real-time accident-proof machines to be there. And we have many, many solutions provided completely for applications for the industry as a part of that. So it is always a solution for our customer out there. In terms of our manufacturing capacity, let's say last year we were having 2,400 machines. And now with our new bottleneck and everything has been removed, we have reached to the second strand with close to 6,000 machines. And this is fully integrated into one plant over here. And we have one facility there in France. Similarly, we can do in the same plant this kind of multiple by three more fold. We can do that because of the space available in the existing plant. Huron is basically our technology platform. Huron has since the company has established since 1857. It is located in the Central Europe part, a place called Strasbourg. It's on the border of France and Germany, and very near to the world's most machining center as well as the world's most automobile and general engineering and highest precision manufacturing area in the central part of Europe there. Because of that, we have access to technology. We learn a lot of things from that to make the sophisticated five-axis machine, and with that, our product baskets and everything on a five-axis machine can all be large. Because of that, we have many aerospace companies to be there, and because of Huron, it's a very esteemed brand and brand value adding assets. More and more customers today are turning to us worldwide. We have a sales and distribution network. We have close to 49 sales and distribution centers across India. We have two distributors and dealers out there in India, and the rest of the areas are which is directly into the customers there. We have a customer base out there. We have more than 60 countries. Until today, in installation, it was more than 150,000-plus machines. Mainly in Europe and Asia, and even we have a big installation into China, Canada, USA, and Mexico. In terms of our end-user industry segments, I would like to highlight something more like that. The metal cutting industry is quite every segment of the part in manufacturing there. So we are covering aerospace, die and mold, automobile, electronics, railway, agriculture, infrastructure, oil and gas, healthcare, pumps and valves, power, gearing, and. We have divided, let's say, a total of our presence into entire value chain in part of the middle-level products where we have complete CNCs out there. In total, we have a 200-plus CNC out there. We have mid-range machines and we have high-level machines. We have divided these categories based on the value of the machines. That's up to the INR 50 lakhs machines we call the middle-level product. The mid-level machines we call the INR 50 lakhs and more than INR 50 lakhs. More than INR 50 lakhs to INR 2 crores is up to mid-range machines. Above 2 crores and all is called a high-end machine like that. Jyoti is the entire product basket there. In terms of our clients in aerospace, we have HAL, the Tier 1 systems, Airbus, Skyroot Aerospace, GE, the Boeing, Safran, Rolls-Royce, Ford, Porsche. In terms of automobile, you have all the names we have which is Mazda, BMW, Volvo, Mercedes, Audi, Volkswagen, Skoda, Kia. These are our. They are tied to that. We call the suppliers out there. In terms of the other clients, Shaktiman, ADA, Tesla, Bosch, we have more than 1,000 plus customer base out here basically there. Recently, in the last quarter, we were recognized by three different awards. One is Iconic Brand in India by our Times Group. The Economic Times has given this award. And another two was into a best product in the D&B award into different institutions in the entire world. Road ahead over here, India is in terms of manufacturing, is growing on a great speed over here. And our assumptions are like that in the next 5 to 7 years, Indian manufacturing is going to grow. Today is around 15%-16%. And in there, our government is looking to more than 22% in between 22%. There, the machine tools total growth has been anticipated more than 20% because CNC are only five to seven years here. India is, let's say, consuming close to $50 million worth of CNC machine tools in India today. Out of that, close to still 60% CNC machines to be implemented. There's our going forward with our opportunities out there. We have a vision of a mission is like that, propelling technology into live. With a strong management team, world-class infrastructure, wide product basket, strong R&D capabilities, large installation base, global footprint, and the legacy and technology from Huron, we are looking to be a very robust team in coming days. We have divided into this, let's say, four different categories. Today, category number one we call is automobile and general engineering. Second is aerospace. These two areas we are largely being established on. And the third area we are developing in terms of the order book that has been receiving significantly over here in coming days, this is going to be third vertical is called EMS. The fourth vertical that is going to be our future, and it is a nice area that all our R&D team is working. In the next two to three years, we will see a good revenue space in 2020 there. So these are our four going forward is in four vertical for our business segment over here. Right now, our growth engine is we are looking to be aerospace, EMS. It's now electric vehicle sector. And in future, we are looking to be the semiconductor industry to be here basically. In terms of the strategies for Leap 4, we are looking number one is to be people development. Number two is to be a product development. Three is a market expansion. Fourth is a manufacturing capacity expansion over here. In the people development, there's the key that we can challenge what we are going to create over here because the business is the way our order books are there and still the big pipelines are there. The key is that we need to ramp up in our execution capabilities and resolve the capabilities are directly related to the people. So we are working towards to develop our own excellence, center of excellence there that is going to develop this kind of people very quickly over here there. That's our one of the top strategies to be there. Market is always the new product which is every day is happening with the new challenges and all. Our R&D teams are making many products on like that. This year, we have developed three more products we call as a U5. It's called as Tachyon 4FT and TS120. These are the three categories of the product. U5 is basically aerospace machines. Tachyon is a new basically the product for the EMS and healthcare industries. TS120, this is the third product what we have developed for the automation. And more and more to a large production facilities out there. The twin spindle machines are there as well. Market expansion, we are looking to be entering. Now today, we are very good in terms of presence in India, in Europe. We are now looking to do U.S. there. Very soon, we will have some tech centers and our sales offices are going to be in within one year basically to be there in the market. Expansion into the U.S. there. Other areas like Thailand, Vietnam, and Indonesia. There also, we are working with some of our team over there. And we are looking to be more visible in that area also. In terms of the manufacturing capacity, it's going to be a big requirement. The way we have today's order, as well as we have a pipeline is available with us. And just now, we have completed our project and all. So phase one, we have reached close to 6,000 machines as in volume and capacity. And this, we are extending based on this our pipeline as well as our order books like that. Additional 10,000 machine capabilities we are doing over here. And on the same front and same geography over here, and these competencies, we are expecting to finish in the Q2 finished area this year and Q2 next over here there. That's it from my side. I think we will go forward on a question and answer session from here. 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 their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankur from HDFC Life Insurance. Please go ahead. Yeah. Hi, sir. Good evening. Thanks for your time. I have a couple of questions. One on the overall industry itself. Like you said, it's about a $3 billion overall machine consumption. You said about 50% is domestic. Within this, obviously, auto is a fairly large proportion. Given the slowdown that we've seen in the auto industry, how would you see growth rates overall? Or do you believe there are new segments like EMS, of course, is a fairly large upcoming segment? So if you could just help us, how do you see the overall industry maybe grow in the next one, two, three years? Within that, how do you see which segments are the largest growth drivers? And therefore, which ones help us in that regard? Yeah. Thank you, Ankur. Basically, in terms of the automobile industry, yes, is the biggest growth driver for any manufacturing industries. And for us also, in our segment over here also. But right now, in the auto and auto area, there is a lot of transformation happening there. And people are moving from, let's say, more and more on the EV side. There are a lot of new components that have been designed and developed over here. It's completely a new arena has been opened. And more and more hybrid-type people are moving there. And the more components are like that. So they require basically for our assumption like that, we are looking to be more consumption required in the next three to five years in auto area to be there. And based on this, all the government and all, people are looking to be more and more on the export side. All the component manufacturing is these people are exporting more and more. And then right now, in a China plus one, let's say many of companies are moving to join the parts in auto and auto industries also to be here there. So in terms of the auto numbers, it's stagnant in terms of consumption. In our inquiry level, in our order book, in our component manufacturers are still investing and their confidence is so high, so we are looking close to a good numbers are going to come. A growth rate, we are looking to be a 20%-25% on an auto and auto component machine also to be there in the next three-to-five years. Other segment, what is in India we are looking is to be general engineering. Okay, so general engineering, because of these exports and all are increasing, and a lot of manufacturing in other areas like that here, there we are seeing a good number of companies there. Of course, the third area is electronics, is completely a new area for all of us here and that is to be our growth driver to be there. Ladies and gentlemen, good morning and welcome to the Jyoti CNC Automation Limited Jyoti Automation Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions as this presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you and over to you, sir. Thank you, ma'am. