Jyoti CNC Automation Ltd (NSE: JYOTICNC) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Parakramsinh Ghanshyamsinh Jadeja — Chairman and Managing Director
Analysts:
Unidentified Participant
Harshit Patel — Analyst
Manish Ostwal — Analyst
Akshay Kaila — Analyst
Kamlesh Bagmar — Analyst
Saloni Jain — Analyst
Mayank Chaturvedi — Analyst
Aniket Jain — Analyst
Vaibhav Shah — Analyst
Depesh Kashyap — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Jyoti CNC Automation Limited Q4FY25 earnings conference call hosted by Equirus Securities Private Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Start then zero on your touchtone phone.
Please note that this conference has been recorded. I now hand the conference over to Mr. Harishit Patel. Thank you. And over to you sir.
Harshit Patel — Analyst
Hi, good evening everyone and welcome to GTCNC’s fourth quarter FY25 earnings conference call. We have with us Mr. Parakram C. Jadeja, Chairman and Managing Director of the company. Sir, if you can start by giving your Overview on the fourth quarter performance as well as outlook for FY26 and beyond and then we will open up for Q and A. Over to you Jede Jasan.
Parakramsinh Ghanshyamsinh Jadeja — Chairman and Managing Director
Thank you Akil. Dear investors, Good afternoon to all. This would be our second yearly results since the launch of our ipo. As I had expressed earlier also we can fragmented Jyoti’s journey into three phases. Number one establishment, second sustain and third is grow since the inception of the company way back in 1989. The initial phase was learning phase from where company has grown from a tiny startup thriving to find its place in a machine tools industry. From that a small foundation driven company, Jyoti slowly emerges, established SME and gradually emerged as one of the leading machine tool builder of the nation.
Slowly it has become the professional driven entity from the founder driven management. Finally we are carving the way ahead to make Jyoti a people driven institute which will run for the generation to come on the strong fundamentals of our core values. Friends, this would be my fifth investor call since launch of our ipo. At this juncture you would have many questions with respect to financials and business of the company. Surely I will be addressing the same in the next part of this our call itself. Since we have gathered in mass today, I would be glad to share the long term strategic insight for the road ahead.
Jyoti is on the way to build a strong foundation as a concerned business house that belongs to Indian manufacturing fraternity. Machine tool industry being the mother industry for the Manufacturing we are well prepared to contribute to the nation initiatives of make in India and subsequently would contribute to the GDP of the nation. It is the fact that manufacturing in any nation can only grow where the machine tool industry is in a mature state. For example, countries like Japan and Germany have marked their dominance in manufacturing because they have a well matured and advanced machine tool industry driven by innovation and technology.
It’s now a time for India to mark this strong manufacturing footprint through innovation and technology at driven machine tools. We had envisioned the strong industry pillars like aerospace and defense, automobile, general engineering and industrial automations would flourish in India and will enable us to become a manufacturing hub globally. Our aspiration to cater the aerospace and defense industry can only be fulfilled with the technology and innovation. This was the reason behind our acquisition of Huron in France which gave us access to the most advanced 5 axis precision machining. In the same way we had anticipated way back in 2015 that India would become a next manufacturing destination after China for electronic manufacturing and hence the relevant product development were initiated by our R and D team which has paid us through our back through entry in emerging EMs ecosystem in India till today.
The foundation of Jyoti was built on its strong mechanical expertise base. The company has producing the high precision mechanical components and machine for decades. As our long term business strategy, we would like to build our strong footage in mechatronic and not only a mechanical aspect of manufacturing. Now we are building our championship in electronics also and hence we have already initiated the manufacturing activities and design and development of a servo motors, servo drives, various electronic sensor PLC’s controllers which will enable us to manufacture the industrial automation and robotics in coming days. Subsequently, this developed expertise in electronics field would also help us to cater emerging semiconductor industry in India.
Being a responsible corporate house, we are equally concerned about the sustainability. The company is determined to have a net zero carbon footprint within the next couple of years through various go green initiatives. As a part of diversification, Jyoti is also exploring opportunities in various solar energy related manufacturing activities which is currently being catered to through imports from China. We foresee a huge surge of demand from this industrial sector which cannot be ignored by an engineering company like ours. Finally, in line with our Visa 2025, we are producing the highest quality, the lowest cost, easy to use product for our customer that integrates innovation and technology.
The lower manufacturing cost is already reflected through higher margins in our March 25 results. Now let me go through the financial of Q4 in FY 2025. First let me take you through the financial of Q4 revenue. We have clocked the consolidated revenue of 576 crore in Q4 FY25 as compared to the 450 crores in Q4 FY24 delivering the growth of 28% at EBITDA level. We have cloaked the consolidated EBITDA of 178 crores in Q4 as compared to the 134 crores in Q4FY24 delivering growth of 33%. The EBITDA margin has increased to 30.9% in Q4FY25 as compared to 29.7% in Q4FY24.
