JNK India Ltd (NSE: JNKINDIA) Q3 2025 Earnings Call dated Feb. 18, 2025
Corporate Participants:
Arvind Kamath, — Chairperson and Whole-Time Director,
Pravin Sathe — Chief Financial Officer
Analysts:
Akshit Gangwal — Analyst
Mohit Kumar — Analyst
Nidhi Shah — Analyst
Charanjit Singh — Analyst
Mohit Jain — Analyst
Aashna Manaktala — Analyst
Mahesh Pendre — Analyst
Varun Mohanraj — Analyst
Sunil Jain — Analyst
Raj S. Vyaz — Analyst
Anshul JT — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The JNK India Q3FY25 earnings conference call hosted by IIFL Capital. As a reminder, all participant line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Akshay Gangwar from IIFL Capital. Thank you. And over to you sir.
Akshit Gangwal — Analyst
Thank you, Sejal. Good afternoon everyone. On behalf of IFL Capital, I welcome everyone to JNK India’s 3Q FY25 earnings call. We have with us today Mr. Arvind Kamath, Chairperson and Whole Time Director, Mr. Praveen Sathe, Mr. Chief Financial Officer and Ms. Annie Varghese, Senior Manager, Investor Relations. Without further delay, I will now hand over the call to the management for their opening remarks which will be followed by Q and A. Over to you sir.
Arvind Kamath, — Chairperson and Whole-Time Director,
Thank you. Akshay, this is Ardhan Kamath here. Good afternoon everybody and welcome to JNK India Q3FY25 earnings call. I sincerely appreciate your time and continued interest in our company. The third quarter FY25 was centered around project execution with several key assignments reaching their almost final phases. Although revenue recognition was lower during this stage due to milestone based billing, while fixed costs remained high impacting our margins. While the quarter did not see major order inflows, our commitment to efficient execution remained Strong. For the nine month period of FY25, total revenue was 295.1 crores reflecting almost 16% year on year growth. As of December 31, 2024, the order book was 1226 crores providing a strong revenue visibility and reinforcing our execution pipeline going ahead. Entering quarter four FY25. The momentum has picked up with a significant order secured in January 2025 from JNK Global Co. Ltd. Korea. This contract for the Pengarang biorefinery project in Malaysia includes a residual engineering, procurement, fabrication and supply of critical fire heater along with assistance in erection, commissioning and performance. This order represents another step in strengthening our global presence and demonstrates our ability to win high value international projects as this will be the first order for JK India to Malaysia. Financial strength was further reinforced with an upgrade in our credit rating by CRISIL in January 2025. The long term rating improved to A from the earlier BBB while the short term rating has been upgraded to CRISIL A2 from CRISIL A2. This enhancement reflects the company’s sound financial discipline, operational efficiency and ability to scale effectively. Looking ahead, our confidence remains high in trying to achieve a significant revenue for the fourth quarter FY25. Supported by a strong order book, strategic diversification and a focus on operational excellence, the company remains committed to executing ongoing projects efficiently, expanding into new markets and delivering long term value for all stakeholders. I will now hand over to our CFO Mr. Praveen Sathe to provide a detailed financial overview. Thank you.
Pravin Sathe — Chief Financial Officer
Thank you Mr. Kamath and good afternoon everyone. This is Praveen Sathe, CFO of JNK India Ltd. I am pleased to present the financial performance of JNK India for the quarter three and nine months of financial year 25. For the nine months ending December 31, 2024, total revenue increased by 15.6% year on year to INR295 crores supported by steady project execution. Operating profit came in at 98.2 crores with a margin of 33.3%. EBITDA for the period was 37.3 crores with a margin of 12.7%. Profit after tax was 17 crores with a margin of 5.8%. During Q3 FY25, the total revenue reached. 96.9 crores reflecting 9.7% sequential decline. Operating profit for the quarter was 29.3 crores with a margin of 30.2% while EBITDA was 9.75 crores with a margin of 10.1%. Profit after tax was 2.8 crores with a margin of 2.9%. This quarter primarily focused on project execution with several projects in the final stages where fixed cost remained the same but revenue realization was lower. It has impacted margins as a result. EBITDA margins were moderated due to the cost absorption along with the higher employee benefit expenses which includes ESOP related costs. However, it is important to note that ESOP related cost will conclude by the end of FY25 providing a clearer margin outlook moving forward Heating equipment continues to dominate our order book at 82% with best gas handling systems and process plants contributing the rest. Geographically, 92% of our orders remain domestic while international markets account for 8% of the order book. While Q3 was largely an execution focused quarter, we remain confident about achieving the targets for FY25. Our pipeline remains strong and we expect the execution momentum to pick up in the coming quarter. Looking ahead, JNK India is well positioned to capitalize on industry growth and we remain committed to delivering value to our stakeholders. In closing, I would like to thank you all for your time and continued support to JNK India. We now welcome any questions. If you may have.
