Titagarh Rail Systems Q4 Results Review - Further Re-Rating May Take A Pause; Downgrade To Hold: Systematix

Systematix Research Report

Titagarh Rail Systems Ltd. reported a healthy result in Q4 FY24 led by strong performance from freight rail system division while passenger rail system division continued to disappoint.

Consolidated revenues increased 8% YoY/10.2% QoQ to Rs 10.5 billion led by strong growth in freight rail systems while passenger rail systems revenue declined 79% YoY/65% QoQ during the quarter.

FRS revenue (97% of total revenue) grew 26% YoY/19% QoQ to Rs 10.2 billion. Titagarh Rail Systems recorded the highest-ever production of 1,089 wagons in March 2024 (earlier highest was 1,021 in Dec-23).

Gross margin was flattish YoY/+153 bps QoQ to 23.3%. FRS’s Ebit margin (Including order inflow) declined 31 bps QoQ (+202bps) to 12.6% while PRS’s margin also declined 31 bps QoQ further to 2.1% in Q4 FY24.

The company executed just ~42 metro cars during FY24. However, higher employee costs (+20% QoQ) and other expenses (+30% QoQ) led to an 18bps dip in Ebitda margin to 11.4%. Ebitda was up 26% YoY/8.5% QoQ to Rs 1.2 billion.

Titagarh Rail Systems expects PRS capacity to increase to 15-20 cars/month by end of FY25 and to reach 72 cars/month by FY27. Overall, we largely maintain our estimates and forecast 10,200 wagons manufacturing in FY25E and FY26 and 116/388 passenger cars during the same period.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.