Ladies and gentlemen, good day and welcome to Jupiter Wagons Q2 and H1 FY25 earnings conference call hosted by Systematix Institutional Equities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please press star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sudeep Anand, Systematix Institutional Equities. Thank you, and over to you, Mr. Anand.
Thank you, and good evening, everyone. Thanks for joining us today for Q2 and H1 FY25 earnings call of Jupiter Wagons. On behalf of Systematix, I would like to thank the management for giving us the opportunity to host this call. Today we have with us Mr. Vivek Lohia, Managing Director, and Mr. Sanjiv Keshri, CFO. Now I'll hand over the call to the management for their opening remarks, and after that, we can open it up for Q&A. Thanks, and over to you, sir.
Thank you, Sudeep, for the introduction. Good evening, everyone. Thank you for taking the time to join this earnings call. I trust you've had a chance to review the materials that we shared on Friday. Jupiter Wagons Limited continues to make progress in strengthening its leadership position, guided by innovation, strategic expansion, and a steadfast commitment to enhancing value for all our stakeholders. This quarter has been marked by some meaningful achievements that affirm our vision of growth and diversification across our businesses. On a consolidated basis for Q2 FY25, our revenue from operations reached INR 1,904,000, reflecting a year-on-year growth of 14.8%. EBITDA for Q2 FY25 stood at INR 13,945,000, marking a 15.5% increase year-on-year, with an EBITDA margin of 13.8%. Our profit after tax, or PAT, reached INR 8,936,000, reflecting an 8.9% increase year-on-year, with a PAT margin of 8.8%.
Revenue from operations for H1 FY25 came in at INR 188,890,000, which marks a year-on-year increase of 15.7%. EBITDA for the first half of FY25 reached INR 27,613,000, a significant increase of 27% compared to the same period last year. This has resulted in an improved EBITDA margin of 14.8%, up from 13.3% in H1 FY24. Our profit after tax, or PAT, stood at INR 18,125,000, marking an impressive 25% year-on-year increase. Our PAT margin also improved to 9.5%. As of September 30, 2024, our order book stands robust at INR 664,336. In line with Jupiter Wagons' strategic roadmap, we have taken several steps during the quarter that will not only broaden our offerings but also position us at the forefront of some of the more exciting growth vectors within the mobility landscape. Allow me to take you through some of the key developments.
Firstly, through our wholly-owned subsidiary, Jupiter Electric Mobility, we completed the acquisition of Log9's advanced battery assets, which specializes in cutting-edge battery technologies tailored for electric trucks and railway battery solutions. This acquisition is beyond expansion of our portfolio. It means ownership of the underlying technology, which serves to strengthen our offerings. We first partnered with Log9 in 2022 to increase their technology for our electric LCVs offering, which unveiled at the Auto Expo in January 2023. Thereafter, JEM and Log9 have already piloted battery products with Indian Railways, recently winning a Vande Bharat order in partnership with Siemens. This acquisition includes Log9's engineering team and a state-of-the-art production facility in Bangalore, positioning JEM to produce batteries in-house, especially to strengthen JEM's role in India's electric mobility landscape and adds crucial battery solutions to offerings aimed at the Indian railway segment too.
In addition, our growth expertise in battery energy storage systems, BESS, has unlocked new market opportunities both within and across international borders. Demand is growing rapidly for these storage solutions, particularly in storage energy applications, where they play a crucial role in managing power storage and distribution, and in data centers, where reliable backup power is essential. We have strategically positioned ourselves to meet this demand by continually investing in BESS capabilities, allowing us to offer advanced, sustainable energy storage solutions to our clients and support India's clean energy goals. Our commitment to rail infrastructure, a sector foundational to our heritage, remains steadfast. To reflect our enhanced focus on domestic production, we have rebranded Bonatrans India Private Limited as Jupiter Tatravagonka Railwheel Factory Private Limited. This rebranding marks a significant milestone, aligning with our ambition to become a leader in India's railwheel manufacturing industry.
