We expect to be a debt-free company in 2-3 years: Jyoti CNC Automation CMD
Parakramsinh Jadeja, CMD, Jyoti CNC Automation, says “out of the IPO proceeds, we are going to pay close to Rs 475 crore on debt and after that will have less than 0.25% debt to equity ratio and in the next two to three years, we are looking to be a debt-free company. In terms of new capex, our plant has been put up over there. We do not need to invest much over here and then that kind of a total four phase we do, we do not need extra space to be there.”
Your company is the third largest CNC manufacturer and it has seen its fair shares of ups and downs as well. After suffering a setback in FY21-22, you have turned the corner in FY23 now and turned profitable as well. What led to this turnaround and what is the outlook now going forward? Is the profitability you think sustainable going forward?
Parakramsinh Jadeja: we have a robust order book and in terms of a percentage also if you look at the past, first half numbers are grooming up there.
And yes, it is a very sustainable business. We are looking for the next five to seven years, the way the manufacturing industries are growing and all this government initiative has come forward to Atmanirbhar Bharat and all the PLI schemes and everything grooming time is coming ahead there. It is just the beginning.
The issue is the pricing. It is richly priced, some would say much higher than your competitors like Elgi Equipments, Lakshmi Machine Works. But the Street is bullish and is expecting a growth of Rs 300 to 400 crore next year. Now that is a huge growth. Are you expecting numbers anywhere close to what the growth drivers are?
Parakramsinh Jadeja: If you look at the way our order books are and how we are going to execute that, definitely we will improve a lot.