Questions and Answers:
Operator
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 touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yeah, thanks for the opportunity. My first question is of course you did mention about the Q4 should be a better quarter, but I would like to dwell on that more. How do you think about the execution in Q4? I think you had mentioned that you can still execute the entire opening order book of F24 which was roughly around 6 billion for the full fiscal. Are we still maintaining that?
Arvind Kamath,
Our opening order book was 620 crores? And in the last earnings call we did mention that our endeavor is to execute the complete order book in this financial year. Now certain projects have got delayed due to various reasons which are not under the control of JNK India. So we might suffer a reduction in the target by say 10%. And moreover the projects are of PSUs and there are export orders also. So roughly 10% reduction expected in the targets that we had placed before us for this fiscal.
Mohit Kumar
Understood sir, that’s very helpful. My second question is with ebitda margin of 17% and 21% the last of fiscal and do you think given whatever we are expected to execute in Q4 we can achieve those margins in FY25E before ESOP expenses? And what about the ESOP expense for the nine months?
Arvind Kamath,
Yeah, if you see the EBITDA margin for the nine months before ESOP expenses was around 15.21% and after ESOP it was 12.7% and that ESOP cost would go away in March 25th. So far as the comparison with the previous year is concerned, Definitely the margins were 2, 3 points higher than what general guidance that we had given initially of 17 to 18% this year due to various reasons due to increased cost, increased direct cost also and increasing number of employees. The post listing effect of the ESOP reserves we see that the guidance would come down by three to four points.
Mohit Kumar
Understood sir. We had a very good Q1 in terms of order inflow I think it was a superlative quarter. But after that Q2 was like Q2 still had a decent order but Q3 has been hardly any order. How do you think in this context about the Q4 and next 12 months? How is the pipeline and prospect looking at Looking like.
Pravin Sathe
Yeah, hi Mohit, Though the pipeline looks actually very good including India and. Exports, you know, as we started off, yes, quarter to quarter finalization varies considering the size and the quantum of the projects which we bid. So it is generally not uniform as we told last year as well. So it could come in one of the quarters significantly and some quarters it could be a bit slow. But yeah, this quarter also there is a, at least a finalization of two important opportunities and going ahead for six months. Also the pipeline in terms of the order inflows or the order pipeline is very healthy, I must say because you also might be aware there are also significant projects announced in India as well in terms of the petrochemical opportunities, including bpcl, Bina, iocl, Paradis, Petronet, lng. In all of these projects we have already received the inquiries and some of the projects we already submitted the offers and some inquiries are received and we are in the process of submitting the firm proposal.
Mohit Kumar
If I can ask again, sir, do you think a lot of these opportunities will materialize in CY25 in terms of finalization of orders? You know, not for you, for the industry, anything in general. Do you see the financial what is happening for the industry so that we can benefit? That’s the question. How do you think they could be some delay FY25? No, no, sir, I’ll just. As a rephrase, sir, given that you just spoke about so many opportunities.
Arvind Kamath,
Yeah,
Mohit Kumar
Think in your opinion a lot of these orders will finalize, get finalized in CY25 or we can see an delayed, you know, delayed financial order, which means the CY25 could also be a weak year. That’s what I’m asking.
Arvind Kamath,
Yeah. I mean actually even last year we were in a similar situation. So there are about two to three proposals which the price bid could be opened anytime and the order finalization could, you know, take place either in this quarter or it could happen in the first quarter of Qi 26. It becomes a bit difficult for us to exactly kind of plan focus.