We will invest a substantial INR 250,000,000 to establish a new state-of-the-art facility in Odisha, which will expand our annual capacity from 20,000 to a projected 100,000 forged wheel sets. This expansion not only supports India's ambitious rail infrastructure projects but also strengthens our ability to supply quality domestically produced rail components, reducing the reliance on imports. We are making strategic investments in developing new foundry to support our wagon manufacturing business. The demand for freight wagons is increasing, and our foundry will boost our production capacity, ensuring we can meet the market needs. Importantly, this will also help us to scale up non-wagon segments, which include safety systems, track components, electric commercial vehicles, and high-speed brake systems. These complementary segments are on track to become a core part of our business, and we anticipate that non-wagon revenue will contribute approximately 50% of our revenue within the next four years.
This balanced, diversified approach is a testament to our strategic vision for sustainable and profitable growth. Thank you for your unwavering support as we build a stronger, more sustainable Jupiter Wagons for the future. Now we can open the floor for Q&A.
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question comes from the line of Garvit Goyal with Nvest Analytics Advisory LLP . Please go ahead.
Hello. Am I audible?
Yeah, good evening, Mr. Goyal. Please go ahead.
Sir, can you clarify the number of wagons sold during the first half of FY25? Is the company on track to meet the annual target of selling over 10,000 wagons, or has the target been impacted?
Yes. So in the first two quarters, we produced roughly about close to 4,100 wagons, and we are very confident of achieving a target. We have given a target of about 10,000 wagons. So we are very confident that we will achieve a number which is close to the 10,000 which we have targeted.
And so further, considering one of our peers like Texmaco, they had some lower wagon sales than our company in FY24. But if I'm looking at H1 number, they sold almost 5,300 wagons. So is there any indication like we are losing on our market share to them?
Not really. Texmaco recently acquired Jindal Rail. So that number which you are seeing is an addition of the Jindal Rail numbers on the Texmaco numbers. And it is basically two quarter numbers which they have added together. So as such, there is no major impact. And on the contrary, if you look at the private market, we are gaining strength every quarter. So I think we are by far the leaders in that segment and continue to maintain our market share. And whatever projections which we have made, we are very confident that we will achieve the same.
Secondly, could you also provide an update on the commercial vehicle segment? Like earlier, we were saying production will begin in Q3, and we will be able to sell 500 vehicles this year. Is that timeline aligned?
Yeah. As mentioned earlier, we had mentioned Q3 end. So we are very confident that we will be launching the vehicle by Q3 end. If there's a slippage, it will be maximum by a week or two weeks. Beyond that, we don't expect any kind of slippage. And we are again very confident that in the calendar year, we will be selling numbers will be above 1,000 vehicles.
All right. That means it will be not 500, it will be 1,000 vehicles, right?
Yeah, for the calendar year.
For the calendar year. Okay, fine. Got it. And so lastly, considering that the company mentioned to achieve the revenue target in line with 4,500 to 5,000 CR in earlier phone calls, so is that number intact considering the kind of number we reported in H1, like it is close to 1,800 CR revenue in H1? So are we in line to achieve somewhere between 4,500 to 5,000 CR this full year?
Honestly, in terms of visibility. We are very clear in terms of the number of wagons, and we are confident that whatever projections which we have given in terms of wagon sales and for the other products, we'll achieve our target. Now, how much does it convert to revenues? Honestly, I cannot give you a concrete number right now. But whatever we have projected, the company will be achieving its targets.
Can we say like H2 is going to be way better than H1?
Yeah, definitely. And that is the trend because H2, not only in the railway, across all industries, if you look, H2, because of less destruction due to monsoons, and then H1 levels also elections. So none of those challenges will be in H2. So definitely, H2, we expect numbers to be much, much stronger.
Sir, I'll join back in the queue . Thank you very much.
