Titagarh Rail Systems Shares Surge on Strong Q4 Earnings

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Titagarh Rail Systems Shares Surge on Strong Q4 Earnings

Titagarh Rail Systems Shares Soar on Strong Q4 Earnings

Shares of Titagarh Rail Systems witnessed a significant surge on Thursday, reaching an intraday high of Rs 1,216.30 on the BSE. This upward trend was driven by the company's robust quarterly earnings for the January-March period of the fiscal year 2023-24 (Q4FY24).

The company's revenue witnessed an 8% year-on-year (YoY) growth, reaching Rs 1,052.4 crore in Q4FY24 compared to Rs 974.2 crore in the corresponding quarter of the previous year. Earnings before interest, tax, depreciation, and amortization (EBITDA) also saw a substantial increase of 25.7% YoY, reaching Rs 120 crore compared to Rs 95 crore in Q4FY23.

The EBITDA margin also expanded by 160 basis points, reaching 11.4% compared to 9.8% in Q4FY23. The company's net profit witnessed a significant jump of 63.7% YoY, reaching Rs 78.9 crore compared to Rs 48.2 crore in the previous year.

The revenue growth was primarily driven by the company's freight rail systems segment, which recorded a 25.8% surge in the quarter, amounting to Rs 1,016.9 crore. However, the passenger rail systems segment experienced a decline of 78.6%, plummeting to Rs 35.5 crore.

Titagarh Wagons is a leading Indian rolling stock manufacturer in the private sector, specializing in a diverse range of products for various rail transport needs. Their core operations encompass the manufacturing of freight wagons, semi high-speed trains, metros, transit and propulsion systems, and passenger coaches. These products cater to both the Indian Railways and international export markets.

At the time of writing, the company's stock was trading 3.86% higher at Rs 1154.30 per share, while the S&P BSE Sensex was trading marginally lower by 0.03%. The company is currently trading at a price-to-earnings multiple of 58.96 times.