Mohit Kumar
That’s very helpful. Very, very helpful. Thank you.
Arvind Kamath,
Thanks Mohit.
Operator
Thank you. Before we take the next question, a reminder to all the participants that you may press STAR and one to ask a question. The next question is from the line of NIDISHA from ICICI securities. Please go ahead.
Nidhi Shah
Thank you so much for taking my question. Firstly, my question is on again, the ordering. For this quarter particularly what was the reason why we saw almost. Can you please repeat your question because your voice is cracking. Am I audible now?
Arvind Kamath,
Yes, please.
Nidhi Shah
Yes. So was there like an ordering, like, like an ordering stop in the industry in this order? Is that the reason I did not see any orders coming this quarter or is it that the finalization is getting delayed?
Arvind Kamath,
Yeah, no, the finalization has been delayed and we actually didn’t lose any significant order in the last quarter. That was your question. I mean if I got it correctly.
Nidhi Shah
Yeah,
Arvind Kamath,
Yeah, yeah.
Nidhi Shah
I would like to know what are the opportunities for BNK Global, how these opportunities will pan out Global and then probably could transfer over to us.
Arvind Kamath,
Yeah, I mean as I said the opportunities pipeline is quite large. Like as I just said, we received the first opportunity for Malaysia. So same way we have big pipelines for many countries including usa, Algeria and also in Middle east other than India. And in India there are, you know, projects which are already announced which we have received the inquiries as well. Yeah, which I already mentioned in the earlier message. Yeah,
Nidhi Shah
Last thing, just if you could corner the value for the EOPS that has been there for nine months.
Arvind Kamath,
We are unable to hear you.
Operator
Please use your handset due to no response from the current participant. We will move on to the next participant. The next question is from the line of Charanjeet Singh from DSP Mutual Fund. Please go ahead.
Charanjit Singh
Hello sir. Yes sir.
Arvind Kamath,
Hello. Yeah,
Charanjit Singh
So sir, while you’ve talked about, you know, the prospect pipeline is pretty strong. So if you can just quantify the prospect pipeline and generally what is the kind of hit rate which we have seen, you know, in terms of these order finalizations. That’s my first question. And second is you also talk about certain new businesses which you are targeting. What are these new businesses and are they included in the prospect pipeline or you think that they will be on top of that as we see that overall. Pre qualifications, picking up in the new businesses. Those are the two questions, sir.
Arvind Kamath,
Yes. Yes, Mr. Singh. So basically the bit pipeline is around in terms of the value. It is about 4,000 crores for exports and it’s about 4,000 crores for the domestic as well. So that’s the kind of bit pipeline we have which is expected to get finalized in next about say six to eight months or so. That’s the, you know, once we bid, that’s the timeline for finalization. So this is the kind of opportunities we have quoted for and mainly in the product lines of fire eaters, deformers, cracking furnaces, flares. And in terms of the new opportunities, you know, not much is included in this pipeline. So the other pipeline for hydrogen plants and also some of the CBG units or incinerator which is a new product line, that pipeline is not so large as of now but it could be to the extent of about 200, 250 crores. And our traditionally hit rate has been around 20% or so in terms of the orders finalized, 20 to 30%. So we, you know, kind of, we are quite sure that we will be able to maintain that hit rate going ahead as well. So sir, this 20% hit rate is, you know, for the domestic or for the export. How is that different? Sir, it’s generally for both put together.
Charanjit Singh
Okay. As you also touched upon, you know that there’s a strong pipeline in US you know, market. So what are the kind of prospects there? And you know, with a lot of emphasis which is going to come on the oil and gas space in the US market where JNK generally operates in a big way. How you see that, you know, market just now maybe going to shape up in the future.
Arvind Kamath,
Yeah, US is yes, as you said, it is a very important market and we are not really even including Korea has not done practically any business in USA whatever. We received the order in Q2 of FY25 was the first order for us east from J and K for a fire debtor. And now we have about two proposals through large EPC contracting companies for the projects upcoming in US and now more prospects we should be able to see with the new project coming up further. But these two are also a good size of projects and. And I think they would probably finalize in next about five to six months. So in the pipeline of the, you know what I mentioned, exports, these two projects in US also are included.