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Jyoti CNC Q2 FY 2025 earnings call. Today, we have with us Mr. Parakramsinh G. Jadeja, Managing Director of Jyoti CNC. Without much further delay, I will now hand over the call to Mr. Jadeja, sir, for his opening remarks, which will be followed by Q&A. Over to you, sir. Thanks, Mohit. Good evening, friends. I'm delighted to explain the warm welcome to each one of you to the earnings call of Jyoti CNC for Q2 FY 2024-2025. Thank you for the level of trust and confidence you have placed in us in our journey so far. We truly understand the responsibility that comes with your investment and we promise to deliver the best of us. We can start with a brief presentation and have a question-and-answer session later. In terms of a consolidated financial performance of Q2, in terms of revenue from the operations from Q2 FY 2024, it was INR 302 crores plus one-third to INR 430.7 crores, almost a 43% growth in revenue variable here. In terms of EBITDA and the margin, let's say on FY24, it was 18% and is now today it's went up to 25%. In terms of EBITDA numbers, it was INR 54 crores. Now it's reached INR 6.6 crores. In terms of operationals upside, the quarter Q FY 2024, it was INR 16.8 crores and it has gone up to close to 352% and is up to INR 75.9 crores, close to INR 76 crores. And this revenue from the operations in the business, if you look at that out of this INR 431 crores, aerospace has contributed close to 38%. Auto and auto component, our vertical has contributed to be 39%. General engineering has contributed 15%. Die and mold has contributed to be 2%. EMS business has contributed 11% and others are almost 4% there. And the average price realization of our machines variable to close to INR 41.37 lakhs. And the number of machines what we have sold in this quarter is close to 1,051 machines this year. If I summarize for the H1 numbers, so H1 numbers from Q FY 2024 to Q FY 2025 is gone up by 54% and the total H1 numbers have reached to INR 793 crores almost over here. In terms of EBITDA, on H1 EBITDA last year was 14.6% and this year has reached to a 23%, 20% growth in stock. And the INR 200 crores EBITDA has been cut over here. In terms of the CapEx, last year H1 is close to INR 3.4 crores. It has reached to INR 127 crores almost to be right now. H1 performance in terms of our verticals, the aerospace vertical has contributed to be close to 57%, 53%. Auto and auto component has contributed to be 28%. General engineering is 17%. Die and Mold is 1%. EMS is 6% there. And in terms of revenue, it's divided into two areas. Like India, we have close to 55% and we have an export close to 45% there. In terms of the orders in quarter two of Q FY 2025, the orders we have seen are very nice. The orders we have received in this quarter, and in terms of numbers, INR 1,283 crores is the order intake in this quarter. After that, even aerospace we have received close to 22%. Auto and auto component is close to 15%. General engineering we have received close to 17%. Die and Mold is close to 1%. And significant movement we have seen in terms of EMS, which has reached to almost 15% over here, and others are 4% there. In our closing orders today, the opening orders was close to 3,200. Some 3 crores was there. New orders have been aimed to INR 1,683, and the dispatch has been removed, but not today. The visibility of the future ahead and the growth forward for us is to be looked like INR 4,289 crores orders today. In terms of the order book, total order book today, out of this close to INR 4,300 crores, aerospace is contributing now is to be 43%. Auto and auto component is 15%. General engineering is 15%. Die and Mold is 2%. EMS is reached to 17%. Others are close to 5%. Now we move forward to talk a little bit more about Jyoti. Jyoti is basically a first-generation business and we are into metal cutting industries. We make a machine for manufacturing the metal cutting. We are fully a vertically integrated company. We have our own foundry. We do the machine shop. We do all components, physical manufacturing in-house over here. We have a CNC machine shop, paint shop integrated over there. We have our own family factory and fully controlled temperature and there. We produce the most precise world-class manufacturing facility that's been here. In terms of our key strength is in R&D facilities out there. All this is our design and development. We are able to do it within our Leonardo da Vinci R&D Centre, where we have a more definition of the engineers are working, designing and developing every day a new product over here. In the last two decades, we have designed and developed more than 200-plus variants out of 40-plus different verticals. We have developed really specific product baskets of today's middle of the hour part of the Industry 4.0. Our product is called the 7th Sense. It is a fully integrated design and developed over here. We have many, many AI-based tools we have called the PreciProtect. And this takes care of the complete machine through the real-time accident-proof machines to be there. And we have many, many solutions provided completely for applications for the industry as a part of that. So it is always a solution for our customer out there. In terms of our manufacturing capacity, let's say last year we were having 2,400 machines. And now with our new bottleneck and everything has been removed, we have reached to the second strand with close to 6,000 machines. And this is fully integrated into one plant over here. And we have one facility there in France. Similarly, we can do in the same plant this kind of multiple by three more fold. We can do that because of the space available in the existing plant. Huron is basically our technology platform. Huron has since the company has established since 1857. It is located in the Central Europe part, a place called Strasbourg. It's on the border of France and Germany, and very near to the world's most machining center as well as the world's most automobile and general engineering and highest precision manufacturing area in the central part of Europe there. Because of that, we have access to technology. We learn a lot of things from that to make the sophisticated five-axis machine, and with that, our product baskets and everything on a five-axis machine can all be large. Because of that, we have many aerospace companies to be there, and because of Huron, it's a very esteemed brand and brand value adding assets. More and more customers today are turning to us worldwide. We have a sales and distribution network. We have close to 49 sales and distribution centers across India. We have two distributors and dealers out there in India, and the rest of the areas are which is directly into the customers there. We have a customer base out there. We have more than 60 countries. Until today, in installation, it was more than 150,000-plus machines. Mainly in Europe and Asia, and even we have a big installation into China, Canada, USA, and Mexico. In terms of our end-user industry segments, I would like to highlight something more like that. The metal cutting industry is quite every segment of the part in manufacturing there. So we are covering aerospace, die and mold, automobile, electronics, railway, agriculture, infrastructure, oil and gas, healthcare, pumps and valves, power, gearing, and. We have divided, let's say, a total of our presence into entire value chain in part of the middle-level products where we have complete CNCs out there. In total, we have a 200-plus CNC out there. We have mid-range machines and we have high-level machines. We have divided these categories based on the value of the machines. That's up to the INR 50 lakhs machines we call the middle-level product. The mid-level machines we call the INR 50 lakhs and more than INR 50 lakhs. More than INR 50 lakhs to INR 2 crores is up to mid-range machines. Above 2 crores and all is called a high-end machine like that. Jyoti is the entire product basket there. In terms of our clients in aerospace, we have HAL, the Tier 1 systems, Airbus, Skyroot Aerospace, GE, the Boeing, Safran, Rolls-Royce, Ford, Porsche. In terms of automobile, you have all the names we have which is Mazda, BMW, Volvo, Mercedes, Audi, Volkswagen, Skoda, Kia. These are our. They are tied to that. We call the suppliers out there. In terms of the other clients, Shaktiman, ADA, Tesla, Bosch, we have more than 1,000 plus customer base out here basically there. Recently, in the last quarter, we were recognized by three different awards. One is Iconic Brand in India by our Times Group. The Economic Times has given this award. And another two was into a best product in the D&B award into different institutions in the entire world. Road ahead over here, India is in terms of manufacturing, is growing on a great speed over here. And our assumptions are like that in the next 5 to 7 years, Indian manufacturing is going to grow. Today is around 15%-16%. And in there, our government is looking to more than 22% in between 22%. There, the machine tools total growth has been anticipated more than 20% because CNC are only five to seven years here. India is, let's say, consuming close to $50 million worth of CNC machine tools in India today. Out of that, close to still 60% CNC machines to be implemented. There's our going forward with our opportunities out there. We have a vision of a mission is like that, propelling technology into live. With a strong management team, world-class infrastructure, wide product basket, strong R&D capabilities, large installation base, global footprint, and the legacy and technology from Huron, we are looking to be a very robust team in coming days. We have divided into this, let's say, four different categories. Today, category number one we call is automobile and general engineering. Second is aerospace. These two areas we are largely being established on. And the third area we are developing in terms of the order book that has been receiving significantly over here in coming days, this is going to be third vertical is called EMS. The fourth vertical that is going to be our future, and it is a nice area that all our R&D team is working. In the next two to three years, we will see a good revenue space in 2020 there. So these are our four going forward is in four vertical for our business segment over here. Right now, our growth engine is we are looking to be aerospace, EMS. It's now electric vehicle sector. And in future, we are looking to be the semiconductor industry to be here basically. In terms of the strategies for Leap 4, we are looking number one is to be people development. Number two is to be a product development. Three is a market expansion. Fourth is a manufacturing capacity expansion over here. In the people development, there's the key that we can challenge what we are going to create over here because the business is the way our order books are there and still the big pipelines are there. The key is that we need to ramp up in our execution capabilities and resolve the capabilities are directly related to the people. So we are working towards to develop our own excellence, center of excellence there that is going to develop this kind of people very quickly over here there. That's our one of the top strategies to be there. Market is always the new product which is every day is happening with the