The shares of this freight wagon manufacturing firm fell around 8 percent to an intraday low of Rs 1,548.95 apiece from its previous close after the profit after tax generated by the firm fell by 15.1 percent as of Q1FY25.
Share price movement: With the market capitalization of Titagarh Rail Systems Limited, the stocks of this firm have generated a multi-bagger return of 146 percent over the past year and a return of 47 percent over the past 6 months. The firm’s stock dropped around 5 percent, trading at Rs 1,605 levels at 12:52 PM during Wednesday’s market session.
Results: Reviewing the latest Q1FY25 financials published by Titagarh Rail Systems Limited and comparing it from the previous corresponding quarter to the current quarter, the revenue from operations fell by 0.8 percent from Rs 910.8 crores in Q1FY24 to Rs 903.1 crores in Q1FY25. Also for the same period, the profits generated by the firm grew by 8.4 percent from Rs 61.79 crores to Rs 67.01 crores.
Additionally, comparing the financials of the firm from the previous quarter to the current quarter the revenue from operations fell by 14.2 percent from Rs 1,052.4 crores in Q4FY24 to Rs 903.1 crores in Q1FY25. For the same period, the profits fell by 15.1 percent from Rs 78.95 crores to Rs 67.01 crores.
The segment revenue of freight rail systems fell by 17 percent from Rs 1,016.87 crores in Q4FY24 to Rs 842.19 crores in Q1FY25.
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Ratios: The trailing 12 months ROE and ROCE of Titagarh Rail Systems Limited stood at 13 percent and 18 percent respectively. Also for the same period, the debt-to-equity ratio stood at 0.07 times.
EBITDA and EPS: The EBITDA of Titagarh Rail Systems Limited surged by 71 percent from Rs 264.4 crores in FY23 to Rs 451.9 crores in FY24. Also for the same period, the firm’s earnings per share jumped by 170 percent from Rs 8.64 to Rs 23.3
FY25 Business updates: Titagarh Rail Systems Limited (TRSL), a leading train manufacturer in India, has begun producing trainsets for the Bangalore Metro Rail Corporation Limited’s (BMRCL) Phase 2 Yellow Line. TRSL is tasked with manufacturing 34 of the 36 trainsets needed for this project at their state-of-the-art facility. It has also opened a new engineering center in Bengaluru, marking a step forward in its innovation and design efforts.
Additionally, The Company has started exporting traction converters, with the first batch of 8 units shipped to Titagarh Firema S.p.A in Italy on July 19, 2024. This export is part of a EUR 7.18 million (approximately ₹65 Crore) order from Titagarh Firema.
Market share and Manufacturing facilities: Titagarh Limited has a market share of 25 to 30 percent in Wagaon manufacturing with a total of 4 manufacturing units in the country.
Orderbook and recent order: The order book size of Titagarh Rail Systems Limited as of Q1FY25 stood at Rs 14,117 crores. Recently the firm has received an order worth Rs 170 crores from the Ministry of Defence for the delivery of 250 specialized wagons over the next 36 months. As of June 2024, the order book of Titagarh Limited consists of orders for 20,300 wagons and 1592 metro and Vande Bharat coaches.
Shareholding Pattern: As of June 2024, The promoters of Titagarh Rail Systems Limited held 40.46 percent of the stakes while the Public held 25.83 percent. Additionally, the FII, The DII, and the government held 19.56 percent, 14.13 percent, and 0.01 percent of the stakes of Titagarh Limited respectively.
About the Company: Incorporated in the year 1997, Titagarh Rail Systems Limited is mainly engaged in the manufacturing and selling of Freight Wagons, Passenger Coaches, Metro Trains, Train Electricals, Steel Castings, Specialised Equipments & Bridges, Ships, etc. The company caters to both domestic and export markets.
Written By Zahal
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