Jupiter Wagons

Jupiter Wagons reported robust financial performance for Q2 and H1 FY25. For Q2 FY25, revenue from operations grew by 14.8% YoY to INR 1,009.04 crores, with EBITDA increasing by 15.5% YoY to INR 139.45 crores, achieving an EBITDA margin of 13.8%. PAT for the quarter rose by 8.9% YoY to INR 89.36 crores. For the first half of FY25, revenue reached INR 1,888.90 crores (15.7% YoY growth), EBITDA grew by 27% YoY to INR 276.13 crores with a margin of 14.8%, and PAT increased by an impressive 25% YoY to INR 181.25 crores.

The company is actively diversifying its portfolio, notably through the acquisition of Log9's advanced battery assets for approximately INR 40 crores via its subsidiary, Jupiter Electric Mobility. This acquisition aims to strengthen in-house battery production for electric trucks and railway solutions, including Vande Bharat orders. Additionally, Bonatrans India Private Limited was rebranded as Jupiter Tatravagonka Railwheel Factory Private Limited, signaling a strategic focus on becoming a leader in India's rail wheel manufacturing industry.

Jupiter Wagons plans a substantial investment of INR 2,500 crores to establish a new state-of-the-art facility in Odisha. This expansion will significantly increase the annual capacity for forged wheelsets from 20,000 to a projected 100,000 units. Management expects wheel business revenue to reach INR 300-400 crores in FY25 and further grow to approximately INR 700 crores in FY26, with capacity reaching 25,000 wheelsets by FY25 end.

The company is bullish on its electric mobility segment, with plans to launch its 1-ton payload truck (2.5-ton GVW) by Q3 end, targeting sales of over 1,000 vehicles in the calendar year. Two additional higher payload trucks (2-ton and 3-ton) are expected to launch within FY26. The Log9 acquisition is crucial for in-house battery production, which constitutes about 50% of an EV's cost, and also supports the railway battery segment, including Vande Bharat orders.

Jupiter Wagons' brake systems business, including its JVs Kovis and Dako, shows strong order books. For Stone India, approvals for freight brake systems are expected by FY25 end, with a target to supply 8,000-10,000 brake systems in FY26. Dako expects orders for over 500 brake systems for LHB passenger coaches in FY26. The combined turnover from all three JVs (Kovis, Dako, Stone India) is projected to be between INR 300 crores and INR 500 crores for FY25.

The company's order book remains robust at INR 6,643.36 crores as of September 30, 2024, representing approximately 18 months of execution. Management is confident in achieving its target of selling close to 10,000 wagons in FY25 and aims to ramp up to 10,000-12,000 cars in FY26. Non-wagon segments are anticipated to contribute approximately 50% of total revenue within the next four years, indicating a balanced and diversified growth strategy.

Jupiter Wagons plans a total capex of approximately INR 500 crores for FY25 across all businesses. A significant portion of this, between INR 35 crores and INR 100 crores, is allocated for wheel capacity expansion. Management confirmed that the company does not anticipate taking on incremental debt beyond what has already been mentioned for these expansion projects, indicating a focus on internal accruals and existing funding plans.