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

Executive summary

• Revenue grew 12% year-over-year in Q1 FY25, with wagon sales up 13% despite labor absenteeism and elections.

• Maintains net debt negative status and market leadership in freight wagons with ~30% share.

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

• Production for Bangalore Metro commenced, with ramp-up on track; first train dispatch expected in Q2 FY25.

• Exported first traction converters to Europe, marking a significant technological milestone.

Financial highlights

• Q1 FY25 revenue from operations at Rs 903.1 crore, nearly flat year-over-year and down sequentially.

• EBITDA at Rs 101.8 crore, down 4.1% year-over-year; EBITDA margin at 11.3%.

• Profit after tax at Rs 71.3 crore, up 5.5% year-over-year; PAT margin at 7.9%.

• EPS for Q1 FY25 at Rs 5.30 (standalone), Rs 4.98 (consolidated).

• Achieved an average of 700 wagons per month in Q1 FY25, matching last year's average.

Outlook and guidance

• Order backlog of 20,300 wagons and 1,592 Metro/Vande Bharat coaches as of June 2024.

• Targeting steady output of 950-1,000 wagons per month and surpassing last year’s 8,400 wagons.

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

• Capacity being created for 800-850 passenger cars and 12,000 freight wagons annually.

• Positioned for future revenue growth as current design-phase projects transition to deliveries.