Podcast
Questions and Answers
What primary factor contributes to the company's competitive advantage in the specialized wagon market?
What primary factor contributes to the company's competitive advantage in the specialized wagon market?
Which of the following best describes the company's strategy for sustaining and improving EBITDA margins?
Which of the following best describes the company's strategy for sustaining and improving EBITDA margins?
How does the company plan to leverage backward integration to enhance its financial performance?
How does the company plan to leverage backward integration to enhance its financial performance?
What factor is believed to have influenced the Commercial Vehicle segment, leading to adjustments in demand?
What factor is believed to have influenced the Commercial Vehicle segment, leading to adjustments in demand?
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What can be inferred about the company's approach to product innovation in the wagon market?
What can be inferred about the company's approach to product innovation in the wagon market?
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What impact is the wheel business expected to have on the company's financial performance?
What impact is the wheel business expected to have on the company's financial performance?
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By what time frame does Vivek Lohia expect Jupiter Wagons to begin rolling out their electric vehicles (EVs)?
By what time frame does Vivek Lohia expect Jupiter Wagons to begin rolling out their electric vehicles (EVs)?
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Beyond design capabilities, what other element gives the company an advantage over its competition?
Beyond design capabilities, what other element gives the company an advantage over its competition?
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What level of localization is Jupiter Wagons aiming for with the production of its electric vehicles (EVs)?
What level of localization is Jupiter Wagons aiming for with the production of its electric vehicles (EVs)?
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What financial benefit will Jupiter Wagons' electric vehicles (EVs) be eligible for due to their level of localization?
What financial benefit will Jupiter Wagons' electric vehicles (EVs) be eligible for due to their level of localization?
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What is the significance of the company starting supplies for new wagon types like fly ash and auto rake wagons?
What is the significance of the company starting supplies for new wagon types like fly ash and auto rake wagons?
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What is the current gross debt of Jupiter Wagons on a consolidated basis?
What is the current gross debt of Jupiter Wagons on a consolidated basis?
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What is the relationship between specialized wagon deliveries and the company's financial outlook?
What is the relationship between specialized wagon deliveries and the company's financial outlook?
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What revenue target did Jupiter Wagons set for its brake segment in FY'25?
What revenue target did Jupiter Wagons set for its brake segment in FY'25?
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According to the call, what is the value of Kovis and Dako's execution in the current quarter?
According to the call, what is the value of Kovis and Dako's execution in the current quarter?
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When does Vivek Lohia anticipate the completion of the expansion project?
When does Vivek Lohia anticipate the completion of the expansion project?
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What is Jupiter Wagons' current focus regarding lithium-ion battery technology?
What is Jupiter Wagons' current focus regarding lithium-ion battery technology?
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What is the company's projected production target for wagons for the entire year?
What is the company's projected production target for wagons for the entire year?
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What is Jupiter Wagons' strategy regarding lithium-ion battery technology?
What is Jupiter Wagons' strategy regarding lithium-ion battery technology?
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According to Vivek Lohia, which factor is expected to significantly boost the demand for the company's EV product?
According to Vivek Lohia, which factor is expected to significantly boost the demand for the company's EV product?
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In which market segment does the company initially plan to focus its electric vehicle sales?
In which market segment does the company initially plan to focus its electric vehicle sales?
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What information does Shrinidhi Karlekar from HSBC seek regarding Jupiter Wagons' wheelset business?
What information does Shrinidhi Karlekar from HSBC seek regarding Jupiter Wagons' wheelset business?
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What does Vivek Lohia confirm regarding the company's expansion plans?
What does Vivek Lohia confirm regarding the company's expansion plans?
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What is the company's outlook on competition in the electric vehicle segment they are entering?
What is the company's outlook on competition in the electric vehicle segment they are entering?
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When does the company plan to start building its order book for the EV product?
When does the company plan to start building its order book for the EV product?
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What key element is Jupiter Wagons prioritizing in their approach to lithium-ion battery technology before broader implementation?
What key element is Jupiter Wagons prioritizing in their approach to lithium-ion battery technology before broader implementation?
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What is the expected number of EV units the company plans to produce in the initial financial year?
What is the expected number of EV units the company plans to produce in the initial financial year?
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Which aspect of the wheelset market is Shrinidhi Karlekar particularly interested in understanding?
Which aspect of the wheelset market is Shrinidhi Karlekar particularly interested in understanding?
