Jupiter Wagons Ltd - Feb 2025 Earnings Call Transcript Analysis

Earnings Call Transcript Analysis Report #

Financial Performance #

Key Financial Metrics (Q3 FY25) #

• Revenue from Operations: ₹1,029 crore (15% YoY increase).
  • Quote: “For Q3 FY25, our revenue from operations stood at Rs. 1,029 crore reflecting a 15% year-on-year increase.”
• EBITDA: ₹148 crore (19.5% YoY increase).
  • Quote: “EBITDA grew by 19.5% year-on-year to Rs. 148 crore…”
• EBITDA Margin: 14.4% (expansion from 13.9% in Q3 FY24).
  • Quote: “…with an EBITDA margin expansion to 14.4% from 13.9% in Q3 FY24.”
• PAT: Approximately ₹97 crore (18.4% YoY increase).
  • Quote: “PAT increased 18.4% year-on-year to approximately Rs. 97 crore…”
• PAT Margin: 9.2%.
• EPS: ₹2.29 per share.

Comparison with Previous Periods #

Strong YoY growth reported for Q3 FY25 in revenue, EBITDA, and PAT. Margin expansion also noted.

Revised Guidance/Forecasts #

• Wagon Sales FY25: Expect to achieve close to 9,000 wagons.
  • Quote: “…we would be doing close to 9,000 odd wagons in this financial year and I am very confident that we will be achieving those numbers.”
• Wagon Sales FY26 Target: Up to 10,000 wagons.
  • Quote: “And for the next financial year I had mentioned that yes our target is to go to up to 10,000 wagons…”
• Jupiter Tatravagonka (Wheel Business) Revenue:
  • FY25 (9 months): ₹225 crore.
    • Quote: “On the wheel business, it’s at Rs. 225 crore turnover we have already.”
  • FY25 (Full Year Estimate): Close to ₹300 crore (doubling YoY from ~₹120 crore when acquired).
    • Quote: “…we expect to close this year close to about Rs. 300 crore.”
  • FY26 Target: Further doubling of revenue (i.e., ~₹600 crore).
    • Quote: “And next year we are looking to further doubling those revenues.”
• Overall Revenue FY26 Target: Close to ₹5,000 crore.
  • Quote: “So, in FY26, we are looking at revenue of close to Rs. 5,000 crore.”
• Long-term Revenue Target (FY27-28): ₹8,000 - ₹10,000 crore.
  • Quote: “As I mentioned, FY27-28 is when we are expecting.”
• Consolidated Margins FY26: Expected to be better than FY25.
  • Quote: “…what I can very confidently say is that the margins profile will be better than this financial year.”
• Brake Business Revenue FY25: Expected to be ~₹250 crore.
  • Quote: “About 250 odd crore, I think that’s what we had projected also for this financial year.”

Areas of Growth #

• Strong performance in wagons and diversification into non-wagon segments.
• Jupiter Tatravagonka (wheel business) showing significant turnaround and growth.
  • Quote: “Since acquiring Bonatrans India… we have successfully commercialized the asset and would be doubling the revenue vis-à-vis the previous year.”
• Brake discs, axle boxes, specialized containers, axles, CMS crossing, and brake systems contributing significantly.

Strategic Initiatives & Business Updates #

Major Strategic Announcements #

• QIP Approval: Enabling resolution for QIP up to ₹3,000 crore for potential future growth opportunities post-budget, not an immediate plan.
  • Quote: “So, Darshil, see honestly, this is basic. It’s just an enabling resolution…it is just a resolution the company has taken in case, post budget there are major growth opportunities which come about.”
• Jupiter Electric Mobility (JEM):
  • Increased stake from 60% to 75%.
  • Acquired Log9 Technology’s railway and electric truck battery division, gaining control over proprietary battery technology.
  • Commercial launch of TEZ e-LCV scheduled for February 26, 2025, with over 500 order confirmations.
    • Quote: “Commercial launch of the product scheduled on 26 th February 2025 and we are proud to say that we already have order confirmations for over 500 TEZ vehicles.”
  • Introducing “Battery-as-a-Service” for TEZ.
  • JEM Udaan program launched with Porter.
• Jupiter Tatravagonka Railwheel Factory (formerly Bonatrans India): Successfully commercialized, doubling revenue YoY. Orissa project for backward integration is ongoing.
  • Quote: “…once the Orissa project for the backward integration kicks in, then as I have already mentioned that this would be a more than Rs. 2,000 crore opportunity for us with substantial exports to the European market.”

New Products, Services, or Markets Discussed #

• TEZ e-LCV and its variants.
• Battery-as-a-Service model for e-LCVs.
• Lithium-ion battery systems for railways and BESS operations (initial orders received).
• Export of containers to North American and European markets.
• Export of axle boxes (close to 10,000).

Significant Operational Changes #

• Localization of manufacturing processes for JVs expected to drive profitability from next year.
• Wagon manufacturing capacity increased to 10,000, with plans to reach 12,000 with new foundry.

Ongoing or Completed Projects #

• Wheel project (funded by earlier ₹800 cr QIP) is on track.
  • Quote: “The fundraise was specifically for our wheel project and the project is going on track.”
• Delivered 13,000 brake discs and 230 brake systems to Indian Railways.