John Cockerill — Q4 FY25 earnings call

Call held 14 May 2025

Management summary

John Cockerill India Limited reported a challenging Q1 CY25 with a 48% YoY revenue decline to INR 764 million, primarily due to a slowdown in order inflows. Despite this, the company achieved an EBITDA-positive result of INR 9.1 million and improved its cash position to INR 748 million. Management highlighted a strong order book of over INR 6 billion and strategic initiatives focused on high-margin services and innovative green steel technologies (JVD, Volteron) to drive future growth and profitability.

Highlights

  • Revenue for Q1 CY25 stood at INR 764 million, reflecting a 48% YoY decline.

  • The company reported an EBITDA-positive performance of INR 9.1 million for Q1 CY25, a significant improvement from minus INR 81.2 million in Q3 2024 and INR 6.3 million positive in Q4 2024.

  • Cash position improved to INR 748 million in Q1 CY25 from INR 465 million in Q4 2024.

  • Order book as of March 31, 2025, stands strong at over INR 6 billion, providing healthy forward visibility.

  • The value-added services order book tripled in a year, with a target to reach at least 20% of total order book.

  • New technologies like JVD are expected to secure contracts in 2025, and Volteron in 2026.

Key financials

  1. Revenue 764 Mn -48%YoY
  2. EBITDA 9.1 Mn
  3. Cash Position 748 Mn

What they filed

Q1 FY27: revenue up 18.2%, net profit down 106.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue76 72 221 253 97 +28%228 +215%345 +56%299 +18%
EBITDA-9 -0 -1 -26 11 +231%-20 −4067%8 +900%-27 −4%
Net profit-7 -1 -3 -15 9 +219%-9 −512%7 +333%-31 −107%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹6 Bn

as of 2025-03-31 quantified

Execution

Value services: 6-12 months; Main projects: 2-3.5 years

Composition

  • Value Services (product)
The order book provides healthy forward visibility and reaffirms belief in gradual revenue recovery.

Source: Prepared remarks

Capital allocation

high confidence
  • Liquidity Cash ₹748 Mn Cash position improved from INR 465 million in Q4 2024 to INR 748 million in Q1 2025.
    Our cash position has also improved from INR 465 million in Q4 2024 to INR 748 million in Q1 2025.

Guidance & targets

Revenue

  • Revenue Growth Revenue · near future · Medium confidence Optimistic to grow
    But we are extremely optimistic to the fact that we will be able to grow our revenue in the near future through implementation and contractualization of new technologies like JVD and Volteron.

    — Francois David Martino, Chairman

Profitability

  • EBITDA Margin Profitability · if revenues revert to peak levels · Medium confidence 5%
    So yes, if the revenue comes, we are aiming to this. ... Yes. [In this range?]

    — Marc Dumont, Chief Financial Officer

Order Book

  • Value Services Share of Order Book Order Book · going forward · High confidence at least 20%
    And we are aiming to have at least 20% of value services going forward and even growing this further more on the order book.

    — Francois David Martino, Chairman

New Technologies

  • JVD Contracts New Technologies · 2025 · High confidence contracts expected
    For the JVD technology, we expect contracts in 2025 and for the Volteron technology, the first contract is expected in 2026.

    — Francois David Martino, Chairman

  • Volteron First Contract New Technologies · 2026 · High confidence first contract expected

    — Francois David Martino, Chairman

What to watch in Q1 FY26

Order Inflow Pickup

Going forward (next quarters)
Current Impacted by headwinds in past year
Target Healthy pickup in order inflows

Why it matters

Leading indicator for future revenue growth and order book expansion.

Based on recent discussions with our customers, we anticipate a healthy pickup in order inflows going forward.

Risks & concerns

  • Global Steel Industry Headwinds

    medium

    Challenging period due to economic uncertainties, geopolitical tensions, cautious investment culture, project approval delays, softening domestic steel demand, and Chinese steel exports.

    Management acknowledged

  • Revenue Conversion Delays

    medium

    Slowdown in order inflows over past quarters led to cascading impact on revenue recognition for longer cycle projects.

    Management acknowledged

  • Fixed Cost Under-absorption

    medium

    Lower top line in Q1 led to under absorption of fixed costs, weighing on profitability, being addressed by redesign and cost rationalization.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Green Hydrogen Component Manufacturing by JCIL Partial
JCIL, the company you have invested in, is essentially focused on the steel industry. The hydrogen business is a separate business which has its manufacturing facilities mainly in France and China. So since it is a very specific and special manufacturing setup, you need to do electrolyzers. These are heavy investments which has been already developed in China and in France and require intensive assets. So, we are not in a position to produce components for these electrolyzers out of our Taloja workshop. Nevertheless, the group plan in the medium, long term, future to build an Indian facility to manufacture electrolyzers directly here on the market.

Clarifies JCIL's direct involvement in hydrogen production, distinguishing it from the group's broader activities and indicating future plans for an Indian facility.

