Titagarh Rail Systems (TITAGARH) Q4 14/15 earnings summary

Executive summary

• FY15 standalone net revenue rose 43.9% YoY to Rs. 37,613.73 lacs; PAT increased 162.1% to Rs. 985.71 lacs despite a Rs. 1,710.15-lac onerous-contract charge.

• Consolidated revenue reached Rs. 76,111.66 lacs, while the consolidated net loss was Rs. 982.54 lacs; the audit opinion was qualified on subsidiary claims, deferred tax assets and capitalised development costs.

Financial highlights

• Standalone EBITDA was Rs. 3,391.88 lacs vs. Rs. 654.12 lacs; PBT before exceptional items was Rs. 3,213.84 lacs vs. Rs. 1,503.69 lacs.

• Standalone PBT after the Rs. 1,710.15-lac exceptional loss was Rs. 1,503.69 lacs; tax expense was Rs. 517.98 lacs and PAT Rs. 985.71 lacs.

• Standalone EPS was Rs. 4.91 vs. Rs. 1.87 on the pre-split Rs. 10 face-value basis; operating cash flow rose to Rs. 9,091.68 lacs from Rs. 2,423.34 lacs.

• Consolidated EBITDA was Rs. 5,804.81 lacs vs. Rs. 2,796.00 lacs; consolidated revenue was Rs. 76,111.66 lacs vs. Rs. 62,411.82 lacs.

• Consolidated loss attributable to owners was Rs. 330.57 lacs vs. Rs. 893.26 lacs; consolidated EPS was a loss of Rs. 0.33 vs. Rs. 0.89 after adjusting for the share split.

Outlook and guidance

• FY16 outlook was described as encouraging; an order for 12 MEMU rakes was under execution, with benefits expected during the year.

• July 2015 acquisition of an Italian electric-train and coach business was completed through Titagarh Firema Adler SpA; board-approved investment was up to €25 million.

• An industrial licence for defence products was issued on July 1, 2015; opportunities cited included metro coaches, defence products, custom wagons, exports and marine vessels.