Jupiter Wagons Nov-24

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Questions and Answers

Under which regulation of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, is the submission of the transcript made?

  • Regulation 18
  • Regulation 45
  • Regulation 30 (correct)
  • Regulation 25

For which period do the financial results discussed in the investor/analyst call pertain?

  • Q1 and H1-FY2024
  • Q2 and H2-FY2024
  • Q2 and H1-FY2025 (correct)
  • Q1 and H2-FY2025

On which date was the investor/analyst call held to discuss the financial results?

  • September 30, 2024
  • November 11, 2024 (correct)
  • November 14, 2024
  • October 15, 2024

Which of the following individuals serves as the Company Secretary and Compliance Officer for Jupiter Wagons Limited?

<p>Ritesh Kumar Singh (D)</p> Signup and view all the answers

Which organization hosted the Q2 and H1 FY '25 Earnings Conference Call for Jupiter Wagons Limited?

<p>Systematix Institutional Equities (D)</p> Signup and view all the answers

Who is the Managing Director of Jupiter Wagons Limited, as indicated in the document?

<p>Vivek Lohia (D)</p> Signup and view all the answers

What is the NSE symbol for Jupiter Wagons Limited?

<p>JWL (B)</p> Signup and view all the answers

What is the primary purpose of the letter sent to the BSE and NSE?

<p>To submit the transcript of the investor/analyst call regarding financial results. (C)</p> Signup and view all the answers

What is the anticipated timeline for delivering the prototypes of the pantograph approved by Indian Railways?

<p>Early next year. (C)</p> Signup and view all the answers

What is the expected annual supply volume of brake systems that Jupiter Wagons is targeting for the next fiscal year?

<p>8,000 to 10,000 brake systems. (D)</p> Signup and view all the answers

What is the existing order book size for brake discs that Kovis JV must fulfill for Indian Railways?

<p>More than 16,000 brake discs. (D)</p> Signup and view all the answers

In which market does Kovis JV have a significant order book for the supply of axle boxes?

<p>European market. (B)</p> Signup and view all the answers

What is the expected order volume of brake systems for LHB passenger coaches that Dako anticipates for the next fiscal year?

<p>500-plus brake systems. (A)</p> Signup and view all the answers

What factor most significantly impacts the ability to meet the target supply of 8,000 to 10,000 brake systems in the next fiscal year?

<p>The speed at which production can be increased. (C)</p> Signup and view all the answers

When is Jupiter Wagons likely to provide more specific figures regarding their production capacities for brake systems?

<p>By the beginning of next year. (C)</p> Signup and view all the answers

How many brake systems did Dako JV have orders for from Indian Railways?

<p>350 brake systems. (A)</p> Signup and view all the answers

What is the primary reason for Jupiter Wagons Limited to invest INR250,000 lakhs in a new facility in Odisha?

<p>To increase the annual capacity of forged wheelsets to a projected INR100,000. (D)</p> Signup and view all the answers

What is a key benefit of Jupiter Wagons Limited developing a new foundry for their wagon manufacturing business?

<p>To bolster production capacity and meet increasing market needs. (C)</p> Signup and view all the answers

Besides wagon manufacturing, which additional segments is Jupiter Wagons Limited scaling up?

<p>Safety systems, track components, and high-speed brake systems. (D)</p> Signup and view all the answers

Within approximately the next 4 years, what percentage of revenue does Jupiter Wagons Limited anticipate will be contributed by non-wagon revenue?

<p>50% (D)</p> Signup and view all the answers

What was the approximate wagon production of Jupiter Wagons Limited in the first half of FY '25?

<p>4,100 wagons (D)</p> Signup and view all the answers

What is the annual target for wagon sales that Jupiter Wagons has set?

<p>10,000 wagons (A)</p> Signup and view all the answers

Compared to Jupiter Wagons Limited, what was the performance of Texmaco in wagon sales during FY '24?

<p>Texmaco had lower sales volume. (B)</p> Signup and view all the answers

What observation did Garvit Goyal from Nvest Analytics Advisory, LLP make about Texmaco's wagon sales in H1 compared to Jupiter Wagon's?

<p>Texmaco's sales in H1 surpassed those of Jupiter Wagons Limited. (D)</p> Signup and view all the answers

What is the primary focus of future substantial capital expenditure (capex) for the company, according to Vivek Lohia?

<p>Wheel capacity expansion. (B)</p> Signup and view all the answers

What range of capital expenditure (capex) is expected for wheel capacity expansion, including GST?

<p>INR35 crores to INR100 crores (A)</p> Signup and view all the answers

According to Vivek Lohia, what is the expectation for EBITDA margins moving forward?

<p>EBITDA margins will remain strong, with potential improvement from non-wagon businesses. (A)</p> Signup and view all the answers

What was the approximate acquisition cost for Log9 assets?

<p>INR40 crores (C)</p> Signup and view all the answers

What primary benefit does the acquisition of Log9 assets provide to the company's truck manufacturing business?

