JNK India To Maintain 18% Ebitda Margin On Back Of Strong Order Book, Says Chairperson

JNK India Ltd. is confident of maintaining its Ebitda margins of up to 18% on an annualised basis in the near future on the back of a strong order book, the company’s chairperson, Arvind Kamath, has said.

In a conversation with NDTV Profit, Kamath noted that historically, the company has seen a margin of about 16% to 18% Ebitda in most of its financial year results.

“It (Ebitda margins) depends on the contractor. Some large contracts could have comparatively lower margins, and some of the niche opportunities could have a comparatively higher margin,” he said.

“But on average, we are confident of maintaining these Ebitda margins (16%-18%) on an annualised basis,” the JNK India chairperson added.

In the first half of FY25, the company saw a robust order inflow, details of which Kamath shared.

“In Q1, we have seen an order inflow of Rs 708 crore, which has been one of the most fantastic quarters, mainly because of a cracking furnace order. So, this is the first cracking furnace order JNK India has directly received. And, in Q2, our order inflow was about Rs 170 crore. Here also, we have received a technology-based process plant order from a PSU,” he said.

JNK India is looking at an order pipeline of Rs 4,000 crore—Rs 2,00 crore from the domestic market and the remaining from the international market, Kamath noted. However, this will be finalised in about a year.

“Current outstanding order book as on Q2 end is Rs 1,311 crore,” he said.

JNK India is involved in the business of combustion equipment, a market that is expected to double its size to Rs 55,000 crore cumulatively over the next five years. 

“We are one of the only Indian companies that are in the complete gamut of fire heaters, from fire heaters to cracking furnaces,” Kamath said.

“The complete market is up for grabs for us as JNK, along with our technology partner in Korea, JNK Korea,” he noted, adding that its only competitor in the market is L&T.

Commenting on the growth prospects, Kamath said that the company is eyeing a growth of over Rs 1200-1300 crore over the next three years.

“We have a vision that is further than that. We are kind of growing our capability in terms of various product lines,” he said.

Shares of JNK India Ltd. touched a day's high of Rs 704.40 apiece, before cooling off to 695.30 as of 11:39 am on Tuesday. Meanwhile ,the benchmark Nifty 50's was 0.38% lower at 24,242.50 points.