Jupiter Wagons (JWL) Q4 10/11 earnings summary

Executive summary

• FY11 gross sales rose 22.57% YoY to ₹29,533.84 lakh, while PBT fell to ₹727.11 lakh from ₹3,080.11 lakh and PAT to ₹569.94 lakh from ₹2,029.92 lakh.

• Commercial vehicle, railway and power-sector operations were positioned for growth, though FY11 earnings were pressured by delayed railway contracts, lower orders tied to emission-rule changes and higher steel and input costs.

Financial highlights

• Gross sales were ₹29,533.84 lakh vs ₹24,096.30 lakh in FY10; net sales after excise duty were ₹21,216.21 lakh vs ₹18,286.45 lakh.

• PBT was ₹727.11 lakh vs ₹3,080.11 lakh; PAT was ₹569.94 lakh vs ₹2,029.92 lakh.

• Basic and diluted EPS were ₹1.18 each vs ₹4.73; no dividend was recommended, with expansion plans cited.

• Operating cash flow was ₹1,553.01 lakh vs cash used of ₹2,122.20 lakh in FY10; investing activities used ₹11,551.16 lakh, while financing generated ₹12,250.87 lakh.

Outlook and guidance

• Management targeted nearly four-fold revenue growth by 2014 and said Q1 FY12 PAT exceeded full-year FY11 PAT.

• The Deori wagon facility was planned for 1,200-wagon capacity, with commercial production targeted in FY12; a bid was submitted for a tender of ~15,000 wagons.

• Power fabrication target: 2,000 tonnes/month within 18 months; orders from L&T Power and a BHEL vendor code supported the entry into the sector.

• Plans included reducing net current assets from ₹10,708.69 lakh and applying lean manufacturing and Six Sigma initiatives.