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Titagarh Rail Systems Achieves Remarkable Turnaround, Reports ₹61.78 Crore Net Profit in Q1

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Titagarh Rail Systems Limited, formerly known as Titagarh Wagons Limited, showcased an impressive financial performance during the June quarter, reporting a net profit of ₹61.78 crore. This significant turnaround comes as a stark contrast to the corresponding quarter of the previous fiscal year when the company reported a net loss of ₹604,000.

The rail wagon manufacturer’s net revenue witnessed an impressive surge of 107.5%, reaching ₹914.65 crore in the quarter. Additionally, Titagarh Rail Systems reported earnings before interest, tax, depreciation, and amortization (Ebitda) of ₹118.78 crore, with an Ebitda margin of 13.04%.

The company’s two operating segments, Freight Rail Systems and Passenger Rail Systems, reported revenues of ₹74,607.94 lakh and ₹164.68 crore, respectively, over the same period last fiscal year.

Under the leadership of Umesh Chowdhary, Titagarh Rail Systems has secured a substantial order book worth ₹27,000 crore as of March 2023. The company aims to invest around ₹650 crore over the next two-three years to strengthen its manufacturing facilities.

In a significant development, Titagarh Rail Systems, in collaboration with BHEL Ltd, inked a contract to supply 80 Vande Bharat trains to Indian Railways and undertake their maintenance for 35 years starting in 2025. The company’s Managing Director and CEO, Umesh Chowdhary, affirmed that they will commence supplying these wagons to Indian Railways from June 2025 and complete all 80 train deliveries by 2029.

Moreover, the company is engaged in a joint venture with Ramakrishna Forgings Limited, operating as Ramakrishna Titagrah Rail Wheels Limited (RTRWL), to establish one of Asia’s largest train wheel manufacturing plants in India. The joint venture plans to manufacture 200,000 wheels per annum, with 80,000 wheels dedicated to supplying Indian Railways under a contract, while the remaining 120,000 will meet internal requirements.

As a forward-looking enterprise in a tender-oriented business, Titagarh Rail Systems remains committed to exploring and seizing new business opportunities. The company’s strategic focus on innovation and customer-centric solutions positions it for continued growth and success within the dynamic rail industry.

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Abel Mathew

Marketing Enthusiast | Product Marketing at smallcase | Cinephile ----The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Smallcase Technologies Private Limited does not uphold nor promote any of the views / opinions.

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