At PET level we have cloaked the Consolidated PET of 109 crores in Q4FY25 as compared to the 100 crore in Q4FY24 delivering the growth of 9%. Our Q4FY25A consolidated revenue from operation of 576 crore consists of 44 percentage from the Aerospace and Defense, 23% from Auto and Auto Components, 23% from Die from General Engineering, 4 percentage from Die and Mold and 6 percentage rest others. Our Q4FY25 order intake comes to 530 crores which consists of 29% from Aerospace and Defense, 33% from Auto and Auto Components, 26% from General Engineering, 5 percentage from Die and Mold and 7 percentage others.
Our total consolidated order book as on 31st March 2025 stands of 4346 crore. The industry segment split for the same is 39 percentage from Aerospace and Defense, 17% from Auto and Auto Component, 19 percentage from General Engineering, 16% from EMS, 4 percentage from Dye, Mold and 5 rest others. Now let me take you through the consolidated FY@ 2425 performance of the company in revenue. We have cloaked the consolidated revenue of18.18 crore in FY25 as compared to the 1330 crores in FY24 delivering growth of 36 percentage at EBITDA level. We have cloaked the consolidated EBITDA of 491 crores in FY25 as compared to the 301 crores in FY24 delivering the growth of 63%.
The EBITDA margin is 27% in FY25 as compared to the 22.5 percentage in FY24. At PET level, we have cloaked the consolidated PAT of 316 crore in FY25 as compared to the 151 crores in FY24A delivering growth of 109%. Our total consolidated revenue for FY25 stands at 1818 crores. The industry segment for split for the same is 45 percentage from aerospace and defense, 23 percentage from auto and auto components, 20 percentage from general engineering, 5 percentage from EMS, 2 percentage from the die mode and 5 percentage rest others. Let me quickly brief you because many people may join a new people.
So many a times I made this presentation but I will Let me have some quick view on that. Incepted in 1989 Jyoti has grown multifold. Jyoti is the. Jyoti has its subsidiaries offices in France, Germany, Canada and Turkey. We have two manufacturing plants at Rajkot at measuring 253,000 square meter and one at Strasbourg, France at measuring 46,000 square meter. In this journey so far we have designed and developed 200 plus product variants and have sold approximately one 35,000 plus machines across the globe. Our order book today stands at 4346 crores and we have been installed the capacity of a 6000 machine at Jyoti and 120 machine at Huron.
Let me go a little bit back. Let’s say in 2007 Jyoti acquired a French machine tools company Huron which is category catering precision CNC machine of aerospace and defense industries. In 2008 we established the R and D center called Leonard Davinti center at Rajkot. In 2016 Jyoti designed and developed the 5 axis multitasking machine in partnership with IIT Chennai under the Indian government scheme from Department of heavy industries. In 2017 we launched 7Sense as an Industry 4.0 tool and a platform as well as the KX300 machine for aerospace industries. In 2019 we launched an artificial intelligence AI system named Preciprotect for machine collision prevention.
There is a real time collision prevention. In 2022 we launched a VST160 machine to cater of EV vehicles. In 2024 Jyoti got listed on NSE BSE exchange on January 16, 2024. In 2025 we have launched seven new products in January 2025 in Imtech’s exhibition there. Jyoti has an experienced board and highly skilled management team to drive the strategy of the company to for the next leap of growth we have a fully vertically integrated manufacturing facility such as foundry, machine shop, sheet metal shop, paint shop, sub assembly and assembly shop which allows us to manufacture all the manufacturing components and sub assembly at critical components and sub assembly at Jyoti.
Reducing dependency on external Supply particularly from the imports and bringing operational efficiency. Over here at our R and D we have designed and developed 200 plus product variants across 44 product verticals which with our continuous focus on R and D we are able to provide a customized machine and technical solution to our customers. In terms of manufacturing capacity, we have 6,000 machine install capacity at Jyoti and 121 machine at Huron. France total land of Jyoti is close to 2.37,000 square meter and France we have a close to 46,000 square meter. And we are will have still more lens are available further grow from here.
Our subsidiary Huron is a technology backbone for us. It is located in central Europe which is a hub of machine tool industry. In a central part of Europe. We got an access to simultaneously a five axis technology. Through Huron we are able to cater to the European market. Through our subsidiary Huron we have marquee customers based in aerospace and defense industry. Through Huron products we have a strong sales and distribution network A pan India having 29 sales and service offices across 12 states. Since inception Jyoti Huron has installed one 35,000 plus CNC machines in more than 60 countries across the globe.