Charanjit Singh
Okay. And so lastly from my side, in terms of, if you can highlight one, what could be our expectation in terms of the growth going forward for the next financial year, looking at, you know, all these prospects getting, you know, concluded and in terms of the margin also if you can touch upon, you know, how we should look at the margin going forward in the next financial year. See as of now our order book position is 1220 crores.
Arvind Kamath,
So at the end of March end. So the order book position would definitely be above 1000 crores. So you know, it depends on what is the order inflow in this quarter. So we would definitely have to, you know, gear up and deliver the growth far better in next year because this year it has been little bit fallen short of what we wanted to deliver. So this, whatever the shortfall is there, we will have to catch up in the next year definitely because we also have a committed delivery timeline with the customer as well. So considering that we look, you know, whatever the original projection for FY26 is there, so I think we should be able to maintain that.
And in terms of the margin profile generally, traditionally we have always told that our margin is anywhere around EBITDA of 17 to 18%. And that’s the EBITDA we should be able to maintain going ahead as well. So whatever the EBITDA change which happened in last year and this year, it’s due to certain reasons. But now we would be should be in a position to maintain a pretty uniform EBITDA as well.
Charanjit Singh
Got it, sir. So thanks a lot for taking your question. That’s okay.
Arvind Kamath,
Yeah, thank you. Thank you.
Operator
Thank you. The next follow up question is from the line of Nadisha from ICICI securities. Please go ahead.
Nidhi Shah
Hi. Am I audible this time around?
Operator
Yes, ma’am.
Arvind Kamath,
Yeah, better.
Nidhi Shah
Thank you so much. I wanted to ask, could you call out the rupee amount for these for the nine months and what we’re expecting for what are you looking for? Nine months? Nine months. We, we could hear a part of your question. What is the ESOP in, in rupee value for nine months and for full year?
Arvind Kamath,
Yeah, the ESOP reserve for this nine month. Months is 7.51 crores and for the entire year it would be around 10 crores or so. So about two and a half crores more in the last quarter.
Nidhi Shah
Okay, thank you so much.
Operator
Thank you. The next question is from the line of Mohit Jain from Chris pms. Please go ahead.
Mohit Jain
Hello.
Arvind Kamath,
Yes please.
Mohit Jain
Yeah, thank you for taking my question. Sir. So my first question is on the working capital. How is the working capital cycle shaping us?
Operator
Sorry to interrupt sir, I would request you to please use your hand. Sir,
Mohit Jain
Can you hear me now?
Operator
No sir, can you hear me now? Yes,
Mohit Jain
Now.
Operator
Yeah.
Mohit Jain
So how is the working capital cycle shaping up for us? And are we seeing any relaxation in the receivable side also? Sir, I believe we were facing some issues in the collection from esus. So sir, can you throw some light on this?
Arvind Kamath,
Yes, surely. See typically we have seen that our working capital cycle have been in the range of 120 to 140 days. At some stages it got stretched up to 160 days also. But ideally it should be around 120 days going forward. And if you see the receivables from the PSUs also we have improved on the receivable days also. So in spite of the client being PSUs, we could now, you know, get after them somehow and push them to release our payments little faster than what they used to be in the previous year. And our utilization on the working capital lines has also considerably reduced. So that will show that the working capital cycle has improved because the interest cost that we have borne for this quarter, that Q3 is hardly 20 lakh rupees as compared to the Q2 interest cost.
So this shows that we are using the working capital lines also optimally. So things are improving for the better going forward. We see working capital cycle somewhere between 120 to 130 days.
Mohit Jain
Okay sir, thank you very much. Also sir, in the first nine months we have done roughly around 300 crores of top line. And sir, We have guided for like 600 to 650 crores initially. So sir, are we on a right track to do like 300 crores in the coming quarter Q4?
Arvind Kamath,
So I think couple of questions earlier I have said about this that the target that we had kept for this financial year may get reduced by 10% or so because there are certain factors, you know, which have resulted in delays in execution of the project. So there might be a slippage of 10% or so from the targets that we had kept for this part, this financial year.
Mohit Jain
Okay sir, thank you. That’s all for myself.
Operator
Thank you. The next question is from the line of Ashna from HDFC amc. Please go ahead.
