The shares of the leading railway rolling stock manufacturer gained up to 4 percent after the company began the export of traction converters with its first shipment to Italy.
With a market capitalization of Rs 22,106.70 crore, the shares of Titagarh Rail Systems Ltd were trading at Rs 1,648.05 per share, increasing around 3.79 percent as compared to the previous closing price of Rs 1,587.85 apiece.
Reason for rise:-
According to the company filing, Titagarh Rail Systems Ltd has commenced the export of traction converters, under which the first batch of 8 converters was shipped to Titagarh Firema S.p.A (Titagarh Firema), Italy on July 19, 2024. The export is part of a EUR 7.18 million (Rs 65 Crore Approx.) order received by TRSL from Titagarh Firema and the rollout of the first batch of traction converters from the Passenger Rolling Stock Facility of Titagarh, India.
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Moreover, Titagarh Firema received an order from Italy to design, manufacture, and supply 38 trainsets for a total value of approximately EUR 276 Million, with a design speed of 100 Kmph.
Financial Analysis:-
Looking forward to the company’s financial, Titagrah Rail System Ltd.’s revenue magnified by 8 percent from Rs 974 Crore in Q4FY23 to 1,052 Crore in Q4FY24. During the same period, net profits zoomed by 64 percent from Rs 48 crore to Rs 79 crore.
Revenue split and Manufacturing facilities:-
The company’s revenue from Freight Rolling Stock increased from 81 percent in FY23 to 63 percent FY22 and revenue from Passenger Rolling Stock decreased from 19 percent in FY23 to 34 percent in FY22.
The company’s passenger rolling stock facility currently has a manufacturing capacity of 25 converters per month, which it plans to increase to 50 converters per month, including Mainline Electric Multiple Unit (MEMU) and Electric Multiple Unit (EMU) converters.
Order Book:-
As of May 2024, the company had a standalone order book of 28,076 crores. 46% of the order book consisted of freight rolling stocks and 54% of it came from passenger rolling stocks. On a consolidated basis, the order book stood at 14,750 crores.
Company snapshot:-
Titagarh Rail Systems Limited offers electric propulsion equipment, such as traction motors and vehicle control systems. It also develops and builds wagons, such as container flats and grain hoppers.
Written by:- Abhishek Singh
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