Titagarh Rail Systems (TITAGARH) Q4 12/13 earnings summary

Executive summary

• FY12-13 performance weakened as delayed Indian Railways wagon orders and pending EMU/MEMU designs reduced deliveries; subdued private-sector demand and higher inventory carrying costs added pressure.

• Cost efficiency, productivity and expansion in coaches, castings, HEMM and special projects remained priorities; restructuring plans were deferred after review.

Financial highlights

• Standalone net revenue was Rs 49,935.21 lacs vs Rs 64,432.99 lacs; EBITDA Rs 5,898.95 lacs vs Rs 12,934.88 lacs; profit after tax Rs 2,387.81 lacs vs Rs 7,662.45 lacs.

• Standalone PBT fell to Rs 3,734.28 lacs from Rs 11,482.24 lacs; basic EPS was Rs 11.90 vs Rs 40.72.

• Consolidated net revenue was Rs 78,234.63 lacs vs Rs 89,094.51 lacs; EBITDA Rs 7,300.60 lacs vs Rs 16,348.52 lacs; attributable profit Rs 2,358.15 lacs vs Rs 8,316.72 lacs.

• Consolidated basic EPS was Rs 11.76 vs Rs 44.20; consolidated PBT was Rs 3,626.26 lacs vs Rs 12,430.02 lacs.

Outlook and guidance

• Indian Railways procurement of 13,000 wagons was expected in FY13-14; freight loading capacity was planned to rise 40 MT to 1,047 MT.

• Orders for 12 MEMU and 11 EMU rakes, valued at about Rs 250 crore, awaited customer designs; execution was expected to progress once designs were released.

• Freight corridors and rising preference for rail cargo movement were expected to support wagon demand; diversification and business de-risking remained priorities.