TITAGARH RAILSYSTEMS 2023-24 Annual Report Analysis

Tue, 6 Aug

TITAGARH RAILSYSTEMS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TITAGARH RAILSYSTEMS Income Statement Analysis

• Operating income during the year rose 38.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 77.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY24 as against 9.0% in FY23.
• Depreciation charges increased by 20.4% and finance costs decreased by 9.0% YoY, respectively.
• Other income grew by 1.4% YoY.
• Net profit for the year grew by 114.2% YoY.
• Net profit margins during the year grew from 4.8% in FY23 to 7.5% in FY24.

TITAGARH RAILSYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,796	38,533	38.6%
Other income	Rs m	428	434	1.4%
Total Revenues	Rs m	28,223	38,967	38.1%
Gross profit	Rs m	2,506	4,458	77.9%
Depreciation	Rs m	225	271	20.4%
Interest	Rs m	807	735	-9.0%
Profit before tax	Rs m	1,901	3,886	104.4%
Tax	Rs m	555	1,001	80.5%
Profit after tax	Rs m	1,346	2,884	114.2%
Gross profit margin	%	9.0	11.6
Effective tax rate	%	29.2	25.8
Net profit margin	%	4.8	7.5

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TITAGARH RAILSYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -10.6%.
• Long-term debt down at Rs 374 million as compared to Rs 496 million during FY23, a fall of 24.7%.
• Current assets rose 78% and stood at Rs 21 billion, while fixed assets rose 33% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 36 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 56%.

TITAGARH RAILSYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,636	22,183	130.2
Current Liabilities	Rs m	9,165	8,198	-10.6
Long-term Debt	Rs m	496	374	-24.7
Total Liabilities	Rs m	23,106	35,947	55.6
Current assets	Rs m	11,685	20,766	77.7
Fixed Assets	Rs m	11,413	15,181	33.0
Total Assets	Rs m	23,106	35,947	55.6

TITAGARH RAILSYSTEMS Cash Flow Statement Analysis

• TITAGARH RAILSYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 858 million, an improvement of 109.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 775.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 7 billion, an improvement of 989% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 464 million net cash flows seen during FY23.

TITAGARH RAILSYSTEMS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	409	858	109.7%
Cash Flow from Investing Activities	Rs m	-614	-5,369	-
Cash Flow from Financing Activities	Rs m	665	7,244	988.9%
Net Cash Flow	Rs m	464	2,736	489.0%

Current Valuations for TITAGARH RAILSYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.4, an improvement from the EPS of Rs 11.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,453.6, stands at 65.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.8 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 32.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	232.6	286.1
TTM Earnings per share	Rs	11.3	21.4
Diluted earnings per share	Rs	10.0	21.4
Price to Cash Flow	x	22.5	32.3
TTM P/E ratio	x	24.0	65.1
Price / Book Value ratio	x	2.2	4.6
Market Cap	Rs m	21,403	101,780
Dividends per share (Unadj.)	Rs	0.5	0.8

Ratio Analysis for TITAGARH RAILSYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 1.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 6.3x during FY24, from 3.4x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 13.0% during FY24, from 14.0% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 20.5% during FY24, from 26.7% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.1% during FY24, from 9.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	2.5
Debtors’ Days	Days	367	504
Interest coverage	x	3.4	6.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.3	10.1
Return on equity	%	14.0	13.0
Return on capital employed	%	26.7	20.5

To see how TITAGARH RAILSYSTEMS has performed over the last 5 years, please visit here.

TITAGARH RAILSYSTEMS Share Price Performance

Over the last one year, TITAGARH RAILSYSTEMS share price has moved up from Rs 651.3 to Rs 1,453.6, registering a gain of Rs 802.3 or around 123.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,882.2 (up 2.0%). Over the last one year it has moved up from 43,070.0 to 71,882.2, a gain of 28,812 points (up 66.9%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for TITAGARH RAILSYSTEMS and quarterly results for TITAGARH RAILSYSTEMS)