Titagarh Rail Systems Limited reported strong financial performance in the third quarter of fiscal year 2023-2024, thanks to government of India's focus on upgrading the country's railway network.
The company reported a 25% jump in revenue compared to a year-ago at Rs. 954.68 crores. EBIDTA, or profit from operations, jumped 52% to Rs. 110.67 crores, representing a healthy margin of 11.59%.
Net profit zoomed 91% to Rs. 75.03 crores compared to the same quarter last year. However, the company's shares were down 1% today. They have run up over 50% in the last six months.
This strong growth was driven by substantial increase in sales of both freight rolling stock and passenger rolling stock. TRSL is seeing good traction in these business segments due to the Indian government's focus on expanding and upgrading the country's railway infrastructure.
Titagarh Rail Systems Limited (TRSL) is a leading Indian manufacturer of rolling stock including railway wagons, coaches, metro trains, and components.
It is seen as a major beneficiary of the move to upgrade India's railway system, with new initiatives like Vande Bharat, and the expansion of metro networks.
Thanks to such initiatives, the company reached a key milestone during the quarter, achieving record monthly production of 1021 railway wagons in December 2023.
The company said it expects the growth momentum to continue in the coming quarters. He cited the government's sustained emphasis on rail infrastructure as a positive indicator of higher demand ahead.
With a healthy order book of Rs. 27,466 crores spanning both passenger and freight rail systems, TRSL is positioned for further growth.
Some of the notable orders secured by the company include India's largest ever wagon order from Indian Railways and contracts for manufacturing metro trains for Pune and Surat. The company has its production facilities in West Bengal and Rajasthan.