Asked by Rohit Jain

Profit Margin Growth Strategy Direct
I can speak on behalf of the whole board of JCIL. We are neither satisfied with the level of profit margins that we are seeing especially in 2024. And you have been asking of what do we do in order to improve that situation in the long run, and whether there will be products added to the portfolio. So my answer will be also covering these two sides. Improving profit margins has different elements and I can give you an example of the expansion of our value-added services activity. This is a higher margin business activity and we aim to grow, that overall share of value-added services in our total revenues be higher, the average cost margin and financial results will be.

Addresses core profitability concerns and outlines specific strategies for margin improvement through higher-margin services and new technologies.

Asked by Rohit Jain

Strategic Plan for Indian Entity within the Group Direct
So to that point, we are exploring possibilities to consolidate more operations in India. The group John Cockerill has a strategy called "Go to India," which means shifting majority of our operations in India. This is part of the exploration we are going through right now.

Indicates potential for significant expansion and strategic importance of the Indian entity within the global group, suggesting future growth opportunities.

Asked by Rohit Jain

Order Book Execution Timelines Direct
So you need to understand our projects. It is at least in CY'24 all depends, value services is short term meaning six to 12 months, but the main projects this is a longer project, so it is over two years, two years and half, sometime even longer depending on the client. So all what we see here is a different perspective depending if you look at walls coating or value services.

Provides crucial context for revenue visibility and conversion from the order book, differentiating between short-term and long-term projects.

Asked by Kirtan Mehta

Contribution of Silicon Steel and Upstream Products Direct
Silicon steel has been significantly important for us. Last year has been the biggest part of our order book especially the contract we have won in the US with ArcelorMittal Calvert. I remind that silicon steel is the steel used to manufacture electrical motor for electrical vehicles. And it is already part of our core portfolio, and we expect additional orders in the regions in India and US further in the next years to come. ... In the steel industry, the upstream investments represent the majority of the investments monetary wise. So we talk about 70% of the complete investments in steel being upstream. That is why it is a very important development of our portfolio. We expect with Volteron, Electrical Arc Furnaces and hydrogen to be able to ramp up the revenue in the upstream part. That being said, depending on the commercial success of the solutions, it might be a significant part of our revenue in the future.

Identifies key growth drivers and new product segments for future revenue, particularly in the high-growth EV and green steel sectors.

Asked by Aman Vij

Royalty Fees for Technology from Parent Evasive
These are confidential information which we cannot provide.

Highlights a potential cost structure element (inter-company technology transfer fees) that management is unwilling to disclose, which could impact profitability analysis.

Asked by Sugandhi

Achievability of 5% EBITDA Margin at Peak Revenue Direct
So yes, if the revenue comes, we are aiming to this. ... Yes. [In this range?]

Provides a clear, albeit conditional, long-term EBITDA margin target for investors, indicating management's ambition for profitability.

Asked by Sugandhi

2 min read 5 chapters

Detailed narrative

Q1 CY25 Financial Performance Overview

John Cockerill India reported a revenue of INR 764 million for Q1 Calendar Year 2025, marking a 48% year-on-year decline. This was attributed to a slowdown in order inflows and the long-cycle nature of projects. Despite the revenue dip, the company achieved an EBITDA-positive result of INR 9.1 million, a significant improvement from a negative INR 81.2 million in Q3 2024 and a positive INR 6.3 million in Q4 2024. The cash position also strengthened, rising from INR 465 million in Q4 2024 to INR 748 million in Q1 2025.

Strategic Focus on High-Margin Services and Innovation

Management emphasized a strategic shift towards expanding its revamps, spares, and services business, which is a higher-margin, recurring revenue stream. The order book for value services has tripled in the past year, with a target to constitute at least 20% of the total order book going forward. Additionally, the company is leveraging innovative green steel technologies like Jet Vapor Deposition (JVD) and Volteron, with JVD contracts expected in 2025 and Volteron's first contract anticipated in 2026.

Order Book and Revenue Visibility

As of March 31, 2025, the company's order book stands at over INR 6 billion, providing healthy forward visibility. While value services projects have a shorter execution timeline of 6-12 months, main CAPEX projects for new lines typically span 2-3.5 years. Management noted early signs of recovery in customer engagement and enquiry levels, anticipating a healthy pickup in order inflows in the coming quarters.

Internal Transformation and Cost Rationalization

John Cockerill India is undergoing an enterprise-wide transformation in 2025, focusing on building an agile, performance-driven, and customer-centric organization. Key initiatives include a zero-based organization redesign, VAVE for material cost reduction, procurement optimization, and stringent cash and working capital management, which have already led to inventory reduction and improved EBIT performance. These efforts aim to streamline costs and enhance efficiency.

India's Strategic Importance and Green Steel Initiatives

India is a strategic priority for the John Cockerill Group, aligning with the Indian government's target of 300 million metric tons steel production by 2030 and net-zero emissions. The company is exploring consolidating more operations in India under a "Go to India" strategy. Technologies like JVD and Volteron are positioned to support the modernization of aging steel infrastructure and enable clean capacity additions, with Volteron offering significant OPEX advantages over traditional methods in the long run.

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