new challenges and all. Our R&D teams are making many products on like that. This year, we have developed three more products we call as a U5. It's called as Tachyon 4FT and TS120. These are the three categories of the product. U5 is basically aerospace machines. Tachyon is a new basically the product for the EMS and healthcare industries. TS120, this is the third product what we have developed for the automation. And more and more to a large production facilities out there. The twin spindle machines are there as well. Market expansion, we are looking to be entering. Now today, we are very good in terms of presence in India, in Europe. We are now looking to do U.S. there. Very soon, we will have some tech centers and our sales offices are going to be in within one year basically to be there in the market. Expansion into the U.S. there. Other areas like Thailand, Vietnam, and Indonesia. There also, we are working with some of our team over there. And we are looking to be more visible in that area also. In terms of the manufacturing capacity, it's going to be a big requirement. The way we have today's order, as well as we have a pipeline is available with us. And just now, we have completed our project and all. So phase one, we have reached close to 6,000 machines as in volume and capacity. And this, we are extending based on this our pipeline as well as our order books like that. Additional 10,000 machine capabilities we are doing over here. And on the same front and same geography over here, and these competencies, we are expecting to finish in the Q2 finished area this year and Q2 next over here there. That's it from my side. I think we will go forward on a question and answer session from here. 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 their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankur from HDFC Life Insurance. Please go ahead. Yeah. Hi, sir. Good evening. Thanks for your time. I have a couple of questions. One on the overall industry itself. Like you said, it's about a $3 billion overall machine consumption. You said about 50% is domestic. Within this, obviously, auto is a fairly large proportion. Given the slowdown that we've seen in the auto industry, how would you see growth rates overall? Or do you believe there are new segments like EMS, of course, is a fairly large upcoming segment? So if you could just help us, how do you see the overall industry maybe grow in the next one, two, three years? Within that, how do you see which segments are the largest growth drivers? And therefore, which ones help us in that regard? Yeah. Thank you, Ankur. Basically, in terms of the automobile industry, yes, is the biggest growth driver for any manufacturing industries. And for us also, in our segment over here also. But right now, in the auto and auto area, there is a lot of transformation happening there. And people are moving from, let's say, more and more on the EV side. There are a lot of new components that have been designed and developed over here. It's completely a new arena has been opened. And more and more hybrid-type people are moving there. And the more components are like that. So they require basically for our assumption like that, we are looking to be more consumption required in the next three to five years in auto area to be there. And based on this, all the government and all, people are looking to be more and more on the export side. All the component manufacturing is these people are exporting more and more. And then right now, in a China plus one, let's say many of companies are moving to join the parts in auto and auto industries also to be here there. So in terms of the auto numbers, it's stagnant in terms of consumption. In our inquiry level, in our order book, in our component manufacturers are still investing and their confidence is so high, so we are looking close to a good numbers are going to come. A growth rate, we are looking to be a 20%-25% on an auto and auto component machine also to be there in the next three-to-five years. Other segment, what is in India we are looking is to be general engineering. Okay, so general engineering, because of these exports and all are increasing, and a lot of manufacturing in other areas like that here, there we are seeing a good number of companies there. Of course, the third area is electronics, is completely a new area for all of us here and that is to be our growth driver to be there. Ladies and gentlemen, good morning and welcome to the Jyoti CNC Automation Limited Jyoti Automation Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions as this presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you and over to you, sir. Thank you, ma'am. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Jyoti CNC Q2 FY 2025 earnings call. Today, we have with us Mr. Parakramsinh G. Jadeja, Managing Director of Jyoti CNC. Without much further delay, I will now hand over the call to Mr. Jadeja, sir, for his opening remarks, which will be followed by Q&A. Over to you, sir. Thanks, Mohit. Good evening, friends. I'm delighted to explain the warm welcome to each one of you to the earnings call of Jyoti CNC for Q2 FY 2024-2025. Thank you for the level of trust and confidence you have placed in us in our journey so far. We truly understand the responsibility that comes with your investment and we promise to deliver the best of us. We can start with a brief presentation and have a question-and-answer session later. In terms of a consolidated financial performance of Q2, in terms of revenue from the operations from Q2 FY 2024, it was INR 302 crores plus one-third to INR 430.7 crores, almost a 43% growth in revenue variable here. In terms of EBITDA and the margin, let's say on FY24, it was 18% and is now today it's went up to 25%. In terms of EBITDA numbers, it was INR 54 crores. Now it's reached INR 6.6 crores. In terms of operationals upside, the quarter Q FY 2024, it was INR 16.8 crores and it has gone up to close to 352% and is up to INR 75.9 crores, close to INR 76 crores. And this revenue from the operations in the business, if you look at that out of this INR 431 crores, aerospace has contributed close to 38%. Auto and auto component, our vertical has contributed to be 39%. General engineering has contributed 15%. Die and mold has contributed to be 2%. EMS business has contributed 11% and others are almost 4% there. And the average price realization of our machines variable to close to INR 41.37 lakhs. And the number of machines what we have sold in this quarter is close to 1,051 machines this year. If I summarize for the H1 numbers, so H1 numbers from Q FY 2024 to Q FY 2025 is gone up by 54% and the total H1 numbers have reached to INR 793 crores almost over here. In terms of EBITDA, on H1 EBITDA last year was 14.6% and this year has reached to a 23%, 20% growth in stock. And the INR 200 crores EBITDA has been cut over here. In terms of the CapEx, last year H1 is close to INR 3.4 crores. It has reached to INR 127 crores almost to be right now. H1 performance in terms of our verticals, the aerospace vertical has contributed to be close to 57%, 53%. Auto and auto component has contributed to be 28%. General engineering is 17%. Die and Mold is 1%. EMS is 6% there. And in terms of revenue, it's divided into two areas. Like India, we have close to 55% and we have an export close to 45% there. In terms of the orders in quarter two of Q FY 2025, the orders we have seen are very nice. The orders we have received in this quarter, and in terms of numbers, INR 1,283 crores is the order intake in this quarter. After that, even aerospace we have received close to 22%. Auto and auto component is close to 15%. General engineering we have received close to 17%. Die and Mold is close to 1%. And significant movement we have seen in terms of EMS, which has reached to almost 15% over here, and others are 4% there. In our closing orders today, the opening orders was close to 3,200. Some 3 crores was there. New orders have been aimed to INR 1,683, and the dispatch has been removed, but not today. The visibility of the future ahead and the growth forward for us is to be looked like INR 4,289 crores orders today. In terms of the order book, total order book today, out of this close to INR 4,300 crores, aerospace is contributing now is to be 43%. Auto and auto component is 15%. General engineering is 15%. Die and Mold is 2%. EMS is reached to 17%. Others are close to 5%. Now we move forward to talk a little bit more about Jyoti. Jyoti is basically a first-generation business and we are into metal cutting industries. We make a machine for manufacturing the metal cutting. We are fully a vertically integrated company. We have our own foundry. We do the machine shop. We do all components, physical manufacturing in-house over here. We have a CNC machine shop, paint shop integrated over there. We have our own family factory and fully controlled temperature and there. We produce the most precise world-class manufacturing facility that's been here. In terms of our key strength is in R&D facilities out there. All this is our design and development. We are able to do it within our Leonardo da Vinci R&D Centre, where we have a more definition of the engineers are working, designing and developing every day a new product over here. In the last two decades, we have designed and developed more than 200-plus variants out of 40-plus different verticals. We have developed really specific product baskets of today's middle of the hour part of the Industry 4.0. Our product is called the 7th Sense. It is a fully integrated design and developed over here. We have many, many AI-based tools we have called the PreciProtect. And this takes care of the complete machine through the real-time accident-proof machines to be there. And we have many, many solutions provided completely for applications for the industry as a part of that. So it is always a solution for our customer out there. In terms of our manufacturing capacity, let's say last year we were having 2,400 machines. And now with our new bottleneck and everything has been removed, we have reached to the second strand with close to 6,000 machines. And this is fully integrated into one plant over here. And we have one facility there in France. Similarly, we can do in the same plant this kind of multiple by three more fold. We can do that because of the space available in the existing plant. Huron is basically our technology platform. Huron has since the company has established since 1857. It is located in the Central Europe part, a place called Strasbourg. It's on the border of France and Germany, and very near to the world's most machining center as well as the world's most automobile and general engineering and highest precision manufacturing area in the central part of Europe there. Because of that, we have access to technology. We learn a lot of things from that to make the sophisticated five-axis machine, and with that, our product baskets and everything on a five-axis machine can all be large. Because of that, we have many aerospace companies to be there, and because of Huron, it's a very esteemed brand and brand value adding assets. More and more customers today are