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What factor, other than market demand, has historically impacted the company's production?
What factor, other than market demand, has historically impacted the company's production?
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What is the significance of Bonatrans in the context of the wheelset business, according to Shrinidhi Karlekar's question?
What is the significance of Bonatrans in the context of the wheelset business, according to Shrinidhi Karlekar's question?
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What reassurance does Vivek Lohia provide regarding the company's production capabilities?
What reassurance does Vivek Lohia provide regarding the company's production capabilities?
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Which of the following statements best reflects Vivek Lohia's outlook on achieving the disclosed financial targets?
Which of the following statements best reflects Vivek Lohia's outlook on achieving the disclosed financial targets?
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How does Bonatrans distribute its wheelsets across different sectors, according to Vivek Lohia?
How does Bonatrans distribute its wheelsets across different sectors, according to Vivek Lohia?
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Based on the discussion, what is the estimated internal wheelset requirement for Jupiter Wagons, considering their wagon production plans?
Based on the discussion, what is the estimated internal wheelset requirement for Jupiter Wagons, considering their wagon production plans?
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When does Vivek Lohia expect Stone India to commence commercial production?
When does Vivek Lohia expect Stone India to commence commercial production?
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What approximate value of orders does Vivek Lohia mention Dako already has?
What approximate value of orders does Vivek Lohia mention Dako already has?
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Apart from captive use, which sectors does Bonatrans supply wheelsets to?
Apart from captive use, which sectors does Bonatrans supply wheelsets to?
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Which companies' businesses are included in the financial target of INR 200 to INR 250 crores mentioned by Vivek Lohia?
Which companies' businesses are included in the financial target of INR 200 to INR 250 crores mentioned by Vivek Lohia?
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Approximately when did Vivek Lohia mention the financial target of INR 200 crores to INR 250 crores would be achieved?
Approximately when did Vivek Lohia mention the financial target of INR 200 crores to INR 250 crores would be achieved?
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According to Vivek Lohia, what is the current estimated size of the global container business?
According to Vivek Lohia, what is the current estimated size of the global container business?
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What is the projected growth of the global container business in the next 3 years, according to Vivek Lohia?
What is the projected growth of the global container business in the next 3 years, according to Vivek Lohia?
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Which country is currently the most significant player in the global container business, as stated by Vivek Lohia?
Which country is currently the most significant player in the global container business, as stated by Vivek Lohia?
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What is the Indian government's current focus regarding the container business, according to Vivek Lohia?
What is the Indian government's current focus regarding the container business, according to Vivek Lohia?
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Aakash mentions that Jupiter's container revenue was INR130 crores to INR140 crores last year. What specific guidance does Vivek Lohia provide on whether this number can increase by FY'26, FY'27?
Aakash mentions that Jupiter's container revenue was INR130 crores to INR140 crores last year. What specific guidance does Vivek Lohia provide on whether this number can increase by FY'26, FY'27?
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Aakash inquires about the potential CAGR for non-Wagon revenue (excluding wagons). What growth rate does Vivek Lohia suggest is comfortable?
Aakash inquires about the potential CAGR for non-Wagon revenue (excluding wagons). What growth rate does Vivek Lohia suggest is comfortable?
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By what year does Vivek Lohia expect the non-Wagon business to contribute to more than 50% of Jupiter's revenues?
By what year does Vivek Lohia expect the non-Wagon business to contribute to more than 50% of Jupiter's revenues?
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Which of the following is included in the non-Wagon revenue that Vivek Lohia refers to?
Which of the following is included in the non-Wagon revenue that Vivek Lohia refers to?
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Flashcards
Private Sector Demand
Private Sector Demand
The total demand for goods and services in the private sector, currently strong and increasing.
Specialized Wagons
Specialized Wagons
Wagons designed for specific needs, such as fly ash transport and auto rakes.
Competitive Intensity
Competitive Intensity
The level of competition within a market affecting businesses.
