Titagarh Wagon, one of India's leading wagon manufacturer in the private sector has closed the fiscal ended March 2015 on a strong note with its net profit for the fourth quarter jump by whooping 398% to Rs 8.78 crore. Strong growth at bottom-line is largely due to higher sales and turnaround at operating level.
- The value of production was up by 43% to Rs 118.46 crore. But the sales excluding other operational income was up by 60% to Rs 118.04 crore and that seems came on weak base. Value of production for the quarter is 5.3% lower than operational income for the quarter. But the value of production for corresponding previous period was 6.1% higher than sales. Better execution of orders on hand compared to corresponding previous period as well as deliveries of inventory built up of earlier quarter seems have benefit the company.
- Operating profit margin jumped to 10.1% compared to negative 0.2% in the corresponding previous period. Sharp jump in OPM is attributed to weak base as the margin of corresponding previous period was down by under recovery in capacity as there was delay on the part of Indian Railways (IR) in release of wagon orders and providing drawings in case of EMU orders as well as lower procurement and delivery taken by private players due to recessionary trends.
- Even though the cost of materials both raw material and stores consumed as well as traded goods stood higher for the quarter in absolute terms, the material cost (as % to sales net of stocks) was down by 340 bps (to 68.9%). IR orders though are in nature of free material supply the company seems had the gain of lower commodity cost in case of other orders. Similarly the Job charges, power & Fuel cost, staff cost and other expenses were lower by 100 bps, 90 bps, 140 bps and 400 bps to 4.6%, 4.6%, 4.4% and 6.9% 4 respectively. Thus the operating profit stood at Rs 11.93 crore compared to operating loss of Rs 0.15 crore in corresponding previous period.
- Other income was lower by 23% to Rs 4.69 crore. Interest cost was lower by 42% to Rs 1.08 crore and the depreciation was higher by 30% to Rs 2.25 crore. Thus the growth at PBT was leaped by 474% to Rs 13.29 crore.
- Taxation was higher by 721% to Rs 4.51 crore. Thus hurt the growth at PAT moderated a bit to 398% to Rs 8.78 crore.
Yearly performance
Standalone sales were higher by 44% to Rs 378.00 crore. But with operating margin leap to 8.3% compared to negative 1.6% in the corresponding previous period, the operating profit stood at Rs 31.38 crore compared to a operation loss of Rs 4.30 crore in the corresponding previous period. The interest and depreciation cost stood higher by 6% (to Rs 6.31 crore) and 31% (to Rs 9.10 crore) with other income lower by 30% (to Rs 16.17 crore). Thus the growth at PBT (before EO) was higher by 438% to Rs 32.14 crore. But the EO Expense for the period was Rs 17.10 crore towards reorganization of loss on account of onerous contract compared to nil in the corresponding previous period. Thus hurt the growth at PBT (after EO) moderated to 152% to Rs 15.04 crore. The taxation was up by 134% to Rs 5.18 crore, but the tax rate at 34.45% was lower than 37% in corresponding previous period. Thus the growth at PAT level was 162% to Rs 9.86 crore.
Other developments
Subject to approval of shareholders, the company to pay a dividend of Rs 4 per share of Rs 10 face value for 2014-15.
Through postal ballot on April 13, 2015, the shareholders of the company have approved raising of funds through issuance of securities viz. Equity or Equity related instruments under Companies Act 2013 and SEBI (ICDR) Regulations of 2009 for an amount to the upto a maximum of Rs 250 crore (or equivalent thereof in foreign currency) in such a manner deemed appropriate by the board.
Share holders approved Sub-division of Equity Shares of Rs 10 each into Equity Shares of face value of Rs. 2 (Two) each. The record date for the subdivision has been fixed as April 24, 2015.
Consequent to the sale of entire shares held by the company and its Wholly Owned Subsidiary respectively in Greysham and Co Private in January 2015, the said company (Greysham) has ceased to be a Subsidiary/lndirect Subsidiary of the company on and from February 20, 2015.
The stock hovers around Rs 591.75.
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