TITAGARH RAIL SYSTEMS LIMITED — PPTs, 31-05-2025: Investor Presentation

1. Financial Highlights:

Net revenue was steady at ₹3,865 Cr, up 0.3% YoY, while Q4 revenue dipped ~4.6% to ₹1,004 Cr due to supply constraints. EBITDA fell ~2.9% to ₹439 Cr with a margin of 11.35%. PAT rose 2.2% to ₹303 Cr, maintaining a ~7.7% margin. Freight Rolling Stock drove revenue (₹3,610 Cr, +5.6%) and profits (PBIT margin ~12.1%), whereas Passenger Rolling Stock revenue declined sharply (~41% to ₹256 Cr) but saw margin improvement to 8.3%. The company remains net debt negative with borrowings of ₹25 Cr vs equity of ₹2,520 Cr. Operating cash flow was negative, impacted by working capital changes.

2. Strategic Initiatives & Growth Drivers:

New verticals in Ship Building & Maritime Systems and Safety & Signaling Systems aim to tap government infrastructure focus. Capacity expansions target 36 metro/mainline cars and 200 traction motors per month by FY27. Modernization of the Uttarpara plant with Industry 4.0 upgrades is expected to improve output and efficiency.

3. Business Developments:

Growth driven by acquisitions (Firema Italy), JVs (BHEL for Vande Bharat sleepers, Ramkrishna Forgings for wheels), and partnerships (ABB for propulsion electronics, Sidwal Refrigeration). Major order wins exceeded ₹1,200 Cr in FY25, with an order book of ~11,500 freight wagons and ~1,583 metro/Vande Bharat coaches.

4. Market Position & Competitive Advantage:

Holding ~25% market share, TRSL is India’s largest wagon maker with strong vertical integration enhancing margins and supply control. Its end-to-end propulsion and signaling capabilities position it well to capitalize on expanding passenger rail, freight corridors, and metro projects nationwide.

5. Investor Implications:

Solid financials and a robust order book support positive growth potential. Diversification into shipbuilding and signaling broadens future revenue streams, backed by government infrastructure trends. Execution risk centers on scaling new verticals and achieving ambitious production targets, while working capital pressures warrant close monitoring.