We catered a CNC machine to 12 industry segments which includes aerospace and defense, automobile, electronic manufacturing, railways, die and mold infrastructure, oil and gas, healthcare, valves and pumps, power and agriculture sector. We classify our product range in three categories Entry level, mid range and high end machines. Our entry level machine range we consider from 0 to 50 lakhs. Our mid range machines from 50 to 2 crores 50 lakhs to 2 crores and our high end machine range from 2 crores to 20 crores. Some of our key clients in aerospace industries are Airbus and their ecosystems.
Turkish aerospace, hal, GE in China, all AVIC group of industries, Tassel in India, Tassel, Bharat, Korj, etc. Our clients in automobiles are Tata, Mahindra, BMW, Mercedes, Audi, Volvo, Volkswagen etc. Any any. There are many such a marquee client in general engineering and other segments. We have received for the seventh consecutive year in the award for best brand in a metal cutting industries by economic time received a award from IMTMA in 2024 for the exports performance. So these are the our recognition in India. Over here let me explain you about the global machine tool industry. The global machine tool conception of the machine tool is close to 80 billion.
Currently India as a consumer ranked sixth with 3.9 billion dollar in a consumption. By 2030, India is expected to enter in the list of three global consumer of a machine tools Going ahead we continue to stay a focus and grow our business. Revenues from aerospace and defense, ems, automobile and general engineering and in future we are looking towards to entering into a semiconductor sector there. Going forward our strategy enabler will be a people development, a product development, a market expansion, manufacturing capacity expansion in a people development leadership development being our prime focus. Our center of excellence is fully operational now Many of a call I have given this input that the biggest challenge we are going to see on our growth path is a skill manpower and for that we have made this our center of excellence.
In the last quarter we have close to 325 people has been trained on our center of excellence over here in a product development in 2025 we have designed and developed and launched following new product variants we called as a GU8 is a five axis gantry type machining center. AWT22 is alloy wheel turning machines. BTM100 is a twin spindle gantry automations ATM200 inverted turning center with automations HP4000 and 6000 high performance series of a horizontal machining center. Tekkeon Beta is a five axis high dynamic machining center and Huma is a future of human machine interface. Recently we have registered the patent for a human and we got the patent rights over there.
Huma is our operating panel for our machines there. In terms of a manufacturing capacity expansion we have just completed let’s say in the last quarter 6,000 machine per annum has already completed and in this quarter we are close to 90% of our this facility in being cloaked in terms of utilization level there further enhancement of additional 10,000 machines per annum will be completed in the next two years. Thank you very much. And now we move forward to our next question and answer session.
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 2. 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 command Manish Oswal from Nirmal Bank Securities Private Limited Please proceed.
Manish Ostwal
Yes sir, thank you for the opportunity. My question on our capex program of 10,000 machine. So first of all how much amount we need to incur to for this expansion? That’s the question number one and the subset of this question is sir, we have a currently order book of 4300 crores and you are outlined almost 12 industry where we are catering. So based on the demand end user demand outlook how do you see the execution of this order book and overall revenue growth for the company 2627 that will be quite helpful.
Parakramsinh Ghanshyamsinh Jadeja
Okay so let’s say about first your questions on a capex actually on my last call I have given the numbers is close to 400 to 450 crores capex are going to be on this additional 10,000 machines of a capacity to be built over here and your second question about the order book let’s say today what you said is at 4300 crores and today our let’s say the capacity is close to now 6000 machine is going to be a bottleneck for us for a. Until this new capacity will come to utilize over there. So we will try our best in execution over here to utilize this year to be maximum this our capacity and executions over there.
So we will overcome this all our order book and try to be do our best over there.
Manish Ostwal
Okay the second question on the cash flow side sir the cash flow operating cash flows negative and if I look at our balance sheet there is sharp increase in the credit stable as well as the other financial assets. So when you see the. Our growth is translating into a cash flow generation also. So where can you comment on that why it is not reflecting in financial so far will change.
Parakramsinh Ghanshyamsinh Jadeja
Yes. So basically it’s a. It’s a. Let’s say we are growing on a very long term manufacturing cycles on a large machine on aerospace and defense and in the last quarter is subsequently it has been improved and dispatches been happened and all as in the last moment. So there is a. You. You are able to see in the depth of levels and all it has sharply been increased because it’s happened in. On the last quarter and last month. So you will see this has been cooled down in coming days and we were. We are. We are targeted that the positive cash flow in the end of this financial year of 26.
Manish Ostwal
Okay sir, thank you very much for answering all my question. Thank you.
operator
Thank you. The next question is from the line of Akshay from AK Investment. Please proceed.
