Titagarh Rail Systems Ltd · NSE:TITAGARH
Titagarh Rail Systems — Titagarh Wagons — Investor Presentation (June 2022)
49 slides from Titagarh Rail Systems's investor presentation, Jun 7, 2022
Slide 1: Cover letter to stock exchanges
f- TITAGARH 7th June, 2022 National Stock Exchange of India Limited Exchange Plaza Bandra-Kurla Complex Bandra (E), Mumbai-400051 Scrip Code: TWL (EQ) BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001 Scrip Code: 532966 Dear Sirs, Sub: Corporate Presentation - June 2022 Dear Sirs, Pl
Slide 2: Corporate Presentation June 2022
Caserta Plant, Italy Corporate Presentation June 2022 1
Slide 3: Our Story
Our Story 1. FY2022 & Q4 Performance update Business Overview 2. Titagarh Wagons History and Overview 3. Domestic Business Five Growth Pillars of Domestic Business 4. International Business Transformational Journey 5. Sustainability A Strategic Pillar of Growth 2
Slide 4: FY2022 & Q4 Performance Update
1. FY2022 & Q4 Performance Update 3
Slide 5: Key Developments
Key Developments Bags the Single Largest Order Ever from the Indian Railways for 24,177 wagons valued at over Rs.7,800 crores ❖ Received the order for 24,177 nos. of wagons from Indian Railways amounting to Rs. 7,800 crores approximately. The Bank Guarantee has been submitted and final contract exec
Slide 6: Transforming Business to Future Potential
Transforming Business to Future Potential Transforming Business by Creating Distinguished Freight and Passenger Rolling Stocks Segment • Well established business segment with strong order book of ~Rs. 9,050 Cr at the end of FY22 Freight Rolling • Largest installed capacity of 8400 wagons per annum.
Slide 7: FY2022 In Review: Standalone
FY2022 In Review: Standalone Rs. In Crores Strong Performance with Revenue up by 17% and Profit After Tax up by 58% y-o-y Total Income EBITDA Profit after Tax 5.3% 44% 39% 12.1% 58% 12.6% 4.8% 1,498 79 182 1,037 131 50 FY21 FY22 FY21 FY22 FY21 FY22 • Total Income registered a double-digit Y-o-Y grow
Slide 8: Q4 FY2022 In Review: Standalone
Q4 FY2022 In Review: Standalone Rs. In Crores Strong Performance with Revenue up by 56% and Profit After Tax up by 23% y-o-y Total Income EBITDA Profit after Tax 11.4% 56% 34% 6.3% 23% 5.0% 13.3% 425 273 48 21 36 17 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 • Total Income registered a strong d
Slide 9: Order Book: Standalone
Order Book: Standalone Standalone Order Book as on March-2022: Rs. 10,675 Crore TWL India Order Book Breakup • Strong order book across all segments 447, • Around 85% of Indian order book is from Freight Rolling 1,178, 4% stocks backed by recent order received from Indian 11% Railways Freight Rollin
Slide 10: Financial Performance: Standalone
Financial Performance: Standalone Q4 y-o-y Q3 q-o-q Year Ended y-o-y Rs. Crores FY2022 FY2021 Growth (%) FY2021 Growth (%) FY22 FY21 Growth (%) Total Income 424.5 272.6 55.7% 387.3 9.6% 1,497.7 1,037.2 44.4% EBITDA 48.4 36.1 33.8% 47.3 2.4% 181.7 130.7 39.1% Margin (%) 11.4% 13.3% 12.2% 12.1% 12.6%
Slide 11: Segment Performance: Standalone
Segment Performance: Standalone All the Business verticals has delivered strong growth on a Y-o-Y basis contributing to profitability Q4 YoY Q3 QoQ Year Ended YoY Rs. Crores FY2022 FY2021 Growth FY2021 Growth FY2022 FY2021 Growth Freight Rolling Stock Revenue 334.0 227.3 46.9% 316.4 5.6% 1,214.4 963
Slide 12: Italy Business
Italy Business Legacy orders are on verge of completion and will be fully executed by end of Q4 FY22 Legacy orders are on verge of completion and will be fully executed by end of Q2 FY23 Rs. In Crores Total Income • In January 2022, Italy has won a framework contract of Euro 280 mn 209 206 comprisin
Slide 13: FY2022 In Review: Consolidated
FY2022 In Review: Consolidated Revenue up 27% and EBITDA up by 60% with Margins Improving to 8.6% Rs. In Crores Total Income EBITDA Profit Before Tax & exceptional items 27% 60% 8.6% 2.1% 6.8% 1,967 1,545 169 42 105 (0.4)% -6 FY21 FY22 FY21 FY22 FY21 FY22 • Total Income of Rs. 1,967 crores, register