turning to us worldwide. We have a sales and distribution network. We have close to 49 sales and distribution centers across India. We have two distributors and dealers out there in India, and the rest of the areas are which is directly into the customers there. We have a customer base out there. We have more than 60 countries. Until today, in installation, it was more than 150,000-plus machines. Mainly in Europe and Asia, and even we have a big installation into China, Canada, USA, and Mexico. In terms of our end-user industry segments, I would like to highlight something more like that. The metal cutting industry is quite every segment of the part in manufacturing there. So we are covering aerospace, die and mold, automobile, electronics, railway, agriculture, infrastructure, oil and gas, healthcare, pumps and valves, power, gearing, and. We have divided, let's say, a total of our presence into entire value chain in part of the middle-level products where we have complete CNCs out there. In total, we have a 200-plus CNC out there. We have mid-range machines and we have high-level machines. We have divided these categories based on the value of the machines. That's up to the INR 50 lakhs machines we call the middle-level product. The mid-level machines we call the INR 50 lakhs and more than INR 50 lakhs. More than INR 50 lakhs to INR 2 crores is up to mid-range machines. Above 2 crores and all is called a high-end machine like that. Jyoti is the entire product basket there. In terms of our clients in aerospace, we have HAL, the Tier 1 systems, Airbus, Skyroot Aerospace, GE, the Boeing, Safran, Rolls-Royce, Ford, Porsche. In terms of automobile, you have all the names we have which is Mazda, BMW, Volvo, Mercedes, Audi, Volkswagen, Skoda, Kia. These are our. They are tied to that. We call the suppliers out there. In terms of the other clients, Shaktiman, ADA, Tesla, Bosch, we have more than 1,000 plus customer base out here basically there. Recently, in the last quarter, we were recognized by three different awards. One is Iconic Brand in India by our Times Group. The Economic Times has given this award. And another two was into a best product in the D&B award into different institutions in the entire world. Road ahead over here, India is in terms of manufacturing, is growing on a great speed over here. And our assumptions are like that in the next 5 to 7 years, Indian manufacturing is going to grow. Today is around 15%-16%. And in there, our government is looking to more than 22% in between 22%. There, the machine tools total growth has been anticipated more than 20% because CNC are only five to seven years here. India is, let's say, consuming close to $50 million worth of CNC machine tools in India today. Out of that, close to still 60% CNC machines to be implemented. There's our going forward with our opportunities out there. We have a vision of a mission is like that, propelling technology into live. With a strong management team, world-class infrastructure, wide product basket, strong R&D capabilities, large installation base, global footprint, and the legacy and technology from Huron, we are looking to be a very robust team in coming days. We have divided into this, let's say, four different categories. Today, category number one we call is automobile and general engineering. Second is aerospace. These two areas we are largely being established on. And the third area we are developing in terms of the order book that has been receiving significantly over here in coming days, this is going to be third vertical is called EMS. The fourth vertical that is going to be our future, and it is a nice area that all our R&D team is working. In the next two to three years, we will see a good revenue space in 2020 there. So these are our four going forward is in four vertical for our business segment over here. Right now, our growth engine is we are looking to be aerospace, EMS. It's now electric vehicle sector. And in future, we are looking to be the semiconductor industry to be here basically. In terms of the strategies for Leap 4, we are looking number one is to be people development. Number two is to be a product development. Three is a market expansion. Fourth is a manufacturing capacity expansion over here. In the people development, there's the key that we can challenge what we are going to create over here because the business is the way our order books are there and still the big pipelines are there. The key is that we need to ramp up in our execution capabilities and resolve the capabilities are directly related to the people. So we are working towards to develop our own excellence, center of excellence there that is going to develop this kind of people very quickly over here there. That's our one of the top strategies to be there. Market is always the new product which is every day is happening with the new challenges and all. Our R&D teams are making many products on like that. This year, we have developed three more products we call as a U5. It's called as Tachyon 4FT and TS120. These are the three categories of the product. U5 is basically aerospace machines. Tachyon is a new basically the product for the EMS and healthcare industries. TS120, this is the third product what we have developed for the automation. And more and more to a large production facilities out there. The twin spindle machines are there as well. Market expansion, we are looking to be entering. Now today, we are very good in terms of presence in India, in Europe. We are now looking to do U.S. there. Very soon, we will have some tech centers and our sales offices are going to be in within one year basically to be there in the market. Expansion into the U.S. there. Other areas like Thailand, Vietnam, and Indonesia. There also, we are working with some of our team over there. And we are looking to be more visible in that area also. In terms of the manufacturing capacity, it's going to be a big requirement. The way we have today's order, as well as we have a pipeline is available with us. And just now, we have completed our project and all. So phase one, we have reached close to 6,000 machines as in volume and capacity. And this, we are extending based on this our pipeline as well as our order books like that. Additional 10,000 machine capabilities we are doing over here. And on the same front and same geography over here, and these competencies, we are expecting to finish in the Q2 finished area this year and Q2 next over here there. That's it from my side. I think we will go forward on a question and answer session from here. 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 their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankur from HDFC Life Insurance. Please go ahead. Yeah. Hi, sir. Good evening. Thanks for your time. I have a couple of questions. One on the overall industry itself. Like you said, it's about a $3 billion overall machine consumption. You said about 50% is domestic. Within this, obviously, auto is a fairly large proportion. Given the slowdown that we've seen in the auto industry, how would you see growth rates overall? Or do you believe there are new segments like EMS, of course, is a fairly large upcoming segment? So if you could just help us, how do you see the overall industry maybe grow in the next one, two, three years? Within that, how do you see which segments are the largest growth drivers? And therefore, which ones help us in that regard? Yeah. Thank you, Ankur. Basically, in terms of the automobile industry, yes, is the biggest growth driver for any manufacturing industries. And for us also, in our segment over here also. But right now, in the auto and auto area, there is a lot of transformation happening there. And people are moving from, let's say, more and more on the EV side. There are a lot of new components that have been designed and developed over here. It's completely a new arena has been opened. And more and more hybrid-type people are moving there. And the more components are like that. So they require basically for our assumption like that, we are looking to be more consumption required in the next three to five years in auto area to be there. And based on this, all the government and all, people are looking to be more and more on the export side. All the component manufacturing is these people are exporting more and more. And then right now, in a China plus one, let's say many of companies are moving to join the parts in auto and auto industries also to be here there. So in terms of the auto numbers, it's stagnant in terms of consumption. In our inquiry level, in our order book, in our component manufacturers are still investing and their confidence is so high, so we are looking close to a good numbers are going to come. A growth rate, we are looking to be a 20%-25% on an auto and auto component machine also to be there in the next three-to-five years. Other segment, what is in India we are looking is to be general engineering. Okay, so general engineering, because of these exports and all are increasing, and a lot of manufacturing in other areas like that here, there we are seeing a good number of companies there. Of course, the third area is electronics, is completely a new area for all of us here and that is to be our growth driver to be there. Ladies and gentlemen, good morning and welcome to the Jyoti CNC Automation Limited Jyoti Automation Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions as this presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit Kumar. Thank you and over to you, sir. Thank you, ma'am. Good evening, everyone. On behalf of ICICI Securities, I welcome you all to the Jyoti CNC Q2 FY 2025 earnings call. Today, we have with us Mr. Parakramsinh G. Jadeja, Managing Director of Jyoti CNC. Without much further delay, I will now hand over the call to Mr. Jadeja, sir, for his opening remarks, which will be followed by Q&A. Over to you, sir. Thanks, Mohit. Good evening, friends. I'm delighted to explain the warm welcome to each one of you to the earnings call of Jyoti CNC for Q2 FY 2024-2025. Thank you for the level of trust and confidence you have placed in us in our journey so far. We truly understand the responsibility that comes with your investment and we promise to deliver the best of us. We can start with a brief presentation and have a question-and-answer session later. In terms of a consolidated financial performance of Q2, in terms of revenue from the operations from Q2 FY 2024, it was INR 302 crores plus one-third to INR 430.7 crores, almost a 43% growth in revenue variable here. In terms of EBITDA and the margin, let's say on FY24, it was 18% and is now today it's went up to 25%. In terms of EBITDA numbers, it was INR 54 crores. Now it's reached INR 6.6 crores. In terms of operationals upside, the quarter Q FY 2024, it was INR 16.8 crores and it has gone up to close to 352% and is up to INR 75.9 crores, close to INR 76 crores. And this revenue from the operations in the business, if you look at that out of this INR 431 crores, aerospace has contributed close to 38%. Auto and auto component, our vertical has contributed to be 39%. General engineering has contributed 15%. Die and mold has