Akshay Kaila
Hello. Congratulations sir for the great set of quarter four numbers. So I. So first question is how much machines did we sell in quarter four of FY26 and full year of FY26.
Parakramsinh Ghanshyamsinh Jadeja
Sorry FY25 1/2 1349 machines we have sold in quarter four and a full year is a 4072.
Akshay Kaila
Okay sir, okay, fair enough. And sir what is our revenue and EBITDA margin guidance for FY26 can we sustain the same growth momentum in FY26 for the EBITDA margins that we have shown in last quarter this quarter 31%.
Parakramsinh Ghanshyamsinh Jadeja
So basically if you look at that Jyoti is not in a quarter to quarter look at area. But let’s say in entire year we are able to maintain the momentum and we are able to maintain the margin always. I have told in my past call also we will maintain the margin around 25% and that will be a sustainable over there.
Akshay Kaila
Sure, sir. And sir, my last question is how much order flow are we expecting in FY26 across all our categories.
Parakramsinh Ghanshyamsinh Jadeja
So basically we are anticipating over here the similar momentum and this will be there are right now there is a lot of opportunities are opening up into aerospace and defense in this geopolitical situations. But today we are almost. In terms of today’s run rate we have a close to more than two 2 years order book are there and no customer customers are expect accepting to a delivery period more than two years. So just a year delivery or execution improve order book flow also will increase accordingly like this.
Akshay Kaila
Okay sir. Okay, fair enough. And sir, last one more question if I can ask. There is one pattern we have registered for Huma.
Parakramsinh Ghanshyamsinh Jadeja
So can you call it a human. Human machine.
Akshay Kaila
Yeah, right. Margins improve.
Parakramsinh Ghanshyamsinh Jadeja
Let me tell you it’s a very interesting question. See basically today the entire word in a CNC machine tool manufacturer are are being constrained to use only with the two or three CNC controller manufacturer. One from Germany and one from Japan. And every manufacturers are using like that. Okay. And we are going forward are going to manufacture a base in our make in India and our own controller there. So today this is our first steps towards to that and hmi the front end of the machine that we have designed. It’s a Jyoti’s screen. Basically it is so user friendly.
Basically our reason was to be made user friendly machine to be there. So all the our operator and operator of the machines can be run very smoothly and very nicely. That’s why we have designed and developed very unique HMI there. I am able to back to back to use any kind of a controller. But front end is a so nicely that operator easiness to be there basically and that the is the first steps to enter into complete our CNC manufacturing cycles to be there.
Akshay Kaila
Okay sir. Okay, great. Great to hear that and base my best wishes for the FY26.
Parakramsinh Ghanshyamsinh Jadeja
Thank you. Thank you very much.
operator
Thank you. The next question is from the land of Kamlesh Baghdad from Lotus Asset Management.
Kamlesh Bagmar
Thanks for the opportunity and strong set of performance and vision sir. Thank you. My one question was on the like a follow up on uma. So if I like say if we compare it with like say ABB or farm monitors so how much cost efficient it would be like say as compared to these two giants.
Parakramsinh Ghanshyamsinh Jadeja
So basically see this basically ABB is not a CNC controller manufacturer is basically Siemens. Okay, let me correct you there. Siemens and Fanuc is the main controller manufacturer today and in the entire machine tool industries of the world are using there are this two to three companies over there and in the entire over this machine let’s say in our entry level product this controller cost is contributing close to a 20 to 25 percentage. In a middle level machine is close to a 15 percentage and high end is close to 10 percentage or less than 10%.
Like that is a huge big cost. Okay. And there is a great opportunity to value addition over here. So we are looking to be a very in future to be a backward integration and based on that we are looking to be a good value addition so that we can enhance our margin furthermore from here basically.
Kamlesh Bagmar
And so secondly like say in this year we had a like say realization per machine of 44 lakh 63 thousand rupees margin EBITDA per machine of around 12 lakh 5000. So are we like say the current order book which we have. So would we be able to maintain those margins going forward and do we expect further add up because of this Oma coming?
Parakramsinh Ghanshyamsinh Jadeja
No, Humma is just a first steps basically. Okay, that will is just the beginning of we need to develop the controllers and all it will take another two to three years time. Okay. It fully integrated into manufacturing cycles and all. It’s going to be another two years. It’s just the beginning is one of the is the first steps. Basically all our customers use user friendly Hota, Jaga, Vira, Karaka. They should accept Adept and like that. Okay, this is the front end of the machines then basically is operating systems. What you say in a computer is an operating systems.
