Jupiter Wagons (JWL) Q4 14/15 earnings summary

Executive summary

• FY15 was subdued: gross sales fell 18% YoY to ₹152.38 crore amid weak demand, price pressure, working-capital shortages and delivery issues. Loss after exceptional items and tax widened to ₹102.55 crore.

• A ₹63 crore non-cash impairment charge drove the larger reported loss; loss before exceptional items and tax improved to ₹60.36 crore from ₹67.73 crore.

• Management prioritized cost reduction, production rationalization and working-capital improvement, and expected a better performance in FY16 as infrastructure and industrial demand improved.

Financial highlights

• Gross sales ₹152.38 crore vs ₹185.37 crore in FY14; net sales excluding excise duty ₹118.44 crore vs ₹138.86 crore.

• Total revenue ₹120.84 crore vs ₹141.55 crore; total expenses ₹181.20 crore vs ₹209.28 crore.

• EBITDA was negative ₹20.94 crore, with a negative 19% margin; EBIT was negative ₹38.80 crore and finance costs were ₹21.57 crore.

• PAT loss was ₹102.55 crore vs ₹70.43 crore in FY14; EPS was negative ₹7.20 before exceptional items and negative ₹18.66 after exceptional items.

• Operating cash flow was positive ₹8.85 crore; cash and cash equivalents ended FY15 at ₹4.69 crore.

Outlook and guidance

• SIAM projected FY16 growth of 13%–15% for M&HCVs and 3%–5% for LCVs; management expected M&HCV momentum and fully built vehicle demand to continue.

• Higher heavy-fabrication orders were anticipated as power-project activity picked up; railway refurbishment and component supply were expected to advance while new-wagon pricing remained unviable.

• Planned priorities included regaining share in fully built vehicles, adding product applications, reducing costs and improving working-capital management.