Titagarh Wagons posted a good set of Q1 earnings. Revenue has more than doubled, albeit on a low base and there is also a big jump on the margin front.

On order book, Umesh Chowdhary, Vice Chairman and Managing Director of the company said, “Our order book in India is about Rs 2,300-2,400 crore and for consolidated that is including our Italian subsidiary, our order book is about Rs 4,700 crore. The Indian railway wagon orders for the current year are yet to be finalised. The tenders have recently been issued. So, that would of course add up to our order book.”

On revenues, he said, “In terms of revenue, we expect to maintain the same quarter, I mean quarter to quarter variations can happen, but on a full-year basis, we expect to maintain the same run rate going forward for the current year."

On commodity price hikes, Chowdhary said, “Majority of our businesses are with price variation process. Of course, we do have some contracts which are on firm price, but they are not substantial in nature. In our business, the price variation is linked to the wholesale price index. So, typically there might be a quarter to quarter lag in being able to pass on the price increase.”

“But I have always maintained that in the sector that we operate in, the EBITDA margins that we normally get is between 8 to 10 percent. So again, on a quarter to quarter basis based on the wholesale price index, based on the inventory that we carry, etc. the margin might vary. But on a blended basis over a period of time, I would say 8 to 10 percent EBITDA is what we look at," he added.

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(Edited by : Anshul)