Slide 14: Q4 FY2022 In Review: Consolidated
Q4 FY2022 In Review: Consolidated Rs. In Crores Total Income EBITDA Profit Before Tax & exceptional items 7.7% 12% (5)% 499 34 6.5% 0.9% 444 32 4 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 -4 (0.9)% Q4 FY21 Q4 FY22 • Total Income registered a double-digit • EBITDA is Rs. 32.4 Crores, declined of 5% on growth o
Slide 15: Order Book: Consolidated
Order Book: Consolidated Strong Diversified order book across Indian and Italian business operations. Consolidated Order Book as of March 2022: ~Rs. 15,123 Crore TWL India Order Book Breakup Entity Wise Breakup 447, 1,178, 4% 11% 4,448 , 29% Freight Rolling Stocks ~Rs. 15,123 Cr ~Rs. 10,675 Passenge
Slide 16: Financial Performance: Consolidated
Financial Performance: Consolidated Q4 y-o-y Q3 q-o-q Year Ended y-o-y Rs. Crores FY2022 FY2021 Growth (%) FY2021 Growth (%) FY22 FY21 Growth (%) Total Income 498.7 443.8 12.4% 484.3 3.0% 1,966.6 1,545.5 27.2% EBITDA 32.4 34.2 (5.2)% 40.0 (19.0)% 168.8 105.5 60.0% Margin (%) 6.5% 7.7% - 8.3% - 8.6%
Slide 17: Segment Performance: Consolidated
Segment Performance: Consolidated All the Business verticals has delivered strong growth on a Y-o-Y basis contributing to profitability Q4 YoY Q3 QoQ Year Ended YoY Rs. Crores FY2022 FY2021 Growth FY2021 Growth FY2022 FY2021 Growth Freight Rolling Stock Revenue 334.0 233.3 43.2% 316.4 5.6% 1,214.4 9
Slide 18: Financial Performance Trend: Standalone
Financial Performance Trend: Standalone Strong CAGR Growth in Last 5 Years On Y-o-Y basis Revenue up 44% , EBITDA up by 39% with Margins of 12.1% and PAT up by 73% with margin of 5.3% Rs. In Crores Revenue From Operations EBITDA and Margins PAT and Margins +44% +72% +128% CAGR CAGR CAGR 1,501 1,498
Slide 19: Consistent improvement in financial performance and becoming net cash positive company
Consistent improvement in financial performance and becoming net cash positive company Rs. In Crores Return on Capital Employed Operating Cash Flow Net Debt (Cash) 16.8% 15.2% 14.0% 304 7.8% 225 126 100 1.3% 29 38 14 FY18 FY19 FY20 FY21 FY22 (116) -92 FY18 FY19 FY20 FY21 FY22 (295) FY18 FY19 FY20 FY
Slide 20: Financial Performance Trend: Consolidated
Financial Performance Trend: Consolidated Rs. In Crores On Y-o-Y basis Revenue up 27% , EBITDA up by 60% with Margins of 8.6% Revenue From Operations EBITDA and Margins PAT and Margins +27% +60% Y-o-Y Y-o-Y 1,967 1,800 1,592 1,545 1,301 169 155 116 105 8.6% 8.6% 7.3% 6.8% 52 58 3.2% 3.2% FY18 FY19 F
Slide 21: Business Overview
2. Business Overview Titagarh Wagons History and Overview 20
Slide 22: Business Overview
Business Overview 1997 Freight Rolling Passenger Rolling Stock Year of Establishment Shipbuilding Bridges & Defence 30,000 MT Steel Foundry Long standing execution track Manufacturing Capacity 95% Revenue Contribution record, a leadership position in from wagon and coach division the freight wagons
Slide 23: Titagarh Edge – Mobility for Billions.. Globally
Titagarh Edge – Mobility for Billions.. Globally Well Positioned to Leverage Indian Railway Sector Growth Growing Demand Leadership in Freight Rolling Stock Possesses Modern day Passenger Rolling Stock Technology • The first private manufacturer of passenger • Titagarh is the largest manufacturer of
Slide 24: Mission, Vision and Values
Mission, Vision and Values Our Mission Our Vision Values TITAGARH Group Become a leader in Heavy Focus on bringing full committed to serves Engineering equipment satisfaction to all the products that meet the segment and a world-class stakeholders with customers’ requirement and service provider for
Slide 25: Our Journey
Our Journey… 1997 2008 2015 2019 2020 2021 2022 2023 Operations Started Listing on Stock Business Expansion in Pune Metro Order Consolidation of First Metro Delivery for the First Metro Delivery for Bags the single Italy Acquired Titagarh Subsidiaries Company which is the the Company which is larges