contributed to be 2%. EMS business has contributed 11% and others are almost 4% there. And the average price realization of our machines variable to close to INR 41.37 lakhs. And the number of machines what we have sold in this quarter is close to 1,051 machines this year. If I summarize for the H1 numbers, so H1 numbers from Q FY 2024 to Q FY 2025 is gone up by 54% and the total H1 numbers have reached to INR 793 crores almost over here. In terms of EBITDA, on H1 EBITDA last year was 14.6% and this year has reached to a 23%, 20% growth in stock. And the INR 200 crores EBITDA has been cut over here. In terms of the CapEx, last year H1 is close to INR 3.4 crores. It has reached to INR 127 crores almost to be right now. H1 performance in terms of our verticals, the aerospace vertical has contributed to be close to 57%, 53%. Auto and auto component has contributed to be 28%. General engineering is 17%. Die and Mold is 1%. EMS is 6% there. And in terms of revenue, it's divided into two areas. Like India, we have close to 55% and we have an export close to 45% there. In terms of the orders in quarter two of Q FY 2025, the orders we have seen are very nice. The orders we have received in this quarter, and in terms of numbers, INR 1,283 crores is the order intake in this quarter. After that, even aerospace we have received close to 22%. Auto and auto component is close to 15%. General engineering we have received close to 17%. Die and Mold is close to 1%. And significant movement we have seen in terms of EMS, which has reached to almost 15% over here, and others are 4% there. In our closing orders today, the opening orders was close to 3,200. Some 3 crores was there. New orders have been aimed to INR 1,683, and the dispatch has been removed, but not today. The visibility of the future ahead and the growth forward for us is to be looked like INR 4,289 crores orders today. In terms of the order book, total order book today, out of this close to INR 4,300 crores, aerospace is contributing now is to be 43%. Auto and auto component is 15%. General engineering is 15%. Die and Mold is 2%. EMS is reached to 17%. Others are close to 5%. Now we move forward to talk a little bit more about Jyoti. Jyoti is basically a first-generation business and we are into metal cutting industries. We make a machine for manufacturing the metal cutting. We are fully a vertically integrated company. We have our own foundry. We do the machine shop. We do all components, physical manufacturing in-house over here. We have a CNC machine shop, paint shop integrated over there. We have our own family factory and fully controlled temperature and there. We produce the most precise world-class manufacturing facility that's been here. In terms of our key strength is in R&D facilities out there. All this is our design and development. We are able to do it within our Leonardo da Vinci R&D Centre, where we have a more definition of the engineers are working, designing and developing every day a new product over here. In the last two decades, we have designed and developed more than 200-plus variants out of 40-plus different verticals. We have developed really specific product baskets of today's middle of the hour part of the Industry 4.0. Our product is called the 7th Sense. It is a fully integrated design and developed over here. We have many, many AI-based tools we have called the PreciProtect. And this takes care of the complete machine through the real-time accident-proof machines to be there. And we have many, many solutions provided completely for applications for the industry as a part of that. So it is always a solution for our customer out there. In terms of our manufacturing capacity, let's say last year we were having 2,400 machines. And now with our new bottleneck and everything has been removed, we have reached to the second strand with close to 6,000 machines. And this is fully integrated into one plant over here. And we have one facility there in France. Similarly, we can do in the same plant this kind of multiple by three more fold. We can do that because of the space available in the existing plant. Huron is basically our technology platform. Huron has since the company has established since 1857. It is located in the Central Europe part, a place called Strasbourg. It's on the border of France and Germany, and very near to the world's most machining center as well as the world's most automobile and general engineering and highest precision manufacturing area in the central part of Europe there. Because of that, we have access to technology. We learn a lot of things from that to make the sophisticated five-axis machine, and with that, our product baskets and everything on a five-axis machine can all be large. Because of that, we have many aerospace companies to be there, and because of Huron, it's a very esteemed brand and brand value adding assets. More and more customers today are turning to us worldwide. We have a sales and distribution network. We have close to 49 sales and distribution centers across India. We have two distributors and dealers out there in India, and the rest of the areas are which is directly into the customers there. We have a customer base out there. We have more than 60 countries. Until today, in installation, it was more than 150,000-plus machines. Mainly in Europe and Asia, and even we have a big installation into China, Canada, USA, and Mexico. In terms of our end-user industry segments, I would like to highlight something more like that. The metal cutting industry is quite every segment of the part in manufacturing there. So we are covering aerospace, die and mold, automobile, electronics, railway, agriculture, infrastructure, oil and gas, healthcare, pumps and valves, power, gearing, and. We have divided, let's say, a total of our presence into entire value chain in part of the middle-level products where we have complete CNCs out there. In total, we have a 200-plus CNC out there. We have mid-range machines and we have high-level machines. We have divided these categories based on the value of the machines. That's up to the INR 50 lakhs machines we call the middle-level product. The mid-level machines we call the INR 50 lakhs and more than INR 50 lakhs. More than INR 50 lakhs to INR 2 crores is up to mid-range machines. Above 2 crores and all is called a high-end machine like that. Jyoti is the entire product basket there. In terms of our clients in aerospace, we have HAL, the Tier 1 systems, Airbus, Skyroot Aerospace, GE, the Boeing, Safran, Rolls-Royce, Ford, Porsche. In terms of automobile, you have all the names we have which is Mazda, BMW, Volvo, Mercedes, Audi, Volkswagen, Skoda, Kia. These are our. They are tied to that. We call the suppliers out there. In terms of the other clients, Shaktiman, ADA, Tesla, Bosch, we have more than 1,000 plus customer base out here basically there. Recently, in the last quarter, we were recognized by three different awards. One is Iconic Brand in India by our Times Group. The Economic Times has given this award. And another two was into a best product in the D&B award into different institutions in the entire world. Road ahead over here, India is in terms of manufacturing, is growing on a great speed over here. And our assumptions are like that in the next 5 to 7 years, Indian manufacturing is going to grow. Today is around 15%-16%. And in there, our government is looking to more than 22% in between 22%. There, the machine tools total growth has been anticipated more than 20% because CNC are only five to seven years here. India is, let's say, consuming close to $50 million worth of CNC machine tools in India today. Out of that, close to still 60% CNC machines to be implemented. There's our going forward with our opportunities out there. We have a vision of a mission is like that, propelling technology into live. With a strong management team, world-class infrastructure, wide product basket, strong R&D capabilities, large installation base, global footprint, and the legacy and technology from Huron, we are looking to be a very robust team in coming days. We have divided into this, let's say, four different categories. Today, category number one we call is automobile and general engineering. Second is aerospace. These two areas we are largely being established on. And the third area we are developing in terms of the order book that has been receiving significantly over here in coming days, this is going to be third vertical is called EMS. The fourth vertical that is going to be our future, and it is a nice area that all our R&D team is working. In the next two to three years, we will see a good revenue space in 2020 there. So these are our four going forward is in four vertical for our business segment over here. Right now, our growth engine is we are looking to be aerospace, EMS. It's now electric vehicle sector. And in future, we are looking to be the semiconductor industry to be here basically. In terms of the strategies for Leap 4, we are looking number one is to be people development. Number two is to be a product development. Three is a market expansion. Fourth is a manufacturing capacity expansion over here. In the people development, there's the key that we can challenge what we are going to create over here because the business is the way our order books are there and still the big pipelines are there. The key is that we need to ramp up in our execution capabilities and resolve the capabilities are directly related to the people. So we are working towards to develop our own excellence, center of excellence there that is going to develop this kind of people very quickly over here there. That's our one of the top strategies to be there. Market is always the new product which is every day is happening with the new challenges and all. Our R&D teams are making many products on like that. This year, we have developed three more products we call as a U5. It's called as Tachyon 4FT and TS120. These are the three categories of the product. U5 is basically aerospace machines. Tachyon is a new basically the product for the EMS and healthcare industries. TS120, this is the third product what we have developed for the automation. And more and more to a large production facilities out there. The twin spindle machines are there as well. Market expansion, we are looking to be entering. Now today, we are very good in terms of presence in India, in Europe. We are now looking to do U.S. there. Very soon, we will have some tech centers and our sales offices are going to be in within one year basically to be there in the market. Expansion into the U.S. there. Other areas like Thailand, Vietnam, and Indonesia. There also, we are working with some of our team over there. And we are looking to be more visible in that area also. In terms of the manufacturing capacity, it's going to be a big requirement. The way we have today's order, as well as we have a pipeline is available with us. And just now, we have completed our project and all. So phase one, we have reached close to 6,000 machines as in volume and capacity. And this, we are extending based on this our pipeline as well as our order books like that. Additional 10,000 machine capabilities we are doing over here. And on the same front and same geography over here, and these competencies, we are expecting to finish in the Q2 finished area this year and Q2 next over here there. That's it from my side. I think we will go forward on a question and answer session from here. 