Jupiter Wagons (JWL) Q4 11/12 earnings summary

Executive summary

• FY12 gross sales rose 117.97% to ₹653.73 crore; net profit increased to ₹40.80 crore from ₹5.70 crore, following recovery in FBV volumes and near-full capacity use.

• Growth plans span FBVs, railway rolling stock and power structurals; capacity additions and railway approvals set up FY13 expansion.

Financial highlights

• Net revenue from operations was ₹468.64 crore, up from ₹216.74 crore; total revenue including other income was ₹470.91 crore versus ₹219.59 crore.

• EBITDA was ₹70.21 crore versus ₹17.54 crore; PBT rose to ₹56.78 crore from ₹7.27 crore, and PAT to ₹40.80 crore from ₹5.70 crore.

• Basic and diluted EPS increased to ₹7.43 from ₹1.18.

• Operating cash flow was ₹56.85 crore; investing cash outflow was ₹132.54 crore and financing cash inflow ₹55.46 crore.

Outlook and guidance

• FY13 expected to reflect the FBV capacity expansion, initial wagon manufacturing and delivery of power structural work.

• FBV capacity was being expanded by nearly 10,000 vehicles, expected online by September 2012; management projected the FBV market could grow from ~₹1,200 crore to ~₹8,000 crore over five years.

• Railway plant capacity is 1,200 wagons and 150 coaches; management anticipated initial Indian Railways orders of 250–500 wagons under tendering norms.

• Management expected a working-capital cycle of 2.5 months and higher revenue from recently added fixed assets.