<p>It captures the margins in-house for battery systems, which would have otherwise gone to the industry. (C)</p> Signup and view all the answers

Why is the acquisition of Log9 considered a critical move for the company's electric vehicle (EV) strategy?

<p>It provides core technology for battery systems, a critical component in EVs. (A)</p> Signup and view all the answers

What is the estimated annual market size for non-lithium-ion batteries purchased by the railway sector?

<p>INR1,000 crores to INR1,500 crores (A)</p> Signup and view all the answers

Beyond its application in electric trucks, how does the company expect to utilize the Log9 assets?

<p>To enhance its presence in the railway business, particularly in battery systems. (D)</p> Signup and view all the answers

Jupiter Wagons anticipates a transition to lithium-ion battery packs for their applications within what timeframe?

<p>Within the next 4 to 6 years (A)</p> Signup and view all the answers

Which sector is expected to generate substantial order books for Jupiter Wagons, particularly on the battery side?

<p>Indian Railways (D)</p> Signup and view all the answers

Apart from standard containers, Jupiter Wagons is now directing its focus towards what type of container solutions?

<p>Integrated containers with battery energy storage solutions (B)</p> Signup and view all the answers

For the expansion of wheel capacity, Jupiter Wagons has outlined a debt plan. What is the company's expectation regarding incremental debt beyond what has already been mentioned?

<p>They do not expect any incremental debt beyond what has already been mentioned. (A)</p> Signup and view all the answers

In which specific area of container manufacturing is Jupiter Wagons currently NOT focusing its resources?

<p>Shipping containers (A)</p> Signup and view all the answers

What characterizes the container types that Jupiter Wagons specializes in, differentiating them from standard shipping containers?

<p>Higher value due to specialized engineering and certifications (D)</p> Signup and view all the answers

What is the primary reason Jupiter Wagons is concentrating on specialized containers like battery energy and data center containers, rather than standard shipping containers?

<p>Higher profit margins and value addition in specialized containers (A)</p> Signup and view all the answers

Jupiter Wagons already has a strong order book from which company?

<p>Siemens (D)</p> Signup and view all the answers

What is Vivek Lohia's perspective on the acquisition between Texmaco and Jindal regarding its impact on Jupiter Wagons' business?

<p>He does not expect any major impact beyond the consolidation of numbers, as Jindal was already a competitor. (D)</p> Signup and view all the answers

Why is Vivek Lohia hesitant to provide a detailed breakdown of the INR2,500 crores capex for the Odisha plant from FY '25 to FY '27?

<p>The project's progress and payment milestones will determine the capex distribution. (C)</p> Signup and view all the answers

What is the estimated total capex for Jupiter Wagons across all businesses for the current year?

<p>INR500 crores (A)</p> Signup and view all the answers

What is the primary factor influencing the profitability expectations of Jupiter Wagons?

<p>The combined performance of all the businesses under Jupiter Wagons. (D)</p> Signup and view all the answers

According to Vivek Lohia, what was Jindal's market position before the acquisition with Texmaco?

<p>A primary competitor in the private sector, after Jupiter. (C)</p> Signup and view all the answers

What can be inferred about Jupiter Wagons' export plans based on the discussion?

<p>Exports are a topic of significant interest and activity for Jupiter Wagons. (A)</p> Signup and view all the answers

What is the approximate timeframe Vivek Lohia provides for being able to give a more concrete answer regarding the Odisha plant capex breakdown?

<p>By the middle or third quarter of the next year. (A)</p> Signup and view all the answers

What does Vivek Lohia suggest regarding the impact of the Texmaco and Jindal merger on Jupiter Wagons' market share?

<p>No anticipated market share variations. (A)</p> Signup and view all the answers

Flashcards

Regulation 30

A SEBI regulation requiring disclosure of important events to investors.

SEBI Listing Regulations

Rules established by SEBI for companies listed on stock exchanges in India.

Q2H1-FY2025

Refers to the second quarter and first half of the fiscal year 2025.

Analysts/Investors Call

A meeting to discuss company financial results with analysts and investors.

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Jupiter Wagons Limited

A company that manufactures wagons and related products in India.

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Financial Results

Summary of a company's financial performance over a specific period.

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Conference Call

A telephonic meeting with participants discussing a common agenda.

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Moderator

The person responsible for managing the flow of the conference call.

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Investment in Facility

INR250,000 lakhs allocated for a new state-of-the-art facility in Odisha.

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Annual Capacity Expansion

Increase from INR20,000 to projected INR100,000 forged wheelsets.

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Independence from Imports

Expansion supports supply of domestically produced rail components.

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Foundry Development

Strategic investment in new foundry for wagon manufacturing support.

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Freight Wagon Demand

Increasing need for freight wagons in the market.

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Non-Wagon Revenue

Expected to contribute 50% of revenue within 4 years from segments like safety systems.

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Target Wagon Sales

Company aims to sell over 10,000 wagons in FY '25.

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Market Competition

Comparison of sales with a peer company, Texmaco, revealing competitive market dynamics.

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Capex Guidance

Projected capital expenditure, especially for wheel capacity.

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Wheel Capacity Investment

Focus on increasing production capabilities specifically for wheels.

