Jupiter Signed Key MOU with Rites in the 2023-24 Fiscal Year

In 2023-24, Jupiter Wagons Ltd. (JWL) signed a key MOU with RITES Limited to explore global railway rolling stock projects with a prime focus on Zimbabwe and Mozambique. 

by Damodharan N

Updated Jun 27, 2024

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Jupiter Signed Key MOU with Rites in the 2023-24 Fiscal Year

In the fiscal year 2023-24, Jupiter Wagons Ltd. (JWL) made a significant move by signing a key Memorandum of Understanding (MOU) with RITES Limited. This partnership aims to explore global opportunities in railway rolling stock projects.

Together, JWL and RITES are targeting international markets such as Zimbabwe and Mozambique for the supply of approximately 620 freight wagons. They anticipate securing an export order for around 1,000 freight wagons by the end of 2024. This strategic initiative marks JWL's entry into global markets and underscores its focus on designing, manufacturing, and supplying railway wagons.

Read the Full Press Release  

Read the full Investors Presentation Document  

Jupiter Wagons Financials for FY 23-24 

Jupiter Wagons in their Report highlighted the key finances for the investors let look at tha raw data of the company. 

Profit:

The company profit for the last fiscal with key metrics is given below. 

  • Gross Profit: INR 8,147 million
  • Gross Margin: 22.36%
  • EBITDA: INR 4,893 million (EBITDA Margin: 13.43%)
  • Profit Before Tax (PBT): INR 4,419 million
  • Profit After Tax (PAT): INR 3,310 million (PAT Margin: 9.08%)

Category

Details

Revenue

 

Total Revenue

INR 36,683 million

Year-on-Year Growth

76.93%

Expenses

 

Material Costs

INR 28,461 million

Total Expenses

INR 31,545 million

Key Ratios

 

Return on Equity (ROE)

24.9%

Return on Capital Employed (ROCE)

21.6%

Debt to Equity Ratio

0.21

Balance Sheet

 

Total Assets

INR 29,400 million

Total Equity

INR 16,316 million

Total Liabilities

INR 13,084 million

Current Assets

 

Inventories

INR 9,835 million

Trade Receivables

INR 4,908 million

Cash and Cash Equivalent

INR 1,225 million

Key Developments FY 23-24

In the Investor's presentation meet the company has highlighted key Developments in that happened in the last fiscal 

  1. Partnerships:
    • Colway Ferroviaria S.L. (Spain): For manufacturing high-speed passenger coach interiors and modern toilet systems.
    • Tatravagonka A.S. (Czech Republic and Slovakia): For manufacturing wagons.
    • LAF-CIM Group (France): For manufacturing centre buffer couplers with balanced draft gears.
    • Talleres Alegría S.A. (Spain): For Weldable cast manganese steel crossings for both broad gauge and metro.
  2. Operational Highlights:
    • Revenue and profitability saw substantial growth with a 76.93% increase in total revenue and a 166.8% increase in reported PAT.
    • Significant investments in expanding manufacturing capabilities and entering new markets.
  3. Government Initiatives Impact:
    • The government’s initiatives for private sector investments in railways, including policies allowing private procurement and operation of special purpose rakes and leasing of railway wagons, positively impacted Jupiter Wagons' operations and growth​.

These points provide a clear overview of Jupiter Wagons' financial performance and key developments in FY 23-24.

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Rites

RITES Limited, established in 1974 under the Ministry of Railways, is a prominent engineering and consultancy firm in India. It offers a wide spectrum of services encompassing transport infrastructure and related technologies, from initial concepts to project completion.

Known for its expertise in railways, highways, metros, tunnels, bridges, and more, RITES has grown into one of India's top 500 listed companies, reflecting its high standards of service and extensive market presence. Internationally, RITES operates in over 55 countries across Asia, Africa, Latin America, and the Middle East, serving as the export arm of Indian Railways for rolling stock.

The company emphasizes sustainable mobility solutions aligned with India's national goals, executing over 5,000 projects including notable feats like the Bogibeel Bridge and various metro systems and ports across the country.

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Jupiter Wagons Limited

Jupiter Wagons Limited (JWL), headquartered in Kolkata, West Bengal, specializes in manufacturing a wide range of mobility solutions, primarily focused on railway wagons and associated components.

Established through the merger with Commercial Engineers & Body Builders Co. Private Limited in 2019, JWL produces freight wagons, high-speed bogies, couplers, draft gears, and railway castings.

It operates advanced manufacturing facilities in Kolkata, Jamshedpur, Indore, and Jabalpur, with capabilities including foundry operations for full backward integration. The company's product portfolio extends to passenger coaches, braking systems, metro coaches, commercial vehicles, ISO marine containers, and more, serving diverse industries like railways, automotive, transportation, logistics, and infrastructure.

With over four decades of industry experience, JWL has cultivated partnerships with global leaders such as Tatravagonka (Slovakia), DAKO-CZ (Czech Republic), and Telleres Alegria S.A (Spain), enhancing its technological prowess and market reach.

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Jupiter Signed Key MOU with Rites in the 2023-24 Fiscal Year - FAQs

1. What is the purpose of the MOU between Jupiter Wagons Ltd. and RITES?      

To explore global opportunities in railway rolling stock projects.

2. Which international markets are targeted by Jupiter Wagons Ltd. and RITES?  

The  international markets  targeted by Jupiter Wagons Ltd. and RITES are Zimbabwe and Mozambique.

3. How many freight wagons are expected to be exported by the end of 2024?  

The freight wagons are expected to be exported  Approximately 1,000 freight wagons.

4. What was Jupiter Wagons' gross profit for FY 23-24?  

Jupiter Wagons' gross profit for FY 23-24 is INR 8,147 million.

5. What was Jupiter Wagons' gross margin for FY 23-24?  

Jupiter Wagons' gross margin for FY 23-24 is 22.36%.

6. What was the EBITDA for Jupiter Wagons in FY 23-24?  

The EBITDA for Jupiter Wagons in FY 23-24 is INR 4,893 million.

7. What was the total revenue for Jupiter Wagons in FY 23-24?  

 The total revenue for Jupiter Wagons in FY 23-24 is INR 36,683 million.

8. What was the year-on-year revenue growth for Jupiter Wagons in FY 23-24?      

 The year-on-year revenue growth for Jupiter Wagons is 76.93%.

9. What were the material costs for Jupiter Wagons in FY 23-24?  

the material costs for Jupiter Wagons in FY 23-24 is INR 28,461 million.

10. What was the total expenses for Jupiter Wagons in FY 23-24?  

The total expenses for Jupiter Wagons in FY 23-24 is INR 31,545 million.

11. What was the Return on Equity (ROE) for Jupiter Wagons in FY 23-24?  

 The Return on Equity (ROE) for Jupiter Wagons in FY 23-24 is 24.9%.

12. What was the Debt to Equity Ratio for Jupiter Wagons in FY 23-24?  

The Debt to Equity Ratio for Jupiter Wagons in FY 23-24 is 0.21.

13. What were Jupiter Wagons' total assets in FY 23-24?  

 Jupiter Wagons' total assets in FY 23-24 is INR 29,400 million.

14. What were Jupiter Wagons' total liabilities in FY 23-24?      

Jupiter Wagons' total liabilities in FY 23-24 is INR 13,084 million.

15. Which Spanish company did Jupiter Wagons partner with for high-speed passenger coach interiors?  

 Jupiter Wagons partners with  Colway Ferroviaria S.L. for high-speed passenger coach interior

16. What was a major operational highlight for Jupiter Wagons in FY 23-24?  

The Major operational highlight was 76.93% increase in total revenue.

17. What impact did government initiatives have on Jupiter Wagons?  

 The government initiatives in procurement, domestic capability building and export incentive schemes  had a positive impact on operations and growth.

18. What year was RITES Limited established?  

 RITES Limited was established in 1974.

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