Shares of Jupiter Wagons were locked in 5% upper circuit limit at ₹233 apiece in early trade on Tuesday. This was in response to the company's robust performance in Q1FY24.
During the quarter the company reported a 384% YoY surge in its consolidated net profit to ₹63 crore. Sequentially, the net profit improved by 61.5%. Its revenue from operations surged to ₹753 crore, a growth of 155% YoY.
EBITDA came in at ₹97 crore as against ₹30 crore reported in the same period of last year, while the EBITDA margin expanded by 300 basis points YoY to 13%.
Commenting on the results, Vivek Lohia, Managing Director of Jupiter Wagons Limited, said, "We are delighted to commence FY24 on a strong note, with several exciting developments in the first quarter."
"Our bid for Stone India has received NCLT approval. We see several synergies from the addition of this entity to our group and will endeavor to rapidly restore the operational momentum."
"We have stepped into the global markets for freight wagons through our long-term MoU with RITES Ltd., following which we participated in global tenders in Zimbabwe and Mozambique. We have received our first order for Weldable CMS crossings and are set to rollout production shortly. We have commenced delivery of Brake Disc assemblies this quarter and foresee strong traction for these products going forward," he added.
Jupiter Wagons Limited (JWL) is an integrated railway engineering company that primarily manufactures freight wagons for the Indian Railways. Over time, the company has diversified into the manufacturing of application-based load bodies on commercial vehicles, braking systems, and marine containers for domestic and international use.
The company's shares have delivered exceptional returns to their shareholders over the last three-year period. From its July 2020 low of ₹11.65, the stock has skyrocketed 1900% to trade at the current price of ₹233 apiece, while in the last five years, it has rewarded shareholders with a return of nearly 1685%.
The company received orders for freight wagons comprising volumes of 2,150 wagons aggregating to approximately ₹10,600 crore from private parties during Q1FY24. The company expects the momentum to sustain in the near future.
Further, there is an impending global tender to be launched by the Indian Railways, which is anticipated to be of substantial scale and incorporating a multi-year maintenance commitment. All indications are that Indian Railways will also be procuring close to 40,000 additional conventional wagons very shortly, the company said in a regulatory filing.
The company's subsidiary, Jupiter Electric Mobility (JeM), has been onboarded as a vendor with Siemens India for the supply of Lithium-Ion battery for Vande Bharat trains.
The company said, JeM is also undergoing trials with the Research Designs and Standards Organisation (RDSO) for the supply of battery to Indian Railways for Linke Hofmann Busch (LHB) coaches.
In the Marine Container Business, the company is witnessing high interest in specialised containers. It secured a contract for 40 Feet ‘Open Top, Coil Containers’ with a pilot order worth ₹10 crore.
Further, It also received a Letter of Intent (LOI) from an Indian subsidiary of a prestigious global group for the supply of 1,000 units of special Flex Inverter containers for the fiscal year 2024–25, according to company's regulatory filing.
The company is focusing efforts on achieving Import Substitution, particularly in the areas of high-tech and high-end containers.
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