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 their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ankur from HDFC Life Insurance. Please go ahead. Yeah. Hi, sir. Good evening. Thanks for your time. I have a couple of questions. One on the overall industry itself. Like you said, it's about a $3 billion overall machine consumption. You said about 50% is domestic. Within this, obviously, auto is a fairly large proportion. Given the slowdown that we've seen in the auto industry, how would you see growth rates overall? Or do you believe there are new segments like EMS, of course, is a fairly large upcoming segment? So if you could just help us, how do you see the overall industry maybe grow in the next one, two, three years? Within that, how do you see which segments are the largest growth drivers? And therefore, which ones help us in that regard? Yeah. Thank you, Ankur. Basically, in terms of the automobile industry, yes, is the biggest growth driver for any manufacturing industries. And for us also, in our segment over here also. But right now, in the auto and auto area, there is a lot of transformation happening there. And people are moving from, let's say, more and more on the EV side. There are a lot of new components that have been designed and developed over here. It's completely a new arena has been opened. And more and more hybrid-type people are moving there. And the more components are like that. So they require basically for our assumption like that, we are looking to be more consumption required in the next three to five years in auto area to be there. And based on this, all the government and all, people are looking to be more and more on the export side. All the component manufacturing is these people are exporting more and more. And then right now, in a China plus one, let's say many of companies are moving to join the parts in auto and auto industries also to be here there. So in terms of the auto numbers, it's stagnant in terms of consumption. In our inquiry level, in our order book, in our component manufacturers are still investing and their confidence is so high, so we are looking close to a good numbers are going to come. A growth rate, we are looking to be a 20%-25% on an auto and auto component machine also to be there in the next three-to-five years. Other segment, what is in India we are looking is to be general engineering. Okay, so general engineering, because of these exports and all are increasing, and a lot of manufacturing in other areas like that here, there we are seeing a good number of companies there. Of course, the third area is electronics, is completely a new area for all of us here and that is to be our growth driver to be there. So in terms of the Jyoti, our categories are like that, where we are here. Let's say we are looking to be 15%-20% in our auto and general engineering growth to be there. And the rest other growth we are anticipating to the two areas. One is aerospace and second is EMS there. I understand. And since you spoke about EMS, it seems we got a fairly large order in Q2, right? Almost, if I heard you right, about INR 500-odd crores order in Q2. If you could just talk about this order, is it the same customer delivery timeline? What is the current order book? How much of sales this year and next year? Just some more details, please. So basically, it is a similar customer base out here. We have now many. I have told you in the past also. Now, we have three or more projects out there. And every project has given us this distribution. And even the, let's say we are looking to be large number in terms of EMS, it still is to come, and it is going to come on a next year still. This is just the beginning over there. And how much of this current order book for the customer, sir? If you could share and what's the most likely? Yeah. Already, let's say, I have given the numbers for here. In terms of a, it's close to INR 700 crores now. And this would be over how much time? About two years? Three years? How much would this distribution take? This we have to deliver in one year. One year, okay. And just one more thing. On our overall budget share, just if you could help us on the CNC machine side, both on turning and moving, there would be such a budget share overall? So overall market share in terms of, let's say there are two areas like that. One is called as a number of machines, okay, and value-wise. So yeah, we are close to in terms of domestic share, if I look at that. So market share is close to 10%-12%. And in terms of total, let's say import and everything together, let's say our% is only a few% there. Okay. And also on contribution, sir, if you could just generally talk, I mean, is that maybe stable? Are we seeing any new trends here? Or is it still that same consolidated share where the top five, six players are controlling most of the industry? If you just talk about competition for the top 50 players. All are the same. All are the same people. All are the same manufacturers. Actually, in this industry, I'm the last one that came over here with a new company that is coming out here. Right. So the reason I ask is because when we last spoke to you, you spoke about this whole import substitution happening especially on the larger machines, sorry. So anything there that you would want to highlight? I understand on the EMS side, of course, the substitution is. Yeah. Definitely. Definitely, these EMS numbers with these aerospace numbers, what you are seeing, it's completely an import substitution at the beginning. So these are auto and auto component. In an entry-level product, the engine making tools, the market share is close to 80%-90%. And the rest are including. So in Jyoti, whatever the growth we are seeing is basically in the EMS also is completely an important area to be there. I get it. Okay. Perfect. I understand. Thank you. All the best. Yeah. Thank you, Ankur. Thank you. The next question is from the line of Harshit Patel, from Equirus Securities. Please go ahead. Hi, sir. Thank you very much for the opportunity. Hi. Hello. Yeah. So my first question is on aerospace and defense. We have received orders to the tune of close to INR 380 crores in the first half of FY25. I remember you had guided for an order to the tune of close to INR 1,000-1,500 crores for the full FY25. Do you believe we are on track to receive them? Absolutely. So these 1,000 crore orders, these are mainly Huron-driven, mainly export-driven, or does this include the domestic orders also that we can get from ordinary categories, the private players who are doing CNC in the? Both are there. Both are there. Okay. But 80% is going to be from the Huron-driven and mainly on export there in the Europe area. And the rest are we are looking to be in the Indian business towards there. And many customers in India have started procurement towards there. Sure. Sure. Just a follow-up to that. I believe we were doing some de-bottlenecking, some capacity expansion at the Huron level as well. Are those actually over? And now we are fully geared up to deliver those machines? That is, Huron's new facility is going to be ready in the end of this year, basically, still. It still is going on there. Okay. So by the end of the year, the Huron facility is fully going to be ready. Sure. Then what kind of revenues at the peak effect and over that facility can do when we would have completed this expansion project towards there? What are the peak revenues, basically, we can expect from Huron? Yeah. After this expansion, in Huron, we can see up to EUR 80 million to be there. Fantastic. Okay. So just a second question on this INR 400 crore capex that you have announced, which you will do last month, close to 10,000 machines. So which industry these machines will be aimed at? What kind of realizations we can do? What would be our peak revenues that we can achieve from here? These capacities will also come with the inherent backward integration that we already have attracted. So if you can give some more color on this capacity expansion, that will be helpful, sir. Yeah. So basically, we are expanding this 10,000 machines on our entry-level product over here. And let's say this EMS product is also an entry-level product. Of course, this is a functional integration through a turning, milling combination over there. Largely, what we are seeing, and we have a pipeline over here in EMS and with our customers and with the guideline what we have it. So we have dedicated of this almost 70%-80% over this facility. This for the range of the machine is close to INR 30-35 lakhs to be there. And this is completely based at Rajkot. So even expanding capacity in terms of the foundry capacity and machining and assembly and our peak metal facility to be there. Sure. So do we commission this gradually, I mean, phase-wise, or this will entirely come in one shot, let's say one and a half to two years down the line? How would you think? So basically, it will be ready in terms of a, let's say, in the first phase, it will be finished with the first phase will be finished, and we can have a capacity to again is close to 5,000. And the next would be like that. So within two years, it will be finished completely on a 10,000 machine. It is not going to be a halfway like that. The utilization will start in between over there. I understood, sir. Because we have the way we have an order book and all, so we need to ramp up our execution in the next year to be there. Understood, sir. That is very well appreciated. Thank you very much for answering all my questions and all the details. Thank you. I'll take my time with you. Thank you. The next question is from the line of Nidhisha, ICICI Securities Limited. Please go ahead. Hello, sir. Thank you for taking my questions. I have a couple of questions on the guidances that we have mentioned in the previous call. So firstly, on the order inflow, you mentioned that we would be getting orders of around INR 2,500-INR 3,000 crores. Now, given both the quarters, we are already close to 1,600 crores, which is sort of higher than the upper side of the guidance. Would you like to revise that guidance for the order inflow of the quarter of the year? Sorry. No, I don't want to revise that. I want to be clear where what I anticipated, and we are going to be delivered that specifically. Would that indicate then that we would probably not be able to do more than about 12 to 14 more in order inflow, 12 to 1,400 more in the remaining year? Or is it that we are just being conservative about the order inflow? What guideline we have given, we will maintain those things. We'll be there. All right. And also on the revenues, the previous quarter you had mentioned that you would have to deliver similar level of growth. Now, obviously, this quarter has been a 55% increase in the sorry, a 45% increase in the top line, which is nowhere close to the 75% that we saw in the