Titagarh Rail stock down 8% on weak operational performance in June quarter

Titagarh Rail in focus: Shares of Titagarh Rail Systems fell as much as 7.91 per cent to hit an intraday low of Rs 1,548.95 per share on Wednesday, July 31, 2024.

The fall in the share price came after the company reported a weak set of numbers on the operations front.

Its earnings before interest, tax, depreciation and amortisation (Ebitda) dropped over 4 per cent year-on-year (Y-o-Y) to Rs 101.7 crore in the June quarter of financial year 2025 (Q1FY25), from Rs 106.1 crore in the June quarter of financial year 2024 (Q1FY24).

Its Ebitda margin squeezed 50 basis points to 11.2 per cent in the June quarter of FY25, from 11.7 per cent in the June quarter of FY24.

The topline growth, or revenue from operations, fell 0.9 per cent to Rs 903 crore in Q1FY25 as against Rs 910.8 crore in Q1FY24.

However, the company’s profit rose 8.4 per cent year-on-year to Rs 67 crore in the June quarter of FY25, from Rs 62 crore in the same quarter a year ago (Q1FY24).

Titagarh Rail Systems Limited, formerly known as Titagarh Wagons Limited, is a rolling stock manufacturer in the private sector. Founded in 1984 in Kolkata, the company began as a rolling stock foundry unit. Later, the company expanded its offerings by transitioning from manufacturing railway components to producing complete freight wagons. 

Now, Titagarh Rail Systems is involved in designing, manufacturing, and supplying a diverse range of products, including freight wagons, semi high-speed trains, metro coaches, transit and propulsion systems, and passenger coaches for Indian Railways and international markets. 

The company has made notable contributions under the Atma Nirbhar and Make in India initiatives, including the supply of 102 metro coaches for the Pune Metro and a landmark order for 24,177 wagons. Additionally, Titagarh has been awarded major contracts for the manufacture and maintenance of Vande Bharat Trains and their wheels. Beyond railways, the company has interests in shipbuilding, bridge construction, and defence as well.

The market capitalisation of the company is Rs 21,641.40 crore, according to Bombay Stock Exchange (BSE).

At 1:29 PM, shares of the company were trading 4.47 per cent lower at Rs 1,606.95. In comparison, BSE Sensex was trading 0.30 per cent higher at 81,701.35 levels.