Aashna Manaktala
Yeah. Hi, good afternoon team. Sir, despite this 10% slippage that we’re talking about, even if we consider our guidance to be around 62630 crores so execution it lands around 580 crores for the full year and that again brings us to around 280, 290crores of execution for Q4. So how confident are we of hitting that top line number?
Arvind Kamath,
I mean as for just to last two years actually if we see our historically whatever we have delivered in nine months revenue, the same revenue we have delivered in the last quarter as well, that is Q4. So that’s our endeavor to do this year as well. But however we just want to be considering the, you know, various situations because of the many executions are projects that quite a like a far reaching site like Namaligadh and Paradi etc. So considering all this, that’s how we said it could fall short by about 10 to 12% than what we had anticipated for the complete year.
Aashna Manaktala
Yes, that’s what I’m asking. Despite that 10% of shortfall, it still comes out to be around the 280, 290 crores of execution is what I wanted to understand. Would we be able to do that in Q4?
Arvind Kamath,
Yeah, that’s our endeavor to achieve that similar that kind of numbers in the last quarter.
Aashna Manaktala
Okay sir. And so in terms of margins for Q4 for the full year you mentioned that there might be a shortfall of 3 to 4 percentage points. So that again brings us to around 12% of full year EBITDA margin. Is that safe to assume?
Arvind Kamath,
Yeah, somewhere around 12 to 13%.
Aashna Manaktala
Okay, so this shortfall has also been, you mentioned has been because of some increased direct cost and some process getting delayed. So. I’m understanding those projects are now back on execution and would get completed over coming quarters.
Arvind Kamath,
Yeah, the projects have been getting executed but since the projects are with the PSUs and the projects are on the remote sites, there are certain conditions, environmental conditions or the conditions which are under the control of the client. Because of that there, there have been certain delays. So projects were never stalled, they were getting executed and they are on track right now.
Aashna Manaktala
Okay, and just one last question. In terms of the pipeline you mentioned 4000 crores for exports and 4000 crores for domestic. These are two separate if they understand.
Arvind Kamath,
Correct. That’s right. That’s right, correct.
Aashna Manaktala
Okay. In exports are there any specific life. For domestic you’re able to highlight the two, three key projects. So do. For exports are there any large projects that are there in the pipeline which we might know?
Arvind Kamath,
Yeah, there are mainly couple of projects in Russia which are. I mean, sorry, usa Russia there were. But Russia, the finalization has been delayed. So we are not really, you know, focusing that much because there’s been a substantial delay in the Russian finalization. But yeah, now there are a couple of important projects in the US which you know, we are. The finalization is expected in next three to six months. Other than that there are one or two projects in Middle east as well.
Aashna Manaktala
The Reliance order which we got in the Q1 this year we expect. When do we expect the execution to begin and to conclude? For that
Arvind Kamath,
The execution has already begun. We have already started booking, you know, some revenues as well though they are small in nature. But the execution completion is in the next financial year.
Aashna Manaktala
So by March 26th.
Arvind Kamath,
Yeah. March 26th. Correct. Correct. Yeah.
Operator
Thank you. The next question is from the line of Mahesh Pendre from LIC Mutual Fund. Please go ahead sir.
Mahesh Pendre
My questions have been answered. Thank you so much.
Operator
Thank you. The next question is from the line of Varun Mohanraj from Sakanvya Capital. Please go ahead.
Varun Mohanraj
Thank you for the opportunity. So you mentioned that your export pipeline would be around 4000 crores. So in previous calls we have mentioned that some of the export orders would be coming from the JNK Global company. So I just wanted to know whether we would be having to pay any royalty or any fee for the export opportunity that comes through the JNK Global. Route. Thank you.
Arvind Kamath,
Just whenever the order is received from JNK Global they, you know, they take care of their cost and whatever we bid we receive the order at that price. So there is no separate loyalty to be paid to them. Like we already received an order in this quarter as well for Malaysia that was from JNK Global. So there is no separate loyalty to be played when we receive the order from them itself. Only if we all receive the order for exports directly from the customer then we have to pay them up to 3%. Up to 3% of the order value.
Varun Mohanraj
Okay. Okay, thank you. And I think in one of the previous calls we mentioned about the products being fired heaters, reformers and cracking furnace. So I just wanted to know if like the 1200 crore order book is spread across these products or do we also have a wide range of SKUs.
