JNK India (JNKINDIA) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 focused on project execution, with several key assignments nearing completion, leading to lower revenue recognition due to milestone-based billing and high fixed costs impacting margins.

• Nine-month FY2025 revenue reached INR 295.1 crores (Rs. 2,951 million), up 16% year-over-year, with an order book of INR 1,226 crores (Rs. 12,269 million) as of December 31, 2024, ensuring strong revenue visibility.

• Expanded product lines and entered new markets, including incinerators, cracking furnaces, solar EPC, and secured a significant international order for the Pengerang biorefinery project in Malaysia in January 2025.

• Credit rating upgraded by CRISIL in January 2025, reflecting improved financial discipline and operational efficiency.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Nine-month FY2025 revenue grew 16% year-over-year to INR 295.1 crores (Rs. 2,951 million), with an order inflow of Rs. 8,848 million.

• Q3 FY2025 revenue was INR 96.9 crores (Rs. 969 million), down 9.7% sequentially and 19.6% year-over-year; operating profit INR 29.3 crores (Rs. 293 million), EBITDA INR 9.75 crores (Rs. 98 million), and profit after tax INR 2.8 crores (Rs. 28 million), with margins of 2.9%.

• 9MFY25 EBITDA margin stood at 12.7%, PAT margin at 5.8%.

• ESOP expenses for nine months were INR 7.51 crores, expected to total INR 10 crores for the full year.

• Standalone and consolidated net profit, revenue, and EPS declined year-over-year and sequentially in Q3 FY25.

Outlook and guidance

• Management expects significant revenue in Q4 FY2025, aiming to execute most of the opening order book, though a 10% reduction in targets is anticipated due to project delays.

• EBITDA margin guidance for FY2025 is revised down by 3-4 percentage points due to increased costs and ESOP expenses, with margins expected to stabilize at 17%-18% from FY2026.

• Strong order pipeline of INR 4,000 crores each for domestic and export markets, with several large projects expected to finalize in the next 6-8 months.

• Plans to expand presence in core industry segments and explore opportunities in energy-efficient and sustainable solutions.

• IPO proceeds are being utilized for working capital and general corporate purposes.