Jyoti CNC Automation (JYOTICNC) Q4 19/20 earnings summary

Executive summary

• FY20 standalone revenue fell to ₹560.82 crore from ₹791.42 crore; PAT declined to ₹9.10 crore from ₹34.79 crore.

• Consolidated revenue was ₹686.77 crore versus ₹965.26 crore, with a net loss of ₹50.31 crore versus net income of ₹18.48 crore; results included a debt-write-off gain.

• COVID-19 lockdowns disrupted operations in India and France; management did not expect a short-term business recovery.

Financial highlights

• Standalone total income was ₹576.29 crore, PBT ₹1.89 crore, PAT ₹9.10 crore and EPS ₹3.09, versus ₹807.67 crore, ₹54.50 crore, ₹34.79 crore and ₹11.80 in FY19.

• Consolidated revenue from operations declined to ₹686.77 crore from ₹965.26 crore; total expenses were ₹787.79 crore versus ₹981.81 crore.

• Consolidated loss before exceptional items was ₹89.35 crore; after a ₹31.83 crore exceptional gain, PBT loss was ₹57.52 crore and net loss ₹50.31 crore.

• Consolidated EPS was -₹17.07 versus ₹6.27 in FY19; standalone EPS was ₹3.09 versus ₹11.80.

Outlook and guidance

• Directors expected no short-term recovery despite major cost-reduction initiatives in India and France; management anticipated business sentiment could improve after COVID-19 restrictions eased.

• A medical and life-saving equipment business line was planned to leverage technical skills and infrastructure and ease near-term financial pressure.

• Product development priorities included four- and five-axis machines, entry-level machines and automation; backward integration was advanced to support Make in India and reduce costs.