Arvind Kamath,
It’s about 50% of that is cracking furnace and about balance, you know, 40% is 5 liters and 10% is the other products like flares, incinerators, etc.
Varun Mohanraj
Okay, and what’s the vision with the green hydrogen vertical and like three, three to five years down the line, how big, what vertical or revenue stream this particular product could be for us?
Arvind Kamath,
Typically the green energy and the renewable energy is our focus. But currently what we’re doing is developing our expertise in this line. So as maybe three to five years we want that line to be at least say about 30% of our total revenue. That’s our intention piece. But as you know there are a lot of obviously action taking place in that or there is a lot of, you know, work going ahead but actual orderings are not really happening in hydrogen, green hydrogen or other allied areas. But wherever the opportunities are there, we just want to ensure that we are able to beat and we are able to get qualified and develop our capabilities in executing such projects as well.
Varun Mohanraj
Does our existing products have a synergy with the green hydrogen industry or should we go about developing newer, completely newer products for this, for the screen hydrogen industry?
Arvind Kamath,
No, I mean the existing, they do have a synergy and that’s also one of the reason why we want to develop that expertise. Because. Say hi. Even currently through the reformer we are producing hydrogen. So in terms of handling capability of hydrogen we have already developed that over a period of time. So here instead of the reformer we would be using the electrolyzer when we are actually producing clean nitrogen that way.
Varun Mohanraj
Okay. Okay. And my last question would be on the Russian pipeline which we mentioned in the previous call that would be like 2000 crore pipeline. So I think in the. To the previous participant you mentioned that there’s been long delays. So do you think it would materialize something sometime in the future or like it’s like. I just want to know what is the. I mean the order for finalization from Russia?
Arvind Kamath,
Yeah, I mean there are, we are under active consideration but you know, unfortunately there’s been delays in finalization. We are in touch regularly so if there is any progress happening we will come to know. But as of now, yes, there are still delays in terms of the order finalization from Russia.
Varun Mohanraj
So the 4,000 crore pipeline is excluding Russia which you are mentioning or is it including Russia?
Arvind Kamath,
In the 4000 export pipeline there is a Russian. Certain amount of Russian proposals are also there, firm proposals. Yeah.
Varun Mohanraj
Oh thank you. That’s it. From my side. Thank you.
Operator
Thank you. The next question is from the line of Sunil Jain from Nirmal Bank Securities Private Limited. Please go ahead.
Sunil Jain
Yeah, thanks for this opportunity. Sir,
Operator
Hello. Request you to please use your handset.
Sunil Jain
Yeah, I’m using handset only. Am I audible?
Operator
Yes sir.
Sunil Jain
Yeah. See earlier you were guiding for 17 to 18% margin and from the order visibility you must be calculated that margin. So is there any change which has happened? Some extra cost which has come. That’s why the margin has come down.
Arvind Kamath,
See the. Yeah. We have already mentioned in our earlier calls also that the project has different execution cycles and at the initial stages of the execution cycle typically the margins are on the higher side and during the middle stages the margin dips. And again at the concluding stages when we are doing the erection work or the services portion is built, the margin again rises. So now in the current year, whatever revenue that is generated that. That is generated out of the projects. Those are in the stage wherein the margins are low. They are in the middle stages of their execution cycle. So that has resulted into dipping of the margins. And last year we did not book new orders significantly in the last financial year. So typically what happens is if you book new orders then there are certain orders in the initial stage which offset this effect when certain projects are in the middle stages. But this cumulative effect has resulted into reduction of margin.
Sunil Jain
And the same situation will be there in the fourth quarter also.
Arvind Kamath,
Yeah, that is what we said that somewhere the EBITDA would be in the range of 13 to 14%. And from the financial year 26 onwards you will see that the margins will get stabilized.
Sunil Jain
So the last execution part will come in 26 and then we have a better margin.
Arvind Kamath,
Yes.
Sunil Jain
And so second question related to interest cost. This quarter the interest cost came comparatively higher at over 5 crores. And you said that the actual interest in that is only 20 lakhs. So what is the rest of the cost? Is there any one off in that?