Forward Integration
Forward Integration
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Backward Integration
Backward Integration
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EBITDA Margin
EBITDA Margin
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Wheel Business Contribution
Wheel Business Contribution
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Margins Sustainability
Margins Sustainability
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Q3FY25 Completion
Q3FY25 Completion
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Lithium-Ion Battery Initiative
Lithium-Ion Battery Initiative
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Technology Development
Technology Development
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Market Demand for Wheelsets
Market Demand for Wheelsets
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Incremental Demand
Incremental Demand
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Bonatrans Role
Bonatrans Role
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Expansion Plans
Expansion Plans
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Dako Business Orders
Dako Business Orders
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Indian Railways Tenders
Indian Railways Tenders
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Kovis Business Expansion
Kovis Business Expansion
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Stone India Production
Stone India Production
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Bonatrans Wheelsets
Bonatrans Wheelsets
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LHB Applications
LHB Applications
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Wagon Production Plan
Wagon Production Plan
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Captive vs. External Use
Captive vs. External Use
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EV Business Update
EV Business Update
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Localisation in EVs
Localisation in EVs
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FAME Subsidy Eligibility
FAME Subsidy Eligibility
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Stone India Developments
Stone India Developments
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Net Debt Figure
Net Debt Figure
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Brake Segment Revenue Target
Brake Segment Revenue Target
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Order Book Execution
Order Book Execution
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Incremental Orders
Incremental Orders
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Production Targets
Production Targets
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EV Pilot Exercise
EV Pilot Exercise
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Market Demand for EVs
Market Demand for EVs
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B2B Segment Focus
B2B Segment Focus
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Order Book Expectations
Order Book Expectations
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Production Timeline
Production Timeline
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Competition Analysis
Competition Analysis
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Initial Production Units
Initial Production Units
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Total Addressable Market
Total Addressable Market
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Gigawatt Business
Gigawatt Business
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Projected Growth
Projected Growth
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Indian Market Potential
Indian Market Potential
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Non-Wagon Revenue
Non-Wagon Revenue
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CAGR
CAGR
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Future Revenue Contribution
Future Revenue Contribution
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Revenue Focus Areas
Revenue Focus Areas
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Study Notes
Jupiter Wagons Limited Q1 FY25 Earnings Conference Call
- Date: July 26, 2024
- Management: Vivek Lohia (Managing Director), Puneet Saboo (Vice President, Finance)
- Q1 FY25 Financial Highlights:
- Total Income: INR 90,219 lakhs (19% YoY increase)
- EBITDA: INR 12,886 lakhs (32% YoY increase)
- EBITDA Margin: 14.4% (up from 12.9% in Q1 FY24)
- PAT: INR 8,923 lakhs (40% YoY increase)
- PAT Margin: 9.9% (up from 8.7% in Q1 FY24)
- Consolidated EBITDA Margin: 15.5%
- Order Book: INR 7,02,834 lakhs as of June 30, 2024
Competitive Landscape and Strategy
- Competitive Intensity: Significant competition exists, but Jupiter's forward integration, partnerships (GATX, Tatravagonka), and design capabilities provide an edge.
- Focus on Sustainability and Innovation: The company emphasizes sustainable mobility solutions, including energy-efficient battery solutions for rail coaches, and collaboration with Log9 Materials.
- Backward Integration: Jupiter is focused on integrating its manufacturing process, specifically with a target to manufacture 1 lakh wheelsets annually.
- Expansion Plans: Expansion into export markets is planned, with Jupiter aiming for 10,000 wagons produced this year.
Key Business Segments
- Wagon Manufacturing: Significant order book (INR 10,000 crores), strong growth expected
- Wheels and Axles (Bonatrans): Focus on forging, increasing capacity (30,000 wheelsets this year), potential for export markets
- Electric Locomotives (Jupiter Electric Mobility): 6-month trials complete for LFP batteries (lithium-ion phosphate batteries); already received certification for these; aim for 500 units initial production
- Commercial Vehicles and Container Business: A focus on specific niches (e.g. containers for data centers), and growth opportunities.
Financial Performance and Outlook
- Debt: Gross debt: INR 450 Crore and Net debt: INR 300 Crore
- Order Inflows: Order pipeline expected to remain strong despite occasional delays (due to elections, weather or other reasons)
- Margins: Profit margins are projected to remain sustainable at around 15% or above. The company anticipates improvements from additional contributions in their various business verticals.
- Revenue Projections: The company projects revenue between INR 5,000 crores and INR 6,000 crores.
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Description
Key highlights from Jupiter Wagons' Q1 FY25 earnings call. The company reported a 19% YoY increase in total income and a 32% YoY increase in EBITDA. It focuses on sustainability, innovation and design capabilities.