previous quarter. So again, for the full year, what numbers are we projecting in terms of revenues and tax? I cannot give you that. I have to pass the number to you there. But you can see that in something like that, quarter to quarter. You have to look at that as Jyoti to be quarter to quarter of the last year there. And you will see the growth on every quarter here. All right. All right. So can we then again, I know you mentioned that you cannot really say anything, but can we assume something like INR 2,000 crore or INR 2,400 crore type of number for the full year? I'd say yes. And you can say your guided like that, okay? All right. All right. Lastly, I just had questions on the EMS. So these EMS machines, as you mentioned, they are on the smaller side. So does that mean that these what is the margin profile like for these machines? Obviously, now the order book is increasing for this segment. How will we see the margins play out when these EMS orders are executed? Will the margins increase or decrease? So we have a balance on that, on a product mix there. So we have in contrast that, let's say, even in a past call, I have given you that I have two categories of the product line. One is entry-level product, mid-range, and high-end machines. So in an entry-level product, I have a, let's say, the gross margin is coming to be close to 40% there. And mid-range is 45%. And large machines are close to 45% there. So with this mix, whatever the margin we are maintaining today, I think we will maintain the same profile in coming days over there. All right. All right. Thank you so much. Thank you. Thank you. The next question is from the line of Sanidhya from Unicorn Asset Management. Please go ahead. Hi, sir. My question would be on this capacity expansion that we are doing. So it gets me INR 400 crores expansion in two years. And we are also seeing that we are going to raise internally and externally. So I think our cash flow will be sufficient enough for this year. This is sufficient enough to fund at least more than 50% of what we are planning. And while two years, right, not everyone has been paying financing. If the two years is like that, let's say it's two financial years, basically. So the one financial year is this and next financial year of coming year. So based on that, that's specifically there. And internal and external both are being taken because almost we are going to do with our internal accruals only. If any timing mismatch are there and if we require something to borrow there. So we have put up over there into that. But most of these things are going to be internal accruals only. We have to get internal accruals to match with our gross to be there. That would be that, right? No, it's okay. Definitely. We'll have a short time line we will use. Most probably, it is not being required. But while we are planning, we should definitely tell to so we have less internal or external. But it is not raising the capital there. It's only because my numbers are speaking we will have sufficient headcount for that. Can we assume that FY 2026, the entire kit has to be completed before the year end and? Absolutely. Absolutely. So why is the delay in terms of the bottlenecking, de-bottlenecking that you are doing? So if I see currently you are stating for 85% of capacity utilization this quarter. And if I do the number, I am sure we didn't use the additional 1,600 machine capacity that we are going to be working. So what took so long to do that? No, no. It's a time. It's a construction, the installation, the equipment, and repair that can do what we are doing. It's a fully automated and style like that. So the installation capacity time is required, basically. The execution time is required. I'm ready to do it if anyone's able to establish my plan for 15 days. I'll be mostly able to do it. Okay. Can I assume that now that we are done with 85% utilization of 6,000 machines, can we do for the next two quarters? You can assume like that. That's why we are expanding the capacity also there now. Yes, definitely. Sorry, last time on the TV interviews, you said we would be doing more than INR 1,000 crores of revenue. Looking at the current timeline, it looks quite different. Anyway, on the component, maximum push that we can do on the average realization per machine? Today, average realization what we see is INR 1,000 lakhs. In terms of our order book today, it's close to INR 50 lakhs. In the next couple of quarters, we will see the rising average there. Even after the EMS boom, because you were speaking that EMS would be INR 25,000 crores per month. We have a combination of that. Execution is going to be. We have a large order book that we are and the machines are in five. So aerospace machines are going to be. It's a combination of the model there, basically. And what kind of capacity utilization can we expect for next year since the capacity would start coming in? So not the entire would come, of course, in the initial setup of FY 2026 day. So how much do you think would come in and what utilization do you think? So it's basically when the facilities are being ready, based on that, we have to let me calculate the numbers next year. I don't want a number. Definitely. Just lastly, if I see the order book currently sell is for 2,000. Yeah, yeah. You are right on the track that what you are asking there. Okay. Only think that, let's say, if my capacity is 5,000 machines ready by December or like that, based on that numbers, I need to be calculated and given. We are looking to be as fast as possible to capacity could be enhanced over the year there. Definitely. We will have more calls and we can understand what's going on. Just lastly, on the order book side, so 4,200 is the current order book. We are expecting that to complete in like 12 to 18 months. So may I say that 4,200 is what we can execute in next financial year completely and some additional as well? Based on the capacity, let's say, the ones of my capacity will be installed will go faster there. Yeah, because my numbers are saying that we can do if we have additional capacity. So what is your understanding of that? Yeah. Let's say, if anything, I'll give you the numbers. It will go into the forecasted numbers I'm going to give you. You are on a track. You are right on that. Okay. Thank you. Thank you so much and all the very best. All the best. Thank you. Thank you. The next question is from the line of Kamlesh Jain from Lotus Asset Managers. Please go ahead. Yeah. Thanks for the opportunity. And congrats Jyoti CNC for executing what you have been telling. And this capacity addition demonstrates your capacity. Sure. Sir, one question on the part of cash flow. If I see you had a 90-odd crore negative on the other financial assets, which I believe is more of an unbilled revenue. Because last year, it was like the March 2024, it was 180 and it has almost increased by 100-odd crores. So I believe it's more of an unbilled revenue, which we have for the EMS. Correct. Absolutely right. Yeah. So when are we going to realize that? We know that machines would be in the testing phase and all that, and you have the pain over the last many years, and you have established that you have a big supplier there, big buyer there. So how the thing would be there on that part? So basically, you will see these numbers are going to be decreasing in the next couple of quarters now. Because the large machines, you know that every machine is very big machines and all. The number of machines are in the pipe there. So once it's been dispatched, and we are looking to be a large dispatches are in quarter three and quarter four. So, at the end of quarter four, you will see this number will reduce drastically to be there. Great, sir. And sir, secondly, on the part of your expansion, if I understand correctly, you will get this capacity done by December 2025. Is it correct? The entire 10,000 incremental capacity? Planned on the entire. Okay. Okay. And sir, if I see EBITDA per machine, let's say it has come down to INR 1,000,000 now for this quarter. So going forward, what objective can we see on EBITDA per machine? Because EBITDA per margin won't give that particular picture because you are, let's say, the share of the EMS and all those machines mid-level or it would continue to vary. But on EBITDA per machine, so where do we see that settling in? So I told you that 25% is an average margin, okay? That we are maintaining and we are going to maintain forward also. The average is INR 3 lakh plus. You are right there. We will maintain on that track. Okay. Around like INR 10 lakh, which is the current market. Yeah. Correct. Okay, sir. Thanks a lot. Thanks for the interesting question. Thank you. The next follow-up question is from the line of Sanidhya from Unicorn Asset Management. Please go ahead. Thank you for the question again. Two questions. Just on the year-end, you were saying that for the last two quarters, we have been saying that capacity will be completed in September. Now you're guiding for the year-end. What kind of data are we seeing and do you think, specifically, that we are getting there? In Europe? Yeah. In Europe. Yeah. So basically, the capacity, the assemblies and everything is we were initially going to look at to be December. But still, we are crossing our fingers. But there are some delays that are going on there. And the installation of the equipment and everything is being delayed. But most probably, this facility will be ready somewhere in end of December or middle of January to be there. Sure. Nothing worth highlighting like 15% or 10%? Nothing is anything, not anything that's unspecified. Okay. And I was looking at the annual report. So we had some unbilled revenues with the other customers from the home. So you're saying that would slowly try to come in the CPC? Correct. And just about that, there is an interesting commission available from subsidiaries. And if I look at these numbers, so we have some investment in subsidiaries like U.S. We have some growth investments. And other things also, we are doing some investments in. What kind of investments are these? Basically, this is what we are expanding this facility. Okay? So this facility building is under construction there, now what we are discussing. And going to be finished in January to be there. Okay. So no, I don't understand what's the interest income receiving from these. No, no. You say the investment there, correct? Yeah. So if I go on the page 149, 148 on the annual report, there's a section for other commitments. Basically, until today, Jyoti has fully supported from here, okay, in the last 15 years. And whatever our investment has been made over there, as per our Indian guidelines, we need to charge interest to be there. And all whatever we non-fund based limits and everything, we guarantee. And so guarantee commission also to be taken from them, basically. And Huron was not making a profit over there. So they are not able to pay us in the past many years there. So that is the accumulated incomes are lying there, basically. Sure. So what is Huron SAS's plan for this annual? So Jyoti SAS is a 100% subsidiary of our SPV to acquire this Huron Graffenstaden