Thank you. Next question comes from the line of Kartik Patel , an individual investor. Please go ahead.
Hello.
Yeah.
Please go ahead.
Congratulations and well done, sir, for giving us a very good number this quarter as well. Sir, a couple of two questions I got to ask you. Sir, this time company shows little bit extra expense. So can you please focus on little bit on that? What type of company got expense through what you call through the Log9 acquisition or something like that, sir? And how much products and we can start from this quarter, Q3, for the wheel business?
Yeah. So good evening, Mr. Patel. Wheel business, as I've told, we are already the business is up and running. What we are now setting up is the complete forged line for full backward integration and also increasing capacity. That is a three-year project. But however, we continue to expand the existing business. So if you see our results every quarter on the wheel business, the numbers are growing, and we are very confident about that business. And you will see definitely quarter-on-quarter increase in the wheel production as our capacities go up. Our order books there are very robust, not only from Jupiter Wagons but from Indian Railways also and other metro pairs. With regard to the expenses, honestly, right now, because first of all, I did not understand in terms of what expenses are you talking about. So very difficult for me to elaborate on the same.
But per se, we don't see any extraordinary increase in any kind of expenses. But maybe you can write to us substantiating what you're exactly looking for, and then we'll reply to you.
Thank you. Mr. Patel, please reserve the queue for more questions. Next question comes from the line of Parvez Qazi, Nuvama Group. Please go ahead.
Hi, good afternoon, and thanks for taking my question. So a couple of questions from my side. First, with regards to the brake business, what would be the current order book of that business, and how do we see the prospects of that business going ahead, especially with regards to Stone India?
Thank you. Thank you, Mr. Qazi. With regard to Stone India, we expect our pantograph has now been approved by Indian Railways, and we expect to deliver the prototypes by early next year. Besides that, our freight brake systems in Stone India, we are expecting the licenses to be renewed before the end of this year. Next year, we expect very strong numbers starting because, as you're aware, we have a huge captive order, plus the demand from railways is also very strong for the brake systems. We are looking to supply at least anything between 8,000-10,000 brake systems in the next financial year. But again, it depends on how fast we can ramp up production. That is the target with which we are going ahead. Again, it's subject to how fast we can ramp up production.
I think once the approval comes, we'll be able to give you, by beginning of next year, a much more concrete numbers in terms of the production capacities. Again, in our Kovis and DAKO JVs, we have very strong order books. In Kovis, we have order books of brake discs of more than right now, more than 16,000 brake discs which we have to supply to Indian Railways. And we are constantly ramping up production. Also, we have a good order book for supply of axle boxes to the European market there. And on the DAKO side, we had an order for about 350 brake systems from out of which we expect to complete that order in the current financial year. And next financial year also, we are placed very strongly in the tenders.
So we expect orders of 500-plus brake systems for the next financial year. This is for the LHB passengers.
Sure. My second question is with regards to the wagon business. So while obviously the production is ramped up, but overall for Indian Railways, we have not really seen too many orders in H1. So based on our discussion with railways, how does the pipeline look? Do we expect substantial ordering in H2, or do you think ordering will come only in FY26? And the second part of the question is also, if you could give some details on how the wagon ordering from the private sector is. Thank you.
So see, as far as we are aware, Railways has a very strong order pipeline for wagons. Now, again, we don't know whether those tenders will come in this quarter or the next in H1 of next financial year. Again, we are not privy to that. But definitely, Railways, as whatever we can understand, there is a very, very strong demand from Indian Railways, and they are proposing to order a substantial number of wagons. As I've told you, our private order book remains very strong. I think last week itself, we cannot disclose the customer as of now, but last week itself, we have received an order for about 10 rakes from a single customer. So I don't see, I think compared to last year, our private order books for private rakes or orders have increased from last financial year if you look at the numbers.
Honestly, the exact numbers, I'm not privy to it right now, so it will be very difficult for me to comment.
