Active Stocks
Sat May 18 2024 12:49:03
  1. Tata Motors share price
  2. 952.95 0.76%
  1. Power Grid Corporation Of India share price
  2. 316.85 1.12%
  1. Tata Steel share price
  2. 167.90 0.39%
  1. ITC share price
  2. 436.50 -0.02%
  1. State Bank Of India share price
  2. 821.30 0.42%
Business News/ Markets / Stock Markets/  40% Dividend: Multibagger railway wagons stock declares dividend with Q4 results, net profit soars 64% YoY; do you own?
BackBack

40% Dividend: Multibagger railway wagons stock declares dividend with Q4 results, net profit soars 64% YoY; do you own?

Titagarh Rail Systems Q4 Results: The rolling stock manufacturer declared a 40 per cent dividend for FY24 while announcing its March quarter results today

Titagarh Rail System's net profit rose 64 per cent in the March quarter. (File Picture: A welding man at a fabrication unit in Titagarh, West Bengal)Premium
Titagarh Rail System's net profit rose 64 per cent in the March quarter. (File Picture: A welding man at a fabrication unit in Titagarh, West Bengal)

Titagarh Rail Systems FY24 Dividend: Titagarh Rail Systems announced its January-March quarter results for fiscal 2023-24 (Q4FY24) and also declared board recommended a dividend of 40 per cent for the previous financial year on Wednesday, May 15. Titagarh Rail Systems has given massive multibagger returns to investors over the last one-to-three year time periods.

‘’Recommendation of dividend of 40 per cent (i.e. Re. 0.80) per equity share of Rs. 2 each for the financial year 2023-2024. The dividend as recommended by the Board is subject to approval of the shareholders at the ensuing Annual General Meeting of the company, date of which will be intimated in due course,'' said Titagarh Rail Systems in a regulatory filing to the stock exchanges today.

Also Read: Titagarh Rail share price jumps nearly 9% to 15-week high; here's why

Titagarh Rail Systems Q4 Results

India's leading freight wagon manufacturer's net profit soared 64 per cent to 79 crore in the March quarter, compared to 48 crore in the corresponding period last year. Titagarh Rail System's revenue from operations in the fourth quarter of FY24 rose eight per cent to 1,052.4 crore, compared to 974.2 crore in the year-ago period.

On the operating front, the private rolling stock manufacturer's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the March quarter rose 25.7 per cent to 120 crore, compared to 95.5 crore in the year-ago period. Margin rose 11.4 per cent in the quarter-under-review compared to 9.8 per cent. 

The company's board announced the re-appointment of Anil Kumar Agarwal, Executive Director, designated as Deputy Managing Director & CEO (Freight Rail Systems) for a period of three years with effect from May 29, 2024. 

The board also announced the elevation of Prithish Chowdhary, Director (Marketing & Business Development) & Deputy CEO (Passenger Rail Systems) to the position of Deputy Managing Director with effect from May 15, 2024.

Multibagger returns

The confidence of investors in the railway sector has increased tremendousli in the last one year, buoyed by its earnings visibility and the substantial capital expenditure plans outlined by Indian Railways. This optimistic sentiment has triggered a significant surge in the shares associated with the railway sector, with Titagarh Rail Systems emerging as a standout performer.

In CY23 alone, the company's shares witnessed an astounding return of 367 per cent. Reflecting on previous years, the stock delivered impressive gains of 140.27 per cent, 60 per cent, and 19 per cent in CY22, CY21, and CY20, respectively. 

Over the past five years, investors have enjoyed a remarkable return of 2,185 per cent on their investments in Titagarh Rail Systems. Ahead of the announcement of Q4FY24 results on Wednesday, shares of Titagarh Rail Systems settled 2.06 per cent higher at 1,111.35 apiece on the BSE.

Company Details

Titagarh is India's first private company for EMU/MEMU coaches and has delivered over 350 top-tier units to Indian Railways since 2007, a record unmatched by other private manufacturers. It offers mobility solutions and makes railway wagons, components, passenger coaches, and metro coaches.

In 2019, the company secured its first metro contract in Pune, introducing aluminum-bodied coaches, a novel concept in India. This led to more projects, including contracts with Gujarat Metro Rail and Bangalore Metro Rail. 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 15 May 2024, 09:02 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started