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Replacement Capex

Capital spending aimed at replacing existing equipment rather than expanding capacity.

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EBITDA Margins

Earnings before interest, taxes, depreciation, and amortization as a percentage of revenue.

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Log9 Acquisition Cost

The amount paid for Log9 assets, close to INR40 crores.

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Revenue Potential from Log9

Expected income from Log9 assets, largely captive used in truck battery systems.

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Core Technology for Electric Vehicles

Critical components like battery systems that are essential for EV functionality.

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Railway Battery Purchases

Annual expenditure on batteries by railways, estimated between INR1,000 crores - INR1,500 crores.

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Lithium-ion Battery Packs

Battery technology used widely in electric vehicles and energy storage.

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Vande Bharat

A semi-high speed train service in India designed for faster travel between cities.

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Order Book

A record of orders received by a company indicating future revenue.

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Integrated Containers

Containers that combine multiple functions or technologies, such as energy storage.

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Capital Expenditure (Capex)

Funds used by a company to acquire or upgrade physical assets.

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Battery Energy Storage Solutions

Technologies designed to store power generated from renewable energy for later use.

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Data Center Containers

Specialized containers housing servers and IT equipment for data management.

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Maritime Infrastructure

Facilities and structures required for maritime transport, such as ports and shipping containers.

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Recent Acquisition

The merger between Texmaco and Jindal in the industry.

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Impact on Industry

No significant changes expected due to the merger.

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Market Share

Portion of the market controlled by a company.

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Yearly Capex (Capital Expenditure)

The total investment planned for business operations annually.

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Odisha Plant Investment

INR 2,500 crores planned for the Odisha facility.

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Capex Projections FY '25 to FY '27

Financial forecast for capital expenditure in upcoming years.

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Current Year Capex

Estimated INR 500 crores for this financial year.

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Export Front

Refers to the business activities related to selling goods internationally.

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Pantograph Approval

The pantograph by Stone India has been approved by Indian Railways.

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Brake Systems for Freight

Stone India expects to renew licenses and supply brake systems for freight.

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Brake Systems Supply Target

The target is to supply 8,000 to 10,000 brake systems next fiscal year.

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Order Books in Kovis

Kovis has over 16,000 brake discs ordered by Indian Railways.

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Dako Orders

Dako has an order for 350 brake systems from Indian Railways to complete this fiscal year.

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LHB Passenger Coaches

Expect orders of over 500 brake systems for LHB coaches next fiscal year.

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Wagon Production Ramp-Up

The production of wagons has increased significantly.

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Private Sector Wagon Orders

Discussion on the pipeline for private sector wagon orders.

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Study Notes

Jupiter Wagons Limited Investor/Analyst Meet

  • Date: November 14, 2024
  • Event: Investor/Analyst Meet call pertaining to Q2H1 FY2025 Financial Results
  • Key Participants: Vivek Lohia (Managing Director), Sanjiv Keshri (CFO).
  • Regulation: The call was conducted in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations).
  • Transcript: A transcript of the Q2/H1 FY25 earnings call is available on the company's website (www.jupiterwagons.com).
  • Financial Highlights:
    • Revenue from operations in Q2FY25 was INR1,00,904 lakhs, up 14.8% year-on-year.
    • EBITDA for Q2 FY25 was INR13,945 lakhs, an increase of 15.5% year-on-year, with a margin of 13.8%.
    • Profit after tax (PAT) in Q2 FY25 was INR8,936 lakhs, growing by 8.9% year-on-year, with a margin of 8.8%.
    • H1 FY25 revenue was INR1,88,890 lakhs, up 15.7% compared to the previous year.
    • H1 FY25 EBITDA was INR27,613 lakhs with a 14.8% increase compared to the previous year's 13.3% margin.
    • H1 FY25 PAT was INR18,125 lakhs.
    • Order book of INR6,64,336 lakhs as of September 30, 2024.
  • Key Acquisitions/Developments:
    • Jupiter Electric Mobility (JEM) acquired Log9's advanced battery assets.
    • Rebranded Bonatrans India Private Limited to Jupiter Tatravagonka Railwheel Factory Private Limited. Plans to invest INR250,000 for a new facility in Odisha.
  • Wagon Sales:
    • Sold approximately 4,100 wagons in H1FY25.
    • Aiming to sell over 10,000 wagons in FY25.

Q&A Highlights

  • Wagon Orders: The company has a strong order pipeline for wagons from Indian Railways.
  • Commercial Vehicles: The company aims to sell over 1,000 commercial vehicles in FY25.
  • Sales Targets: Management stated confidence in meeting FY25 sales targets.
  • Non-Wagon Business: Aiming for a significant share of the revenue (50%) from non-wagon segments in the next four years.
  • Non-wagon Business Growth: Growth in non-wagon segments expected.
  • EBITDA: Management noted the company is comfortable that EBITDA margins would remain strong, with increased revenue from non-wagon segments.
  • Capex: Capex for non-wagon ventures will be substantial. The company will allocate funds toward the Odisha plant in the current year & next.

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