Titagarh Rail Systems (TITAGARH) Q4 10/11 earnings summary

Executive summary

• FY2010-11 performance improved despite the Indian Railways wagon order arriving late in Q2 and private-sector wagon demand weakening after withdrawal of the Wagon Investment Scheme; EBITDA, PBT and PAT rose 20.11%, 24.05% and 24.51% YoY.

• Growth initiatives spanned EMUs, heavy earth-moving equipment, special projects and international operations; wagons remained the main earnings contributor.

Financial highlights

• Standalone net sales were Rs. 66,670.78 lakh vs Rs. 55,422.32 lakh in FY10; PBT was Rs. 12,261.15 lakh vs Rs. 9,883.72 lakh, and PAT was Rs. 8,139.42 lakh vs Rs. 6,537.05 lakh.

• Consolidated net sales were Rs. 72,441.17 lakh vs Rs. 55,422.32 lakh; consolidated PAT was Rs. 7,129.47 lakh vs Rs. 6,018.24 lakh.

• Standalone operating cash flow was Rs. 6,428.46 lakh; cash and cash equivalents closed at Rs. 125.11 lakh, excluding fixed deposits with maturity over three months.

Outlook and guidance

• Railway Budget FY12 planned acquisition of 18,000 wagons, a Rs. 57,630 crore rail outlay and 6.4% higher freight-loading capacity; management expected firm wagon demand.

• All five ordered EMU rakes were delivered; the Uttarpara facility was equipped for larger monthly output and expected a major order in FY12.

• HEMM product broadening to include excavators and cranes of varied capacities was expected to lift divisional performance; repeat NBC Shelter orders were also being pursued.