Titagarh Rail Systems (TITAGARH) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 12% year-over-year, despite a traditionally slow quarter and disruptions from heat waves and elections in Eastern India.

• Net debt negative position maintained, reflecting strong balance sheet discipline.

• Market leader in freight wagons with 25-30% share and largest wagon manufacturer in India.

• Robust order book of Rs 14,117 crore (standalone) and Rs 13,326 crore (JV share) as of June 2024.

• Credit rating upgraded to 'AA-/Stable' by CRISIL, indicating improved financial strength.

Financial highlights

• Q1 FY25 revenue from operations at Rs 903.1 crore, down 0.8% year-over-year and 14.2% sequentially.

• EBITDA for Q1 FY25 at Rs 101.8 crore, down 4.1% year-over-year and 15.2% sequentially; EBITDA margin at 11.3%.

• Profit after tax for Q1 FY25 at Rs 71.3 crore, up 5.5% year-over-year but down 14.5% sequentially; PAT margin at 7.9%.

• Standalone EPS for Q1 FY25 at Rs 5.30; consolidated EPS at Rs 4.98.

• FY24 revenue grew 38.6% year-over-year to Rs 3,853.3 crore; FY24 PAT up 187% to Rs 296.9 crore.

Outlook and guidance

• Confident of achieving five-digit wagon production, targeting over 10,000 units versus 8,400 last year.

• Order backlog of 20,300 wagons as of June 2024, with a target to stabilize production at 1,000 wagons per month.

• Passenger coach production to ramp from 10-15 cars/month in Q3/Q4 FY25 to 70 cars/month in 3-4 years.

• Strong industry tailwinds from government investments and expansion plans in Indian Railways and metro networks.

• Design and engineering for Surat/Ahmedabad metro and Vande Bharat trains ongoing, with deliveries to start subsequently.