Sure. Thanks and all the best, sir.
Thank you. Next question comes from the line of Akash with Dalal & Broacha. Please go ahead.
Yeah. Thanks for giving me the opportunity. So my question was mainly of the order book. On the last six, seven quarters, we have seen that it's in the range of 6,000-7,000 outsourced. So if you could guide us a bit on the pipeline right from wagons to brakes to wheel sets, how it can pan out, and where do you see the order book going in the, let's say, next two years, let's say FY 2026, 2027 as well?
We are very comfortable with the current order book because this right now order book is basically, if you look at it forward going, it's about 18 months of execution. So again, we are not looking to pile up substantially higher wagon order books beyond that because then that will be subject to a lot of LDs and things. So we expect the private, whatever our suppliers have told you, we are getting the replacement orders on the private side. Railway side, we expect the substantial tender to come up very shortly in the next four to five months. And I think that is as per our expectations because I think ours and the industry's expectation as we don't want because there are now substantial orders from Indian Railways also which we are now delivering.
From our side also, if any order comes, any tender which comes late this year or beginning next year, that will be, I think, more welcome by the industry. We don't see a challenge. As I've told you, for FY 25, our order books are completely full, and FY 26 also, honestly, we don't see any challenge as we are very confident on railway coming out with the substantial order book. On the brake side, as I've clearly mentioned, for Stone India, we are expecting approvals in the next one or two months for the freight brake systems. It is, I think, in terms of order books, not a challenge. There is substantial demand both from Indian Railways as well as we ourselves are looking at producing more than 10,000 wagons in FY 25. We don't see a challenge in terms of order books.
Basically, now we are focusing on ramping up productions there. Similarly, as I've already mentioned in the DAKO JV itself, our focus is right now, again, to strengthen the supply systems. Again, railway has projected a demand for close to 6,000 LHB coaches in all the three of the production facilities they'll be manufacturing in FY 26 and FY 25. So we don't see any challenges in terms of demand there. It is a question of how fast we can ramp up our supply chains. So I think all the three JVs combined in FY 25, we are looking at the turnover of, as I've already mentioned earlier, our numbers will be about anything between INR 300-INR 500 crores of revenues we expect from all the three JVs.
That's for next year, sir?
Yeah, in FY 25, I'm talking about.
I'm sorry, in FY 25, we'll be doing some [road testing to pilot it in].
FY 26, these numbers will be.
Oh, okay. And sir, is it safe to say that from your, I mean, like you said, the order pipeline on all components and wagons as well remains strong? So from here, for the next two years, can we grow comfortably at a 20%-25% figure?
Yeah. Yeah, definitely. Our target next year, this year, as I've told you, we are focusing on supplying close to 10,000 cars, and next year, we are looking to ramp it up to about 12,000 cars. So yeah, I don't think, and our wheel businesses, we are increasing capacity. So by FY 25 end, our capacity will be close to about 25,000 wheel sets. When we took over the company, it was close to about 10,000 wheel sets. So from there, we are ramping it up to 25,000. So yeah, I don't see a challenge in delivering on the growth numbers.
Got it. So just one last question on: Is Stone India approval taking so much time because we were expecting it somewhere in the start of this year, right, in April?
We were not expecting in the start of we have already always mentioned that it will be by end of FY 2025. We have clearly mentioned because we have to understand that we took over a company from NCLT. We had to, the complete infrastructure had to be revamped. We had to order all the machineries afresh and then apply for the licenses.
Got it, sir. Thank you. I'll join back in the queue.
Yeah. Thank you.
Thank you. Next question comes from the line of Gagan Deep with About Nvest Analytics Advisory LLP . Please go ahead.
Hi. Thanks for giving the opportunity. So sir, my question is, withdrew by 15% offline in H1. I want to understand from you how this full year looks like in terms of revenue growth.
Yes. Sorry, I could not follow your question. Can you again repeat it? I think your voice got muffled a little.