This is an operating system basically. Okay, so that we will we will see into coming years like that. In terms of your first question regarding the the average realization. So based on the order book we are in line with that to maintain the similar average realization in FY26 over there. Hello.
operator
Yeah, it seems like the participants line has got disconnected. Okay, shall I proceed with the next?
Parakramsinh Ghanshyamsinh Jadeja
Yes, yeah sure.
operator
The next question is from the line of Saloni Jain from NIRMAL bank pms. Please proceed.
Saloni Jain
Yes. Hi sir. Am I audible?
Parakramsinh Ghanshyamsinh Jadeja
Yeah. Hi Saloni.
Saloni Jain
Hi sir. Firstly congratulations on a great set of numbers for Q4.
Parakramsinh Ghanshyamsinh Jadeja
Thank you.
Saloni Jain
Yes sir. So my first question is we talked about growth catalyst coming in form of EMS and semiconductor for us. Right. So could you please address the question of TAM here for both EMS and semiconductor and what kind of a right to win can we see here going forward?
Parakramsinh Ghanshyamsinh Jadeja
So basically let’s say whatever the order book we have been built on electronics manufacturing that we are able to execute nicely on a second half of this year and on a similar time we are working with the many projects, many qualifications are going on and we are expecting to be a robust order intake in this year on a similar sector over there.
Saloni Jain
Okay, but in. So in terms of import substitution, what is the kind of opportunity that we are looking at?
Parakramsinh Ghanshyamsinh Jadeja
So basically in let’s say in India still today is close to 60% of India’s consumption either imports there.
Saloni Jain
That is for EMS and semiconductor both.
Parakramsinh Ghanshyamsinh Jadeja
This is a total machine tools consumptions today.
Saloni Jain
Okay. Right. Okay. And so my second.
Parakramsinh Ghanshyamsinh Jadeja
And right now for the, right now for the electronics and the semiconductor equipments are 100 being import. There are no manufacturing in India there.
Saloni Jain
Okay. So we are the only manufacturers there right now.
Parakramsinh Ghanshyamsinh Jadeja
Right now many peoples are entering over here. We are the first entering over there basically.
Saloni Jain
Okay. And so my second question is you talked about the capacity that we have right now, 6,000 machines and we are currently running at 90% utilization.
Parakramsinh Ghanshyamsinh Jadeja
Sorry, you finished your question? Yeah, please.
Saloni Jain
So, yes, so while the additional capacity of 10,000 machines is supposed to come in two years. Right. So given this capacity constraint that we have, how would you like to guide for the growth going forward? Is it a, is it the correct understanding that we might see a lower growth for the next two years before the new capacity comes in?
Parakramsinh Ghanshyamsinh Jadeja
So let’s say this capacity comes in a picture only on a last quarter. So last quarter of FY25 and this quarter only we are able to cloak this as an 90 percentage. So overall capacity been utilized. Okay. Is 65 percentage still I have a room to grow up to 35% over here in this year.
Saloni Jain
Okay, got it. Thank you. So those are my questions.
operator
Thank you. The next question is from the line of Mayank Chaturvedi from HSBC Mutual fund. Please proceed.
Mayank Chaturvedi
Yeah. Hi sir. Good evening.
Parakramsinh Ghanshyamsinh Jadeja
Hi Mayank.
Mayank Chaturvedi
So first on the EMS revenues this quarter again there has been zero revenue booking for the last two quarters. Also a subcutaneous revenue execution has come in. So could you just Throw some light on the slow execution on this order book please.
Parakramsinh Ghanshyamsinh Jadeja
So basically our delivery been asked of this order book is starting from this financial year on second half over here there. So it was been not been asked because that all the plant is under construction at customer site there. Okay. Once the plants are being ready then we are coming to pictures and we need to supply from our side there.
Mayank Chaturvedi
Okay. Is that still facing those machine issues from China? Are things easing there?
Parakramsinh Ghanshyamsinh Jadeja
Basically in this area we are also just entering until today this all the machines has come from Japan. Yeah.
Mayank Chaturvedi
And so on the capex side of this new 10,000 machines it was earlier understood that it would come in by the end of FY26. But now seems like it’s being shifted to FY27. Is it because of.
Parakramsinh Ghanshyamsinh Jadeja
No, I’m not shifting and I’m not lifting. This is basically I said a two physical year. Okay. Two financial year. So this will be. Will be coming on a FY27 in a beginning maybe in June will be ready there in 26 there.
Mayank Chaturvedi
Okay. Okay. Sure.
Parakramsinh Ghanshyamsinh Jadeja
Yeah. We are not. We are. We are not going further there. So this is just. I said two years because in my presentation it was written two physical year in the past also. So I am continued spelling out like this.
