Jash Engineering –
Company overview and Q1 results highlights –
An engineering company making critical products for Fresh water and Sea water intake systems, fresh water and waste water pumping stations, de-salination plants, storm water pumping stations, hydro-power generation and also for manufacturing industries like – Steel, cement, Paper & Pulp, Petrochemicals, Fertilizers and other process plants
Product portfolio includes –
Water Intake systems – Like – Penstock gates, Open channel gates, Downward opening Weir gates, Flap gates, Stop Logs
Heavy fabricated gates – Bulkhead slide gates, Roller gates, butterfly gates, Crest gates, Radial / Tainter gates, Bonneted gates
Coarse screening equipment – Trash rack, MMR screen, MultiRake screen, suspended trash racks
Fine Screening equipment – Screenmat step screen, Rotoclean rotary drum screen, Rotobrush Rotary screen, Mahr Perscalator screen, Travelling band screen
**Gate Valves **
Solid Bulk handling Valves
Special purpose Valves
Process equipments like –
Water clarifiers
Detritors
Slow speed floating aerators
Slow speed fixed aerators
Hydropower Screw generators
Screw Pumps
Filtering equipment
Secondary treatment Equipment like –
Diffuser aeration
Mixing and Aeration equipment
Decanting equipment
Turbo Blower
Products wise revenue contribution in Q1 FY 25 –
Water control gates – 49 pc
Screening equipment – 31 pc
Valves – 13 pc
Hydropower, Pumping, process equipment and others – 7 pc
FY 24 financial outcomes –
Revenues – 521 vs 415 cr
Gross profits – 311 vs 243 cr ( gross margins @ 59 vs 58 pc )
EBITDA – 105 vs 77 cr ( margins @ 20 vs 19 pc )
PAT – 67 vs 52 cr
RoE – 19.7 vs 21.7 pc
Q1 and Q2 are generally soft for the company. Company drives bulk of its business from Q3 and Q4
Q1 FY 25 financial outcomes –
Revenues – 116 vs 65 cr ( up 78 pc )
Gross profits – 60 vs 39 cr, up 52 pc ( margins @ 51 vs 60 pc )
EBITDA – 5.2 vs 1 cr ( margins @ 4.5 vs 1.4 pc )
PAT – 0.1 vs (-) 3.4 cr
Company’s order book as on 01 Aug 24 –
Jash Engineering – 553 cr
Rodney Hunt – 365 cr ( their US subsidiary )
Waterfront fluid controls – 21 cr ( their UK subsidiary )
Total @ 939 cr
Order pipeline (under negotiation and in final stages) @ 103 cr
Revenue guidance for FY 25 @ 675 cr
A new construction facility measuring 60k Sq Ft is under construction at Shivpad, Chennai. Likely to be commissioned by Feb 25. At peak capacity utilisation will contribute to aprox 100 cr of revenues
Capex lined up for FY 25 @ 29 cr
Areas like – Storm water and flood prevention, Desalination, Rising sea levels, Wastewater treatment and re-use are likely to open up exiting new possibilities for the company
Company – at present operates via its 6 manufacturing locations – 04 in India, 01 each in UK and US. Current employee strength @ slightly above 1000. Company is approved by most municipal authorities in India and Abroad. These approvals are extremely critical in the company’s line of business
Overtime – company has made 04 major acquisitions – Rodney Hunt ( US ) , Waterfront ( UK ), Shivpad ( in India and Mahr Maschinenbau ( in Europe )
Shivpad was acquired to help in treatment process equipment
Mahr Meashinenbeu was acquired to get bet screens technology in the world
Rodney Hunt was acquired for their brand value in US
Waterfront was acquired for their penetration in the UK mkts
Company’s current facilities have a revenue potential of 800 cr. Aim to take it up to 1000 cr by next FY
Company does perform a lot of their manufacturing functions – in house – which gives them critical advantage over competition
Company has a technical collaboration with Invent ( Germany ) to make Disc Filters and have already started manufacturing the same
Equipment like – diffusers, Mixing and Aeration equipment, Decanting equipment, Turbo Blowers are recent additions to company’s products portfolio
Company executed some legacy orders from its Rodney Hunt subsidiary in Q1. These had thin margins. Future pipeline of Rodney Hunt has much better profitability
As the company’s turnover keeps rising, even Q1,Q2 will start to report descent profits from FY 26 onwards
Company is likely to overshoot its revenue guidance of 675 cr given in the beginning of the year. Revenues may go upto 700-720 cr range ( contingent on customers taking delivery of materials in Mar 25 )
Over and above the expansion at Shivpad( Chennai ), company is undertaking expansion of its Unit -4 by another 64k sq ft @ cost of 23 cr. This again, has the potential to add 100 cr to the company’s bottomline
At present, company is not doing its screens business in US. US business is currently restricted to various types of gates. Now that the company has been able to turn around Rodney Hunt, it plans to introduce screens in US as well. One advantage that company has is that Mahr – brand is well known in US, hence products approvals should not be a problem for them
Singapore has earmarked resources worth 6000 cr for electrotechnical equipment to be deployed over next 10-15 yrs to combat rising water levels. This business should start flowing wef next FY. Jash engineering should be a beneficiary
In a typical waste water treatment plant, money is spent on civil works and electrotechnical equipment. On an avg, company’s share of value in any such project is around 5-10 pc of the total project cost
Company believes, as of now the GoI’s focus on water related infra is not at levels that it should be. However, as govt’s focus in this area improves – it can be great times for the company
Company has started to increase its focus towards waste water treatment business – hence their latest technical collaboration with Invent ( Germany ) to make disk filters, canisters, diffusers, Turbo blowers etc. At present there are certain differences of opinions between Jash and Invent about the JV’s strategy. Invent wants to do low volume / high margin business whereas Jash is trying to convince them to go for higher volumes. According to Jash’s management, it may take another 6-12 months for the opinions to converge
At present 3-4 additional jobs are under negotiation that the company is actively involved in. Each order is of the magnitude of aprox $ 5-15 million
Company has guided for a 1000 cr topline by FY 28. However, if the business buoyancy is good – they may achieve it sooner
Disc : not holding, tempted to add on dips, looks like a promising company, not SEBI registered, not a buy / sell recommendation
| Subscribe To Our Free Newsletter |