Arvind Kamath,
It is not the interest cost, it is the finance cost. And the finance cost includes apart from the interest. See in the last year for the December 23rd we were having credit facilities of 150 crores. Coming this December we have credit facilities of 457 crores. So we have availed additional limits of 307 crores from the last Q3 to this Q3. So this has resulted into the loan processing fees and the stamp duty charges.
So if you take that into consideration that itself is around 2.75 crores out of this. And also there are bank guarantee charges. We have issued bank guarantees to get the advances as we got the orders from the reliance. So around 85 lakhs is towards the bank guarantee charges. So if you add these three figures they are. They will come to around three and a half crores out of that. So typical interest cost is not the entire component of this finance cost.
Sunil Jain
Thank you very much.
Operator
Thank you. The next question is from the line of Raj S. Vyaz from TM Investments Technologies Private Limited Please. Please go ahead.
Raj S. Vyaz
Yeah, thanks for the opportunity. I just wanted what would be the absolute ESOP cost for FY25?
Arvind Kamath,
The absolute ESOP cost? I have answered this in my earlier to the. To the earlier question also. For nine months the absolute number is 7.51 crores and about 2.5 crores additional cost will come in this Q4. So roughly it will be around 10 crores for this fiscal.
Raj S. Vyaz
10 crores for this fiscal. And other thing is like in the earlier, like in Q2 you said that X2 will be far better than H1. But I guess in terms of Q3 earnings, we’ve also seen the order book declining. So I’m understanding that this is because of some of. Some of the execution has played out in this quarter. Is this correct? If my assumption is right,
Arvind Kamath,
Yeah. If you see the quarter in isolation, you will feel that order book has declined. There is an execution of course, but in the H1 itself, we backed the orders to the tune of around 880 crores. And our target for this financial year was somewhere between 800 to 1000 crores. So in fact we are on the right track to achieve our target to complete the order book. So as the orders get executed and till the time new orders are booked, the order book gets reduced.
Raj S. Vyaz
Okay, do we stick to the revenue guidance of 600cr as mentioned in the earlier like calls result or there’s some reduction in that as well.
Arvind Kamath,
Question also earlier that we are anticipating about 10% decline from the target that we had kept for ourselves for this fiscal.
Raj S. Vyaz
Okay, and have you won any new orders currently? If so, so can you elaborate on the same and what will be the growth forecast for the same, the completion of the order this quarter?
Pravin Sathe
Yeah, we already received one order which we mentioned in the thing as well, and there is a likely finalization of about two opportunities, one domestic and one export. But we wouldn’t know exactly they would get, you know, in terms of the actual ordering would happen in this quarter or the Q1 of the next year. But those two large opportunities are under finalization that way. One for the domestic and one for export opportunity.
Raj S. Vyaz
Any tentative figure of the same?
Arvind Kamath,
See, we cannot give a tentative figure of order finalization because we will always anticipate that we will get all the orders that we bid for, right?
Raj S. Vyaz
Correct. And. Okay, okay. That’s it. From my side. Thank you.
Arvind Kamath,
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Anshul JT from LKP Securities Ltd. Please go ahead.
Anshul JT
Hello sir. Am I audible?
Operator
Yes, sir.
Arvind Kamath,
Yeah, yeah. Please.
Anshul JT
Yeah. So. So as for your. One of the filings that Suntec Infra has filed an arbitration petition against you for the contract related at Diet site. Right. Is it related to the Reliance project only?
Arvind Kamath,
Yes, yes, it is related to the Reliance project.
Anshul JT
So, so has there does this affect any execution timeline or that goes on as guided by you previously?
Arvind Kamath,
That doesn’t affect the execution timeline because we have already engaged another contractor to carry out the same work and there we have mentioned clearly in our disclosure also that there would not be significant financial implications out of this arbitration.
Anshul JT
Okay, sir, thank you. That’s it. From my side.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Arvind Kamath,
Thank you all for joining our quarter three and nine monthly FY 2025 earnings call. We truly appreciate your time and interest in learning more about our company, JNK India. We value your support and look forward to continuing this journey together. If you have any further questions, please feel free to contact us and we will be more than happy to address all your queries. Thank you.
Operator
So on behalf of IIFL Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines.