JWL Q2FY23 concall highlights
- The company has placed an order of 20,000 wheel sets on foreign buyers. This move will help to reduce the dependency on Indian railways. i.e improvement in working capital cycle.
- Supplied more than 860 wagons in this quarter to Indian railways. Going ahead, company expects the number to improve further.
- CV business to remain stronger due to huge demand from OEMs.
- JWL supplied container to GE India and DP world (world leader in global supply chain solutions). GE exported container out of India for the first time.
- The company’s plant for brake business has been certified by Indian railways and it will be operational by Jan or Feb’23. Expects substantial order from railways in subsequent quarters. Moreover, company has also participated in tenders of 40,000 brake discs.
- Shortlisted for acquisition of Stone India (railroad equipment supplier) by CoC (Commitee of Creditors) .
- EV in CV segment will be launched in Q1FY24.The company believes that this move will be the game changer as more CV’s are run on roads compare to PV’s and this will reduce the fossil fuel consumption. Focusing upto 12 tons axle load vehicles in EV.
- JWL has a order book of 4000 cr and they have added another 500 cr order book in Q2FY23.
- The split of order book between railways and private sector is 50:50 and further increase of orders from private sector will increase the EBITDA margins.
- Lastly, on industry front, revenue visibility for Industry has been increased because initially there were annual contracts by Indian railways, but now IR is coming with two-three years contracts. This move will help Industry and JWL to plan a better roadmap ahead.
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