JNK India Looks To Improve On Ebitda Guidance With Strong First Half, Order Book

JNK India Ltd. is set to improve on its current 18% Ebitda guidance for fiscal 2025, according to Chief Financial Officer Pravin Sathe. The company is confident of achieving a minimum 18% Ebitda and 11% profit after-tax growth in the year, he told NDTV Profit.

“We have given a guidance of 18% since the beginning. It has been maintained consistently for the last three to four years. Now, if we analyse quarter-on-quarter, the margins may vary. On a year-on-year basis, there could be an improvement,” he said.

The company, which made its market debut in April 2024, has reported impressive financial results for the first quarter of fiscal 2025. Its consolidated revenue jumped 139.62%, reaching Rs 787.99 crore. The company’s Ebitda increased by 24.07% to Rs 79.38 crore, while the net profit surged by 62.75% to Rs 76.38 crore.

“It’s been a fantastic Q1 and H1 for us this year. Our listing and the proceeds from the primary objects have significantly contributed to securing larger contracts. As of the end of August, our order inflow has reached approximately Rs 900 crore, with our order backlog swelling from Rs 626 crore in March to Rs 1,450 crore," said Arvind Kamath, chairman and whole-time director of JNK India.

This strong order book also presents a promising outlook for the next year, he said.

Kamath also elaborated on JNK India's diversification strategy. “While heating equipment remains our core business, we are venturing into waste gas handling, focusing on flares and incinerators, as well as renewable energy.”

He highlighted two key orders received from Indian Oil Corp. for waste gas handling, saying, “These projects are prestigious and important for our growth in this financial year, reflecting our capability and expertise in this sector.”

The company is also making strides in the petrochemical sector, having secured its first significant order for a cracker furnace from Reliance. “Many petrochemical projects are underway in India, and cracking furnaces will play a crucial role in these developments,” Kamath said.

Most of the company's contracts have an execution period ranging from one to two years. The IOCL incinerators are expected to be completed within a year, while the Reliance cracker furnace will take approximately 21 to 22 months, he said.

Looking forward, JNK India plans to increase its focus on diversification. Currently, the waste gas handling segment comprises 12% of the order book, and Kamath aims for it to represent between 10% and 15% in the coming years. The renewable energy segment, he mentioned, accounts for about 5% now, with aspirations to expand that to 10% within the next two to three years.

Shares of JNK India Ltd. closed 2.26% lower at Rs 640 per share, compared to a 0.93% decline in the NSE Nifty 50 on Friday.