Titagarh Rail Systems Ltd’s share price surged nearly 8% on Friday, reaching its 52-week high of ₹1,308.95 on the BSE. The company disclosed its Q4 results after Thursday’s market hours.
The remarkable rise in Titagarh Rail Systems’ share price has resulted in multibagger returns for investors, with an increase of over 170% in the past year. This surge can be attributed to the optimistic outlook on railway capital expenditure, which has bolstered earnings prospects and consequently boosted the company’s share price.
Firm Q4 Performance and Robust Growth:
In the January-March 2024 quarter, the company’s net profit stood at ₹83 crore, marking an 8% year-on-year growth. Additionally, the EBITDA grew by 11.41% year-on-year to reach ₹120 crore, while revenues rose by 8% year-on-year to ₹1,052 crore.
For the fiscal year 2024, Titagarh Rail System reported a revenue of ₹3,853 crore, indicating a robust improvement of 38.58%. Its net profit for the same period reached ₹297 crore, reflecting a growth of 7.71%.
Strong Order Book:
Titagarh Rail Systems concluded the fiscal year with a sturdy order book valued at ₹14,750 crores, with Passenger Rolling Stock accounting for 46% of this order book. Additionally, its share of orders in joint ventures amounted to ₹13,326 crore, with orders for Vande Bharat trains with BHEL constituting more than half of this order book. Hence, the combined order book stands at around ₹28,000 crore.
Metro Coach Supplies to Drive Growth:
Titagarh Rail Systems reported that the revenue of the passenger rolling stock segment for Q4 was affected due to the nearing completion of the Pune metro contract. However, other projects in this segment, such as the Bangalore metro (CRRC), Surat Ahmedabad metro, and Vande Bharat trains, are progressing through various stages of execution, and contractual deliveries are expected to commence subsequently.