We grew by 15% overall in H1. I want to understand from you how this full year looks like in terms of revenue growth.
As I've told you, we are expecting to do wagon numbers of close to 10,000 this year. Last year, our numbers were 8,000, and plus, this year, again, the revenues will come from the wheel business, which was not there last year. The brake business in both the DAKO and the Kovis JV, we have started delivering, so this year, the overall revenue numbers will definitely be higher than last year's numbers.
Okay, sir. Thanks for the question.
Thank you. Next question comes from the line of Anushka Roy with Trade Brains. Please go ahead.
Hello. Thank you for this opportunity, sir. So my question is that in the presentation I read, there are companies expecting a strong growth in the non-wagon business. So I just want to understand what are the plans of the company to scale and integrate these segments? And secondly, what kind of revenue growth can we see from these segments?
Yeah, thank you. So the Log9 acquisition again was one of the strategic investments for the same purpose. Definitely, we are very, very bullish on the auto segment. Post-launch of our commercial EV, I think this year, as I've told you, we expect very strong numbers there. We are launching with the one-ton payload truck with the 2.5-ton GVW. And we expect to launch two other trucks in higher payload, two-ton and three-ton payload within FY 2026. So I think that business is going to be very strong for us. And the battery business was a very, very key strategic acquisition because, as you know, in any electric car, battery makes up close to about 50% of the cost of the vehicle. So from that end and the technology end, that was a key acquisition. Again, our container business continues to grow very strongly.
We have started even exports to North America. The railway and the battery segment, as I've told you, we've got orders for Vande Bharat. We expect further order books from Vande Bharat this year itself. Beyond that, we are the only company who have undertaken trials on the passenger coaches. So there, we expect order books to come in FY 26. Our big business, I have elaborated in terms of the kind of performance which we are looking in FY 26. We expect numbers from anything between INR 300-500 crores of revenues from that business. Our wheel business, as I've told you, from 10,000 wheel sets will be ramping up to close to 25,000 wheel sets in this financial year. So the entire impact of that capacity will be visible in FY 26.
I think by FY 27, our complete wheel forging line, we can start production, especially in the axle box line, which will be followed by the wheel set. So I think, again, those revenues will also get added up, plus exports are going to start to the European market. So definitely, the growth map is very strong. By FY 27 end, as we have clearly mentioned, that we expect our non-wagon revenues to be close to as much as about 50% of our total revenue growth.
Also, one more question I had. Could you just give us some kind of guidance in terms of, I mean, revenue has already been mentioned, but what kind of numbers are we looking at in H2, FY 25, or 26? And if there's any guidance on the CapEx, whether?
The CapEx guidance is, I think, very clear. We have already mentioned that going forward, I think the majority, the substantial CapEx is going to happen on the wheel capacity. We have mentioned that that will be an INR 2,500 crore CapEx outlay including GST. So I think beyond that, we don't expect any substantial CapEx in any other businesses. Most of the other CapEx going forward is going to be the replacement CapEx because on the foundry side, we have already invested in the incremental capacity, which will get commissioned by end of this year. So yeah, beyond that, we are not looking at any kind of substantial CapEx from the company.
And so what about the EBITDA targets, if you could give some kind of guidance on that, what you're expecting?
Again, very difficult for us to give forward numbers, but what I can assure you is that EBITDA margins will continue to remain strong, and as revenues come from non-wagon businesses, you will see some improvement in those margins, but again, we will not be in a position to substantiate on this yet.
Okay. Thank you, sir. All the best.
Thank you. Next question comes from the line of Khush Nahar with Electrum Portfolio Managers. Please go ahead.
Hello. Thank you for the opportunity, sir. Please go question. Sir, what was the amount that we paid for the acquisition of Log9 assets, and what kind of revenue potential do we see from that segment?
