JNK India (JNKINDIA) Q2 24/25 earnings summary

Executive summary

• Achieved H1 FY25 revenue of INR 1,981 million, up 47% year-on-year, with Q2 revenue at INR 1,074 million, and expanded into new markets including the USA.

• Order book reached an all-time high of INR 13,116 million as of September 30, 2024, with INR 8,782 million inflow in H1.

• Secured first U.S. order for a pyroheater, first process plant order from HPCL, and flare package for Adani Mundra Petrochem, expanding international and domestic presence.

• Transitioned from private to public company, completed IPO with Rs. 6,490 mn raised, and expanded into renewable energy and hydrogen infrastructure.

• Approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

Financial highlights

• Q2 FY25 operating profit was INR 337 million (31.4% margin); H1 operating profit was INR 690 million (34.8% margin); Q2 EBITDA was INR 154 million (14.4% margin); H1 EBITDA was INR 276 million (13.9% margin).

• Q2 profit after tax was INR 77-78 million (EPS INR 1.42), up 21.5% quarter-on-quarter; H1 PAT was INR 141 million (7.1% margin).

• Standalone Q2 FY25 revenue from operations: ₹1,026.75 million; consolidated Q2 FY25 revenue: ₹1,038.30 million; consolidated net profit: ₹77.49 million.

• Net cash from operating activities deteriorated to INR -63 crores (₹-634.65 million) in H1 FY25, mainly due to increased receivables and payables.

• ROCE at 9.2% and ROE at 8.1% for H1 FY25.

Outlook and guidance

• Margin guidance remains near 18% for the full year, with expectations of improvement in Q3 and Q4 as new orders contribute.

• PAT margin expected to rise from current 7% to around 10% by year-end, with normalization in FY26 as ESOP costs end.

• Revenue for FY25 projected between INR 600-700 crores, with execution of opening order book and new orders.

• Focus on scaling operations in refinery and petrochemical sectors, while exploring opportunities in sustainable and environmentally-friendly solutions.

• IPO proceeds to be used for working capital and general corporate purposes; ₹688.62 million remains unutilised as of September 30, 2024.