Key highlights from Jupiter Wagons Ltd (JWL) Q1 FY25 Earnings Concall
- Financial Performance
- Total income reached INR90,219 lakhs, a 19% year-over-year increase.
- EBITDA grew to INR12,886 lakhs, up 32% with margin improving to 14.4%.
- PAT increased by 40% to INR8,923 lakhs, with margin growing to 9.9%.
- Consolidated EBITDA margin of 15.5% was achieved despite challenges.
- Order book stood at INR7,2834 lakhs as of June 30, 2024.
- Jupiter Electric Mobility
- Completed a 26-month trial of 11.2 kilowatt lithium and LFP battery pack for rail coaches.
- Secured purchase order for LFP auxiliary batteries for Vande Bharat train sets from Siemens.
- Received ARAI approval for commercial production of one-ton, four-wheel electric LCV, JEM TEZ.
- Production set to begin in October with initial plan of 500 vehicles in the first year.
- Bonatrans Acquisition
- Acquired majority stake in Bonatrans India Private Limited in March 2024.
- Bonatrans reported 5-fold increase in revenues to INR7,436 lakhs for fiscal year 2024.
- EBITDA rose to INR930 lakhs with 12.5% margin, PAT reached INR702 lakhs.
- Aim for turnover of approximately INR400 crores from BIPL for FY2024-25.
- Plans to expand BIPL’s capacity to machine 28,000 wheelsets in FY25 and up to 40,000-50,000 by FY26.
- Selling wheelsets to Indian Railways for LHB and Vande Bharat applications, and to metro players.
- Target to manufacture around 1 lakh wheelset annually, expected completion by 2027.
- QIP Success
- Successfully completed qualified institutional placement, raising 800 crores.
- QIP received overwhelming response with total demand reaching approximately 2,800 crores.
- Raised capital to be primarily used for establishing forged wheel and axle manufacturing plant.
- Initiative aims to enhance backward integration and support long-term growth.
- Creates opportunities to expand into the export market, strengthening growth and market presence.
- Order Pipeline
- Current order book stands at close to INR7,000 crores.
- Indian Railways is undertaking major expansion of track network.
- Railway freight traffic has grown over 5% and is close to 1600 million tons.
- Expected wagon demand from Indian Railways is above 30,000 wagons.
- Private sector demand continues to be robust.
- Company has started supplies for new specialized wagons like fly ash wagon and auto rake.
- Developing further new designs to improve demand flow and margins.
- EBITDA Margins
- EBITDA margin is nearly 2% higher than the previous full year.
- Management confirms these margins are sustainable.
- Wheel business and breaking business expected to contribute significantly to margins.
- Deliveries of specialized wagons expected to yield better margins.
- Increasing wheel capacities in Bonatrans will positively impact margins.
- Capacity Expansion
- Company is targeting to achieve sales of 10,000 plus wagons this year.
- Focused on increasing foundry capacity and backward integration.
- Adding 1,000 tons of foundry capacity by the end of Q3 FY24.
- No delays in expansion plans; on track to complete by October as previously guided.
- Battery Technology Plans
- Plans for backward integration in battery technology.
- Currently focusing on developing the right technology and getting certified.
- EV Business Update
- Company has received approvals from ARAI for their electric vehicle.
- Commercial production set to start by the end of October.
- Vehicles will have more than 80% localization.
- Products will be eligible for government subsidies.
- Vehicle targets last-mile connectivity with a significant price advantage.
- Initial focus on B2B segment, particularly aggregators.
- Discussions ongoing with potential customers to build order book.
- Company aims to produce 500 EV units in the current financial year.
- EV sales expected to begin in Q3.
- Break Segment
- Company expects to receive licenses from railways shortly for Stone India.
- Infrastructure upgraded for production.
- Commercial production expected to start in the next couple of months.
- Current order book for DAKO business is close to INR150 crore.
- COVIS business adding incremental orders every month.
- Company maintaining target of 200-250 crore revenue for FY24-25, including Stone India.
- Wagon Production Outlook
- Company maintains confidence in sustaining 15% EBITDA margins.
- Expect margin improvements as other businesses contribute more.
- National Rail Plan projects demand for 400,000 rolling stock wagons in next five years.
- Government commitment to infrastructure spending supports positive outlook.
- Company targets production of 10,000 wagons for the current year.
- Container Business
- Experiencing significant demand, especially for data center and battery containers.
- Current capacities fully utilized, planning to enhance production capacity.
- Focused on value-added containers, no longer taking orders for marine containers.
- Wheelset Manufacturing
- Ramping up capacity to 30,000 wheelsets by year-end.
- Initially focusing on domestic market before considering exports.
- Expecting INR300-400 crore in revenue for the current year.
- Targeting INR3,000-4,000 crore in revenue once fully integrated.
- Margins expected to exceed 15% after complete backward integration.
- Majority of exports to begin after setting up forging facility.