We are paid about close to INR 40 crores for the acquisition of that asset. In terms of revenue potential, honestly, a lot of it will be captive as it will basically be used for the battery systems for our trucks. So if we had not bought Log9, it would have been bought out for us. And again, the margins would have gone to the industry now, which is captured in-house. As I've mentioned, that battery system is close to about 50% of the value of the trucks. And it's a very, very critical component, which is the core technology for any electric vehicle. So it was a very, very critical acquisition for us. Beyond that, definitely, this acquisition helps us in the railway business, where we see a huge potential.
Railway buys, I think, close to about anything between INR 1,000-1,500 crores of batteries every year, which is the non-lithium-ion batteries. We expect in the next four to six years that this will get transitioned to lithium-ion battery packs. The market is quite substantial. As I mentioned, for Vande Bharat, we already have a very strong order book from Siemens, and we expect that order book to further strengthen. We are also focusing on other businesses with Indian Railways, where we expect good order books on the battery side. Again, finally, the containers remain a strong segment for us. Now we are focusing on integrated containers, battery energy storage solution containers. I think there also, this acquisition will play a crucial part.
Okay. Thanks. So for the CapEx that you just mentioned on the wheel capacity, so going ahead, do we plan on taking more debt, or how will that be funded?
No, honestly, we don't need to take. So we have already mentioned the debts which we'll be taking for that business. I think it remains the same. We don't expect any incremental debt beyond what we have mentioned earlier.
Okay. Thank you.
Thank you. Next question comes from the line of Om Prakash with Infosys. Please go ahead.
Hi sir. Thank you for giving me the opportunity. Recently, there has been maritime infrastructure news regarding the 15 containers. Are you expecting any kind of container orders from Indian maritime portfolio?
Can you please repeat your question regarding? I understood you're asking regarding container orders, but I could not understand the first part of it.
Regarding the Indian government, I see they are doubling the capacity of 15 containers. Did you receive any orders from the Indian government?
As a company, we are not focused on shipping containers because that's much lower on the value chain. We are focused on mainly battery energy and data center containers, which are very, very specialized containers and which require a lot of engineering, design, and certifications. So marine is the area which we are not present in that segment.
My second question, sir, 1,000 EV vehicles you are selling by this calendar year, it is still this December, right? Whether you are selling these vehicles in domestic or exporting to international market?
It will be mainly domestic, and it is FY 2026 when we have mentioned the 1,000 vehicles. It will be mainly domestic.
Okay.
Thank you. Next question comes from the line of Rajesh Vora with Jainmay Venture. Please go ahead.
Good evening, Vivekji. What % of revenue in the first half is from wheels business, directly in next year?
Could you again please repeat your question? Sorry for the change.
Sure. Vivekji, from the wheels segment, what are the revenue percentage in the first half of this financial year, and what are the expectations for next year, roughly?
The first half, I think we did revenues of about INR 160 crores. Again, as I've told you, we are adding capacity. And so in the second half, definitely these numbers will go up. And this year, we expect to do about close to anything between 300 to 400 crores of revenue. And next financial year, that numbers are going to go up to about close to INR 700 crores.
Wonderful, and I think in the beginning, in the opening remarks, you mentioned that four years out, you expect half of the revenue from wheels business. Is that correct, sir, as I understood?
It was non-wagon. Non-wagon revenue we are talking about. And this number we are talking about because now we are doing the CapEx for the backward integration and taking the capacity to about 1 lakh wheel sets. So this is the whole capacity. Well, it's about a three-year journey till the time we can set up that complete capacity. So I think those numbers you will start seeing from end of FY 2027.
Okay. Got it. And at what point, what number of EV vehicles that you have to sell to break even at Jupiter Mobility?
Again, these numbers, honestly, we are not in a position, and these are sensitive information, which at this moment, we cannot reveal in terms of what our strategy is.
Sure. No, I understand. I understand. Is there a way to see that? Can it be profitable in three years? Is that possible to comment?
