Jyoti CNC Q1 profit falls 20 pc to Rs 57 crore; shares drop over 10 pc
Mumbai, Aug 7
Machine tools manufacturer Jyoti CNC Automation on Friday reported a 20.2 per cent year-on-year decline in net profit for the June quarter, as pressure on operating margins offset strong revenue growth.
The Gujarat-based company's consolidated net profit fell to Rs 57 crore in the first quarter of FY27, compared with Rs 71.4 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
The weaker-than-expected profitability triggered a sharp sell-off in the stock, with shares falling more than 10 per cent during Friday's trade.
Revenue from operations, however, climbed 24 per cent to Rs 508.5 crore from Rs 410.2 crore a year ago.
At the operating level, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 8.6 per cent to Rs 108.8 crore from Rs 100.2 crore in the year-ago quarter.
However, EBITDA margin contracted sharply to 21.4 per cent from 24.4 per cent, as per its regulatory filing.
Investors reacted negatively to the earnings performance, with margins remaining a key concern.
Shares of Jyoti CNC Automation declined more than 10 per cent during Friday's session, hitting an intra-day low of Rs 738.90 on the NSE.
The June-quarter performance follows a weaker-than-expected March quarter, during which profitability had also come under pressure.
In the fourth quarter of FY26, the company reported a 16.9 per cent year-on-year decline in consolidated net profit to Rs 90.6 crore, even as revenue increased 4.2 per cent to Rs 600 crore.
EBITDA for the March quarter fell 16.6 per cent to Rs 148.2 crore, while EBITDA margin narrowed significantly to 24.7 per cent from 30.8 per cent in the corresponding quarter of the previous year.
The decline was attributed to higher operating expenses and a sharp rise in finance costs. Standalone finance expenses during the quarter more than tripled year-on-year to Rs 19.4 crore.
— IANS
Reader Comments
Good to see Indian manufacturing companies growing their topline, but margin pressure is a concern across the sector. Hopefully this is just a temporary phase related to expansion. Will wait for the next quarter before making any judgment.
Market is punishing the stock for margin contraction. But think about it - with government's push on 'Make in India', order book should remain strong. Share price might be down today, but long-term story for CNC machine makers is still intact. 📈
These margin fluctuations seem typical for capital goods companies during expansion phases. Revenue growth of 24% is actually quite impressive in this environment. The sell-off looks like an overreaction to me.
I have been following Jyoti CNC since their IPO. The management should explain why finance costs tripled. Is it for capacity expansion or working capital issues? Transparency is key, yaar. Investors deserve better clarity.
This is why I prefer diversified portfolios! 😅 But seriously, it's important to remember that one bad quarter doesn't define a company. The order pipeline for CNC machines looks promising with all the infrastructure projects happening.
The Gujarat plant expansion must be costing them a lot. It's
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