Jupiter Wagons Q3 Results Review- A Perfect Train With Engine, Coaches, Guard; Maintain Buy: Systematix

Systematix Report

Jupiter Wagons Ltd.'s continued to deliver a robust set of numbers as Ebitda/profit after tax saw a strong growth of 55.2%/82.7% YoY led by higher volume growth and further margin expansion.

Consolidated revenue stood at Rs 8,958 million, up 39%/1.9% YoY/QoQ due to a sharp jump in manufacturing performance across business segments, despite the 10- day production loss on account of festive seasons during Q3 FY24. Gross margins scaled up by 21 basis points/129 bps YoY/QoQ to a healthy 23.1% owing to higher execution of private wagons which led to an Ebitda growth of 55.2% YoY (plus 3% QoQ) to Rs 1,243.7 million, Jupiter Wagons maintained its leadership in Ebitda margin with 13.9%, up 145 bps yoY/16 bps QoQ.

The order book grew massively to Rs 70.7 billion (89% for wagons) in Q3 FY24 versus Rs 59.5 billion in Q3 FY24 including the new orders from Indian railway for supplying 4000 BOXNS wagons of worth Rs 16.2 billion. Recently in December 2023 the company also successfully completed its QIP (raising Rs 4 billion) for setting up another foundry, working capital requirements and backward integration through inorganic growth.

In terms of execution, number of wagons/CV bodies/CMS crossings/containers manufactured grew 4%/35%/15%/45% QoQ to 1,924/3,273/145/190 units during the quarter.

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