See, it's not only EVs. There we are also focusing on batteries and other businesses. I think if you take all the businesses combined, we expect to become profitable very soon in that business.
Thank you. Mr. Vora, please rejoin the queue for more questions. Next question comes from the line of Akash with Dalal and Broacha. Please go ahead.
Yeah. Thanks. So sir, we would just like to take your view on the recent acquisition in the industry between Texmaco and Jindal. Would you perceive any impact from that on the industry and on our business as a whole?
No, I don't see any impact because Jindal was already in wagon manufacturing. It's not a new business which has come up. So I don't see any major impact in terms just that instead of two separate companies, the numbers just got consolidated. Beyond that, honestly, we don't see any kind of and Jindal was already competing with us for the, I think, after Jupiter, they were one of the strong contenders on the private side. But definitely, Jupiter is we don't see, honestly, we don't see much of an impact from this acquisition.
I understand. So we won't be losing any market share. Sir, if you could broadly highlight what kind of a yearly CapEx we are planning. So 2,500 is something as a whole that we are planning for the Odisha plant. I don't know, yearly businesses have to bifurcate the CapEx. How will it go from FY 25 till FY 27?
Again, honestly, very difficult question to answer. It depends on how the project is going to how fast the project progresses. So it depends. We have payments on milestones. So I think it's too early right now. Maybe once the work on the ground starts, maybe by middle of next year or third quarter of next year, I'll be in a better position to answer that question for you.
Got it. So any ballpark projections for this year at least? How much CapEx will be doing this year?
This year will be about all businesses put together will be about INR 500 crores.
500 crores. Okay. Okay. Got it. And sir, you were speaking about on the exports front. So exports to Europe, mainly wagons or what is it? Which kind of component?
No, we are talking about big equipment which we have already started exports to Europe. Containers we are exporting to the North American market, and once our wheel facility comes up in Odisha, as we have already mentioned, that a substantial capacity will be exported to Europe, mainly to our partners there, Tatravagonka. They are going to be the major consumers of all those wheel sets as they themselves buy close to about 60,000 wheel sets annually.
Thank you. Mr. Akash, please rejoin the queue for more questions. Next question comes from the line of Kartikeya Kumar Pandey with Ashika Stock Broking. Please go ahead.
Hello.
Yes, please.
Yeah. So sir, just a small question. You mentioned about your mobility business to break even. So when was that? I did not get that answer.
Mobility business? Mobility business. You are asking about the mobility business. Can you speak some loudly, please? Can you please repeat your question? We could not get your question.
Just a sec. Yeah. Hello. So, sir, you mentioned that your electric mobility business, which has just acquired Log9. So when is it going to break even? You mentioned some timeline.
No, I did not give any timelines. What I said that we expect the question was that will it break even in three years, to which I answered that we expect the break even to be much earlier than that. As it's not only vehicles, there are a lot of other businesses in that, including BESS data center, then our vehicle business, plus the battery supplies to Indian Railways. So the question was that whether we will break even in three years. The answer was that we expect the break even to be much earlier. But again, we cannot substantiate right now in terms of the timelines.
Okay. Thank you. Thank you.
Thank you. Ladies and gentlemen, due to time constraints, we have reached the end of question and answer session. I would now like to hand the conference over to the management for closing comments.
Yeah. Thank you. In summary, Jupiter Wagons is building a legacy of resilience and forward-thinking by committing to sustainable practices and continuously adapting to market trends. We are positioning ourselves as a leader not only in railway manufacturing but also in electric mobility and energy solutions. As we forge ahead, we are committed to delivering excellence for our stakeholders, our clients, and the community we serve, creating a positive lasting impact that will propel Jupiter Wagons into a new era of growth and leadership in our industry. I would like to thank all the participants. I offer my apologies for any further questions that you had. But if you mail us your questions, I assure you that we will revert back to you with all our answers. Thank you again.
Thank you. On behalf of Systematix Institutional Equities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.