Shares of this freight wagons manufacturing company surged upto 7 percent in Thursday’s trading session after reporting an increase in net profits by 64 percent YoY. The shares have delivered a multibagger return of 150 percent to its shareholders in one year.
With a market capitalization of Rs. 15,877 crores, the shares of Titagarh Rail Systems Ltd started Thursday’s trading session on a higher note at Rs. 1,145.10 compared to its previous close of Rs. 1,112.55. During the trading session, the share hit a high of Rs. 1,217, gaining around 7 percent and are currently trading at Rs. 1,173 apiece.
Such a positive movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased by 10.2 percent from Rs. 954.67 crores during the December quarter to Rs. 1,052.41 crores in the March quarter. In addition, the net profits zoomed by 6 percent from Rs. 74.82 crores to Rs. 78.94 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 8 percent from Rs. 974.21 crores during Q4FY23 to Rs. 1,052.41 crores in Q4FY24. On the other hand, the net profits magnified by 64 percent from Rs. 48.23 crores to Rs. 78.94 crores during the same timeframe.
At the operating level, EBITDA rose 25.7 percent to Rs. 120 crores in the fourth quarter of this fiscal over Rs. 95.5 crore in the corresponding period in the previous fiscal. Moreover, the EBITDA margin increased from 9.8 percent to 11.4 percent on a YoY basis.
Additionally, the company’s board has recommended a dividend of 40 percent (i.e. Rs.0.80) per equity share of Rs. 2 each for the financial year 2023-24. The dividend as recommended by the Board is subject to approval of the shareholders at the ensuing Annual General Meeting of the company.
As of December 2023, the railway company’s total order book stood at Rs. 27,466 crores (including a proportionate share of the order book of Rs 13,326 cores to be executed in the JV). Furthermore, the total unexecuted wagon orders stood at 19,259 wagons with a mix of Indian railway and private wagons.
As per the latest data, the company aims to significantly expand its production capacity to 1,000 wagons per month by the end of this financial year, up from 600-700 wagons per month.
On the other hand, Titagarh Rail Systems also aims to strengthen its engineering capabilities in India to support the growing Indian passenger rail market leveraging low-cost capabilities and synergies from Firema.
The strategic alliance with Sidwal Refrigeration Pvt Ltd (a WOS of Amber Enterprises India Limited), and a strategic partnership with Amber Enterprises India, to set up a new facility in India to manufacture critical railway components and subsystems for Metro Coaches /Passenger Rolling Stock.
Headquartered in Kolkata, Titagarh Rail Systems was incorporated in 1997. The company mainly manufactures and sells Freight Wagons, Passenger Coaches, Metro Trains, Train Electricals, Steel Castings, Specialised equipment and Bridges, Ships, etc. The company caters to both domestic and export markets.
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