Shares of Titagarh Rail Systems are down close to 9 per cent in early trade on July 31 after a subdued performance in the June quarter prompted investors to book partial profits.
This comes after the wagon’s manufacturer reported a decline of 0.8 per cent year-on-year (YoY) in its revenue from operations at Rs 903.1 crore for the June quarter while its profit surged 5.5 per cent YoY.
The profit after tax (PAT) for the quarter stood at Rs 71.3 crore against Rs 67.6 crore in the corresponding quarter of the previous year.
The decline in the company’s revenue has been attributed to the current projects being in the design phase and near completion of earlier projects, however, the company stated that his transition positions Titagarh well for future growth.
The EBIT declined to Rs 107 crore in Q1FY25 versus Rs 109.2 crore, reporting a decline of 2 per cent YoY. The EBITDA was down to 11.3 per cent in the quarter that ended June 2024 from 11.7 per cent for the year-ago period.
“We achieved 13 per cent year-over-year growth, highlighting the robustness of our business to success, despite encountering high labor absenteeism due to the heat wave and the general elections,” said the company in its investor presentation.
As of June 24, the company boasts a strong order backlog of 20,300 wagons and is aiming to reach a steady output of 1,000 wagons per month.
In the first quarter of FY25, the company received approximately Rs 350 crore worth of orders across business segments which includes Rs 250 crore worth of orders for freight rolling stocks and Rs 100 crore worth of orders for propulsion systems.
As of June ’24, the company’s order book consists of orders for 20,300 wagons and 1,592 Metro and Vande Bharat coaches.
The shares of Titagarh Rail Systems have been performing extremely well and have given returns of nearly 1200 per cent in the last 2 years. In the last one year, the stock has surged by 147 per cent.
Overall, while Titagarh Rail Systems has shown robust long-term growth, its recent financial results have led to short-term market volatility. Investors are now watching closely to see if the company can rebound and continue its upward trajectory in the coming quarters.
Titagarh Share Price History
According to BSE Analytics, the stock of Titagarh Rail Systems Ltd has given good returns to investors in the past years. In the last 3 months, the stock has jumped more than 62 per cent. In the last 1 year, the stock has given a multibagger return of 154.98 per cent. In just 2 years, its shares have seen a rise of 1238.67 per cent. In the last 3 years, this railway stock has given a return of more than 1983 per cent. In the last 5 years, it has given a great return of 4293.76 per cent. The 52-week high level of the stock is Rs 1,896.50, while the 52-week low level is Rs 611.95. The market cap of the company is Rs 22,751.79 crore.
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