Jupiter Wagons (JWL) Q4 13/14 earnings summary

Executive summary

• FY14 gross sales fell 68.60% YoY to Rs 18,536.94 lakh; net loss after tax was Rs 7,043.08 lakh versus profit after tax of Rs 1,850.56 lakh in FY13.

• Weaker commercial-vehicle orders, infrastructure delays and constrained working capital drove losses; management cited sizable CV orders and expected a FY15 recovery, while Q1 FY15 still recorded a Rs 16.91 crore loss.

Financial highlights

• Net revenue from operations was Rs 13,885.99 lakh vs Rs 50,290.15 lakh YoY; total revenue was Rs 14,154.70 lakh vs Rs 50,428.56 lakh.

• EBITDA was negative Rs 21.40 crore vs positive Rs 64.96 crore in FY13; EBIT was negative Rs 48.78 crore vs Rs 49.64 crore.

• PBT was a loss of Rs 6,773.11 lakh vs profit of Rs 3,350.11 lakh; PAT was a loss of Rs 7,043.08 lakh vs profit of Rs 1,850.56 lakh.

• Finance costs were Rs 1,895.32 lakh vs Rs 1,613.53 lakh; depreciation and amortisation rose to Rs 3,006.43 lakh from Rs 1,670.31 lakh.

• Operating cash flow was Rs 7,063.24 lakh vs Rs 5,860.06 lakh, supported by lower inventories and receivables; cash and cash equivalents declined to Rs 1,130.18 lakh from Rs 3,398.31 lakh.

Outlook and guidance

• Management expected FY15 improvement, citing a revived CV market and sizable vehicle orders to execute; Q1 FY15 nevertheless had gross sales of Rs 42.34 crore and a loss of Rs 16.91 crore.

• FY15 priorities included increasing FBV sales across tippers, tankers, cargo bodies and refrigerated vehicles, and growing railway and heavy-fabrication sales.

• Growth expectations depended on infrastructure and road investment, mining-sector reopening, railway procurement and policy measures, as well as credit-facility extensions and enhancements under discussion with bankers.