Mayank Chaturvedi
Okay. All right. All right. Got it. Since this two booking questions can you just give us a breakup of this 1349 machine sales that you’ve done Entry level, mid level and high end machines please?
Parakramsinh Ghanshyamsinh Jadeja
One second and last quarter. Yeah. So in a entry level machines we have done in terms of a value is a 218 crores 1107 machines. On a mid level we have done 74 roads at 165 machines and high level is a 252 crores and 77 machines. This is a combination of 1349 in its you for what you ask.
Mayank Chaturvedi
Got it. Okay. So it looks like the high end level machines realization has really fallen. Any comments on that?
Parakramsinh Ghanshyamsinh Jadeja
It’s what you said.
Mayank Chaturvedi
32 million high end level machines. 77 machines, 52 crores 252 crore.
Parakramsinh Ghanshyamsinh Jadeja
So basically when we say that It’s a higher 2 crores and above in different model mix up.
Mayank Chaturvedi
Yeah. Okay. Because your aerospace and defense revenues has grown quarter on quarter. So I was of the opinion that maybe.
Parakramsinh Ghanshyamsinh Jadeja
The value is the power machine value is a 3 crore 27 lakhs. Right?
Mayank Chaturvedi
Right. Okay.
Parakramsinh Ghanshyamsinh Jadeja
Yeah. Yeah.
Mayank Chaturvedi
Okay. Last question of mind. We’ve seen other financial assets have grown significantly. Other financial assets. Can you tell us why? What’s the component that’s driving this increase.
Parakramsinh Ghanshyamsinh Jadeja
So basically there is a percentage of completion. See these are the long. You know that all this aerospace and this large machine, the contractors the machine value is more than 20 crores and very long manufacturing cycle. Okay so those are the machines are been built up. Let’s say we are starting the percentage completion methods and that’s why it’s become a. It’s going into a financial assets to be there.
Mayank Chaturvedi
Okay. Okay.
Parakramsinh Ghanshyamsinh Jadeja
So as contact assets we started 18 months back. So now it’s completely piped has been been full so regularly this kind of now dispatches happen there.
Mayank Chaturvedi
Okay. Okay. Sure. Yeah. Okay sir. Thank you.
operator
Thank you. The next question is from the line of Aniket Jain from yes securities. Please proceed.
Aniket Jain
Can you hear me?
Parakramsinh Ghanshyamsinh Jadeja
Yes Aniket.
Aniket Jain
There’s a lot of traction going on in the defense industry. Are you seeing any increased inquiries?
operator
Could you please come closer to the device while asking a question?
Aniket Jain
Is it better now?
Parakramsinh Ghanshyamsinh Jadeja
Yes.
Aniket Jain
So I wanted to check that there’s. A lot of increased traction in the defense industry currently. Are you seeing any increase in inquiries or any pipeline that you are expecting for the next year or a couple of years?
Parakramsinh Ghanshyamsinh Jadeja
Oh, it’s a huge pressure Sadhguru. All our existing customers are pushing us like anything today is already started in Europe largely in India even now China. So every area now everybody is expanding their budget and there are a lot of pressures on us to expand our capacity to deliver faster there. Basically we are working on that.
Aniket Jain
So would it be fine to assume that a lot of capacity utilization would happen in probably defense and followed by ems once the EMS portfolio picks up?
Parakramsinh Ghanshyamsinh Jadeja
Correct.
Aniket Jain
Okay. And the second one would be regarding the US expansion plans. I remember that you mentioned opening a sales office there. So I wanted to check whether there’s any impact of tariffs that might happen to your portfolio there.
Parakramsinh Ghanshyamsinh Jadeja
No, basically the tariff is still is an open area and now we are going forward. We were just let’s say in the last couple of months we were waiting to clarity on that to go to US to open our sales and network there. And if anything is let’s say adverse then we will go and start to have some manufacturing there also. But now I think the things will be very soon be clear. There is no tariff effect much on our product over there.
Aniket Jain
Okay. Okay. So your US expansion plan basically
Parakramsinh Ghanshyamsinh Jadeja
we. Are basically on a gain side. We are going to have a better the right now US is importing in some other countries like Japan and Germany, Europe and to a China and all these are the main suppliers against them. India in A good position though there is not in any adverse situation will be on a better advantage situations to be there.
Aniket Jain
Thank you so much.
operator
Thank you. The next question is from the line of Manish Oswal from Nirmal Bang Securities Private limited. Please proceed.
Manish Ostwal
Yes sir. Thank you for the opportunity. Again my question on these new product launches in F25 where they launched almost eight products. So can you talk about the potential market opportunity and secondly whether these products seems to be margin accretive in nature because these are evaluated product from the current portfolio. So can you talk about the profitability as well as the market size opportunity in the F26 27? Yeah.
