Jyoti Structures - Electrifying Results

Jyoti Structures - To Benefit From Power Sector Reforms

Jyoti Structures has declared its third quarter results. The company's Q3 net profit is up at Rs 17.4 crore (Rs 174 million) from Rs 7.5 crore (Rs 75 million) during the same quarter previous year.

Key takeaways from Jyoti Structures concall hosted by Prabhudas Lilladher:

• The company is into transimission, substation and rural electrification.
• Jyoti Structures' topline has grown by 42% and will maintain around 42-60%; bottomline is better.
• EBITDA margin is hovering around 12% while 10-12% is reasonable in whole industry.
• The company will maintain 12% margin in future and also expect to increase.
• Margin expansion is more in the company but not specifically from which part. Company's sales is growing and fixed cost is not growing; also controlling manpower, interest cost.
• Company has no plans for equity raising; current equity is around 16 crore.
• Debt is around Rs 130-140 crore; company's interest cost is not growing in tandem with the sales growth; Sales is growing by 43% while interest cost by only 15%.
• Working capital cycle: It was around 6 months outstanding, now hovering around 3-4 months and will try to maintain ceiling on 3 months.
• Company's order book has been increasing by 30-35% levels; the chances to get a project is 1 out of 6 projects.
• Order book at Rs 1800-1900 cr, around 60% is for transmission business and 30-40% for distribution and substation; 65% is domestic and balance exports.
• Capacity at transmission lines will go upto 76000MT in this year.
• Current reserves are around Rs 235 crore on 31-12-2006.