and there. So Jyoti SAS is a 100% subsidiary of Jyoti, and he is holding the 100% Huron Graffenstaden and there. Okay. So the investment in the Jyoti SAS book would be the Huron investment? Okay. It's a Huron investment. Okay. Interesting. Thank you. Great. Thank you very much. Thank you. Ladies and gentlemen, you may press star and one to ask a question. Reminder to all participants, you may press star and one to ask a question. Next question is from the line of Swanand Samant from Clay X Securities. Please go ahead. Hey, hi sir. So my question was on the competitive landscape, right? So most of your competitors are on the unlisted. So you have been very aggressive on capacity addition. So just want to get a sense on how the competition is also on the capacity addition part. And second, again, that is on the order inflow side, right? So has the competitive intensity increased in general with the CNC machine? If the capacity has been growing at 20% plus, right? So how has the competitive intensity in general has been increased in terms of order tenders or client addition? Any sense on that would be helpful. So basically, if we are a main three to four competitors here, there is no add-on. Capacity has been added on there. Based on the India is increasing the capacity, let's say the India is consuming more and more machines. There is a high capacity still because suddenly the spikes are coming. Always imports are increasing there. Other than me also might be all other manufacturers also. Competitor also might be in a near term will also invest and expand the capacity there. There is a great opportunity to add to all of us over here. Okay. This intensity, has it increased in terms of if we have added capacity? Do you find it still difficult to get orders from your clients? How has the competitive intensity has changed? No, it's not that much has been increased. Still, there is a we have a great room to compete to import machines there. So there is a great opportunity for us to compete to the, let's say, the people are enjoying the business today, we have to compete to get there. Okay. Got it. Thank you. The next question is from the line of Jignesh Varga, Jiva Capital Limited. Please go ahead. Yeah. Thanks for the opportunity, sir. Sir, I wanted to understand on the CNC front, since you mentioned you have 140 people in R&D division. So I presume the machine control unit, the world over is only used for three to main companies like Fanuc and all. Sir, are we in the process of developing that machine control unit from our R&D division, and how soon can we reach there? Thank you. Nice. That is the dream for us for the future. So already our teams are working, and we are expanding this team rapidly over here. We are expecting to develop something in the next two-to-three-year pipeline over here there. In the next future, we are going to be having a more investment plan towards where the CNC controllers drive and more systems there. Oh, right, right, right. That would be, I think, really help in increasing our margins greatly. So basically, we are looking to be our core. Our core business today is a mechanical part today. And Jyoti's vision is to be there. Our core should be mechatronics to be there. Okay? So mechanical and electronics combination, and many more opportunities are opening for us over here. But definitely, these parts are in our radar there. And we are looking to be a good investment on coming days to be there. Right. Sir, on the semiconductor front, which is our future area, how are we? How is Jyoti kind of to have this opportunity to scale up going forward? So right now, we already started many products on our drawing board. And we are putting up more R&D team in the coming days over here. So that is going to be a great opportunity in the coming days over here. So right now, two to three products we are designing. Once prototypes and everything will be done, we are working very closely with two to three manufacturers from over here. We are directly in South Vietnam, and we wanted them to move faster. But this is also a new business for us. So the design and developing time is a long time over here. So we are anticipating the business we can see somewhere in 2026 over here. Okay. So some revenues would start flowing in? Yeah. Yeah. Yeah. Right. It's a large opportunity we are opening up over here. Right. Understood. Sir, with AI coming up and our machines integrating with the entire software like SAP with your client, so kind of scheduling or kind of parts production, is it already done or it is being scaled up? No, no. Right now, what I told you in my presentation that our product code is at 7th Sense. So there you can do your factory automation and completely you can tracking, monitoring, and scheduling all the product like similarly to SAP there. Okay? Even in a quite better in terms of user-friendliness and all because it's completely on a software requirement to schedule and planning. Okay? So that is an integrated part of this our product to be there. I think this 7th Sense kind of products would be more of a use in the EMS industry. No, no. Every manufacturer there. Understood. Thank you, sir. Thank you. The next follow-up question is from the line of Sanidhya from Unicorn Asset Management. Please go ahead. Thanks again. Sir, if we look at your guidance for this quarter, is it safe to assume we will have a revenue of INR 55 crores? Management or if you can give any other number. Yeah. In the second quarter, it is close to INR 70 crores. Okay. INR 70 crores. And what is the utilization for Huron? So the Huron is there. Let's say our current capacity is close to 40-50 million EUR there. And this is almost more than 80% of that. Okay. And the additional capacity by year end, we would like almost 15-80 sites there, right? Right. Almost the capacity is going to be at full, but we are expecting to be 1.5 in the next year. Okay. And secondly, on the EMS, so we receive 7% orders from the EMS this quarter. So is it only from the one player or is it divided between two players? So that I want to ask. And without naming any clients, just from the specification. So let me say, basically, two to three projects are there. Okay? And in all projects, we have different clients there. Okay? Okay. And on the side of. So we are hearing that display manufacturing is also starting in India, one of the players starting there. So are people buying from them as well? Display manufacturing there? Yeah. Yeah. Yeah. And for IT, DLI who is with? What is the question? For the IT hardware, is laptops, notebooks, all that? So right now, let's say we can say that today is in mobile and TV and a watch and even the computers. Yeah. These are our end users are making there. Okay, so not just the notebooks as well. Any plans to go there? So, already we are working with them, and trials are going on. We are looking to be inclusive to be a notebook facility there. Okay, so hopefully by next week, you will get to work with them. I told you that EMS is going to be our target area, and we are working with the many of them, and one by one, it will be covered. It's a large U.S. site, so are we planning any clients from that side? The world looks like maybe moving to manufacture in the U.S., so if the story is to develop, are we in the right place? Basically, because of the Huron, and now we have a capacity increasing in Huron, and we have now a capacity in more models have been increasing here in India. And we are very competitive over here world, let's say, on the scale. And U.S., in terms of the aerospace, is the largest consumer there. Okay? So increasing our market portfolio and reach out to more customers in India, specifically there. And do you have any facility in U.S. or warehouse in any way? Yeah. So we are going to create our technical center and a warehouse there. In the U.S.? Yes. Yes. Any timeline? So within one year there right now. We are getting any inquiries for the same that we are entering into there? Yes. We are entering into many of our large customers over here, our existing clients. And they are asking us to come over there. We are looking to support them nearby there. Do you see any impact on inventory and anything at all if we went into that? Maybe they want in time to do something. So we might need to do something. No, it's not like that. It's not like that. But while we are making the machines to be there on the tech centers, okay, as on demo centers there. And entry-level product, what we are making over here, those kind of products only we need to be a top-to-tail factor to be there. Because in U.S., people are looking to be delivery very fast over here. Yes. Exactly. That's my point. Because for anything that we ask, they are always keeping the U.S. there. We need to be some inventory so that we can deliver fast. Absolutely. Absolutely. Okay. Thank you so much and all the very best. Everything looks to be good. Thank you. Thank you very much. Thank you. The next follow-up question is from the line of Jain from Lotus Asset Managers. Please go ahead. Yeah, sir. So I believe 10,000 capacity expansion is going to be there in a year's time. But over the next three, five years, what particular capacity levels we are targeting? I suppose this expansion we would be 60,000. So going forward, what is our end target in next five years? What particular capacity levels we are going to target on or embark on? See, the capacity we are installing is basically to utilize as much as possible faster to be there. And the ones that are expectation will be increased better and better. We would like to utilize more there. But in terms of this is our phase two. In the next five years, this is not going to be sufficiently there. Okay? So definitely, we need to expand further to be here there. Because over the quarters you have, I like it that the way that China has gone in the value chain with regards to the EMS side. So similar levels, can we say that it can be 30 or 1,000 capacity by, like I say, by FY 2028, 2029? So just wanted to get a sense on that. Yeah. Basically, you are right. We are looking similar numbers to add on there in the near future to be there. Great. And lastly, sir, can you provide the break-up between entry-level, mid-level, something in terms of machines sold and average realizations that you provide for every company? I can. Let's say, in terms of entry-level product, we have 934 machines. And the average of 21 lakhs. Mid-level machine was close to 88 machines. And the high-end machine was close to 19 machines. So total close to 1,042. Okay. And 2.1, 21 lakh machines was entry-level and mid and high-level? Yeah. Mid-level, the average was 1 crore, 1 lakh. And the high-level machine average is 5.8 crores. Great, sir. Thanks a lot. Thank you. Thank you. Ladies and gentlemen, you may press star and one to ask a question. Reminder, all the participants, you may press star and one to ask a question. Participants, you may press star and one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you very much to all of you. The way you have put questions, we'll do our best over there. Thank you very much. Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.