Parakramsinh Ghanshyamsinh Jadeja
So basically if you look at that we have a two product that we have developed on a five axis precision machining area particularly product called as a G8 the GU and then another product or as a tech on beta. Okay. On a on a similar product. Okay. A market size in the worldwide in ems aerospace and particularly on healthcare industries. It’s a very large opportunities are there. And India is also coming up more and more healthcare component manufacturing all India plants and everything. And worldwide this product market size. Okay. On a similar area and all worldwide it’s close to 3.7 billion dollar market size are there.
So we are expecting the participation to get the orders from there. And yes this is our coming. The machine is to be on a meet to high end market. So we’ll have a better margin over here. This apart from there there is one more product we have built is called as a LOL turning machine. It’s a basically an automobile industries. And mainly the EV sectors are coming and EV cars and everybody’s are more and more. And all the. All the cars are moving towards to Louis wheel. Until today in India there was an alloy wheels people are importing and now started manufacturing over here.
So this is a product to our entry level product baskets and there our margins are mid range margins are there. Then other product. What we have built is called as a BTM and ATM and hmcs. This also is an automation product because today more and more people are looking to be an automation in India. So this is also on a on a middle range product. And we are expecting to be a margin to be improved over here. There are.
Manish Ostwal
Okay. Okay. And the second question on the semiconductor for a. So what will be the capital allocation from Jyoti’s balance sheet for this venture? Initial capital commitment for that this venture.
Parakramsinh Ghanshyamsinh Jadeja
So right now we are not any. We not reached to an infrastructure level. Today we are designing the product. We are working with the two or three manufacturers right now, those are our potential client. We are developing equipment for them and it’s a. It’s a very high precision manufacturing. Components and assemblies are there. We will be quantified this in the next a couple of quarter. Let’s say we are expecting to be in a third quarter. We are able to see the complete roadmap ahead on a semiconductor. How much the plant needs to be expand and how much revenue can be generated.
That will be clear cut. Visibility is will come end of this financial year to us.
Manish Ostwal
All right, appreciate for the answer. Thank you.
operator
Thank you. Before I take the next question I would like to remind participants that you may press Star in one to ask a question. The next question is from the line of Hershel Sheth, an individual investor. Please proceed.
Unidentified Participant
Hello. Hello.
Parakramsinh Ghanshyamsinh Jadeja
Yeah, I’m here.
Unidentified Participant
Yeah, hi. Hi. So firstly congratulations on that great set of numbers. So just wanted to understand that the company is closing making somewhere around 16 crore of revenue but it is still sitting on 800 crores worth of inventory. So like. So like could we just justify this because I guess there are too many different model sizes and variations in your product categories but still the inventory level is pretty high. So just to understand like.
Parakramsinh Ghanshyamsinh Jadeja
So basically I’d like to. Let’s. I’ll tell you one thing. So it’s a very good question. Basically in early days let’s say we have improved a lot on inventory days. Earlier on let’s say in FY24 our inventory days was close to a 236 days was there and that has come down to be 180 days with this volume increase then model mixes, improvements and all has happened and that’s how we are able to sustainably improve from last year to this year. And in terms of a nature of that we are fully a vertically integrated manufacturing company.
And from castings to machining to assembly sub assembly and for entire this value chain we are doing and we have a 200 plus product variants. So that’s how these are the inventory you look like to be. You feel it is higher but we are on a very good improvement stage from 234 days to become down to 181 days today.
Unidentified Participant
So going forward do you see any improvement on the inventory days and you know that effect.
Parakramsinh Ghanshyamsinh Jadeja
So we are already, we are. Yeah we are working on to that and we are anticipating to touch. This is going to be around 150 to 160 days in next coming year there and that should be the now the finest bottom level situation. There.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you. The next question is from the line of Mayank Chaturvedi from HSBC Mutual fund. Please proceed.
Mayank Chaturvedi
Hi sir, thanks for the follow up. So EMS space again Some of our competitors are talking about introducing machine set capable for you know customers in the space. Are you seeing any increased competitive intensity there or any serious competition emerging in that space?
Parakramsinh Ghanshyamsinh Jadeja
See mang, I’m myself as entering onto that and competing to a Japanese builder there. Okay. So it is so large business if any competitors comes today also I will not to be worried about it. I have to make worry to other fast.
Mayank Chaturvedi
All right. All right. And recently there was there was a press release by one of our customers parents in Taiwan that one display model facility will be set up in the southern part of India. Any discussions going on there or is our product Tachyon can that be custom made to cater to this plant? That has been announced recently.
Parakramsinh Ghanshyamsinh Jadeja
I’ll tell you, I have a mic. I’m not able to tell you the detail more because it’s a very confidential agreement I have there. But the many project on a techon I’m working with the many different applications on a similar product line there and to be even for the modified the machines, the different hybrid structure like 3D printing and machines together and all kind of a combination are going on. I’m not able to tell you much more about that because it’s a very confidential parameter.
Mayank Chaturvedi
All right, I understand that’s hardly to hear. Thank you. Thank you for answering my questions.
operator
Thank you. The next question is from the line of Webhav Shah from Nirmal Bang Equal securities Private limited. Please proceed.
Vaibhav Shah
Thank you very much for the opportunity. Sir, my first question is related to Huron. So during the last call you have highlighted that there is new building construction or the debottle activities is going on. So. And all the approvals are expected were expected during the May 25. So are we on track here or is it fully operationalized now? If yes. So what would be the total revenue potential here?
Parakramsinh Ghanshyamsinh Jadeja
Yeah, so basically in a huran the building construction is over. The final the installation is going on the crane mounting and electrifications and everything is getting over in the next couple of days. And I told you in the last call that we will get everything into May and June and almost we are on a track onto that until today.
Vaibhav Shah
Okay.
Parakramsinh Ghanshyamsinh Jadeja
And with this our capacity will increase up to $80 million worth of production manufacturing there.
Vaibhav Shah
Okay. And so just one question. So what what was the full year revenue and EBITDA for Huron and what is the outstanding OB for Huron at FY25M.
Parakramsinh Ghanshyamsinh Jadeja
So basically at Huron we have a close to 200 and net 265, 253 crores of revenue and close to a €865,000. It means close to 8.8crores. 8crores as unpacked level there.
Vaibhav Shah
Understood? Understood sir. Thank you very much. Thank you.
operator
Thank you. The next question is from the line of Dipesh from Invesco. Please proceed.
Depesh Kashyap
Hey. Hi sir, how are you?
Parakramsinh Ghanshyamsinh Jadeja
Hi, how are you?
Depesh Kashyap
Very good. So I just wanted to check. The last year we spent around 310 crores and we increased the capacity from 4400 to 6000 machine. Right. So I just wanted to check will 400450 crore that you guided will be enough for 10,000 machines.
Parakramsinh Ghanshyamsinh Jadeja
Yes, because there are. There are many things are. Are being mixed. Let’s say while I’m making the expansion. So let’s say in one building there is a space like that on a last capex also there. So there is a synergies to be there. And it might be like this is not an absolute number there. Okay. Or not to be. Let’s say we built a pay assembly area. But I cannot build assembly area for just 100 or a 200 machine. There will be large area. So that is available there.
Depesh Kashyap
But basically. Okay, okay. And you said this.
Parakramsinh Ghanshyamsinh Jadeja
Let’s say from. Let’s say you can. You can see that from 6,000 to 16,000. So consolidated we need 450 crores like that.
Depesh Kashyap
Okay. Okay. Okay. And you said that this capacity will come by June of next year, right? That is how to look at it.
Parakramsinh Ghanshyamsinh Jadeja
Correct? Correct.
Depesh Kashyap
Okay. And will entire capacity will come in one go. Or we’ll see Python + Python something like that.
Parakramsinh Ghanshyamsinh Jadeja
No, it’s in one go because there are. There are. There are very integrated the assembly and manufacturing line we are putting up there. Particularly in machining and all. There are. We are doing a lot of automations over there. So once it will be start, it will be start fully there basically.
Depesh Kashyap
Okay. And lastly I think our order book has been very confusing for the last three quarters. And EMS order I think came in Q2 and we have not executed any of the orders in like Q3 and Q4. And I think our capacity got increased in third quarter only right towards the end. So why. Yeah, so why we are not executing that order and why not any new?
Parakramsinh Ghanshyamsinh Jadeja
Basically we are not. This execution is not being constrained about our capacity over here.
Depesh Kashyap
Okay.
Parakramsinh Ghanshyamsinh Jadeja
So my receiving end of the customer. There are a lot of infrastructure development is going on there. Once they will be getting ready, they will allow us to. Let’s say they will ask to deliver to them. Then after.
Depesh Kashyap
And when do you think that they will be ready?
Parakramsinh Ghanshyamsinh Jadeja
I think this year we are looking to be in. Near to be in September. August. September.
Depesh Kashyap
Okay. Okay. Understood. Thank you so much.
operator
Thank you, ladies and gentlemen. We take that as the last question and would now like to hand the conference over to the management for closing comments.
Parakramsinh Ghanshyamsinh Jadeja
Thank you very much to all of you. Thank you.
operator
On behalf of Equirus Securities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.