Slide 26: Business Verticals
Business Verticals Freight Rolling Passenger Rolling Stock Shipbuilding Bridges & Defence Key Products Key Products Key Products All types of Freight Wagons, All Passenger Rolling Stock, Naval Vessels, Passenger Ship, Bogies, Couplers, Draft Gears, Propulsion and Electrical Bailey-type portable modu
Slide 27: Business Vertical Freight Rolling
Business Vertical Freight Rolling ▪ One of the largest supplier of wagons to Private Players 8,400 Largest installed capacity in terms of Wagons per annum with state ▪ TWL continues to have its dominant position as market leader in Wagon Capacity of the art facility at Titagarh Plant this business s
Slide 28: Business Vertical Passenger Rolling Stock
Business Vertical Passenger Rolling Stock ▪ Niche segment at a nascent stage, well positioned to drive future growth. Titagarh is also the first private company in India to possess modern day 200 Coaches per year Leading manufacturer of Passenger Rolling Stock in India and Italy passenger rolling st
Slide 29: Business Vertical Shipbuilding Bridges & Defence
Business Vertical Shipbuilding Bridges & Defence Shipbuilding: Product Offering : ▪ TWL diversified into shipbuilding through merger with 25-year-old Corporate Shipyard and currently one of the most trusted brand, licensed for warship manufacture by the Government of India ▪ Only private shipyard to
Slide 30: Five Growth Pillars of Domestic Business
Domestic Business 3. Five Growth Pillars of Domestic Business 29
Slide 31: Five Growth Pillars of Domestic Business
Five Growth Pillars of Domestic Business 1 Leading player in wagons manufacturing with effective project management and timely execution capabilities 2 3 Passenger Rolling Stock and Diversified Order Book of Rs. 10,675 Shipbuilding segment well positioned to crore at the end of March 2022 deliver gr
Slide 32: Leading player in wagons manufacturing with effective project management
1. Leading player in wagons manufacturing with effective project management and timely execution capabilities Leader in Wagons Manufacturing in India Efficient Operating Model and Timely Execution Manufacturing In-house design Largest installed capacity of 8,400 Wagons per annum with Excellence with
Slide 33: Passenger Rolling Stock segment well positioned to deliver growth
2. Passenger Rolling Stock segment well positioned to deliver growth Titagarh is the only Integrated Player in the Passenger Rolling Stock segment in India 1. Passenger Rolling Stock ❖ Engaged in the manufacturing of trains for the Indian Railways since 2007 ❖ Titagarh further strengthened its knowl
Slide 34: Shipbuilding segment well positioned to deliver growth
2. Shipbuilding segment well positioned to deliver growth Land comprising of 8.8 Acres was acquired in Falta, West Bengal to expand Ship Building business 1. Acquired a facility asset and infrastructure of Precision Shipyard ❖ Strategic acquisition for the company because it gives us access to infra
Slide 35: Diversified Order Book of Rs. 10,675 crore at the end of March 2022
3. Diversified Order Book of Rs. 10,675 crore at the end of March 2022 TWL India Order Book Breakup • Strong order book across all segments • Around 85% of Indian order book is from Freight Rolling 447, 1,178, 4% stocks backed by recent order received from Indian 11% Railways Freight Rolling Stocks
Slide 36: Experienced promoters and senior management team
4. Experienced promoters and senior management team committed to strengthen business offerings and drive future growth Experienced Leadership Team Independent Business Heads Driving Growth Mr. J. P. Chowdhary Mr. Sudipta Mukhejee Executive Chairman Over 57 years of experience in the railway sector a
Slide 37: Industry growth led by higher infrastructure spend and government's policy support
5. Industry growth led by higher infrastructure spend and government’s policy support In FY22, capital expenditure is projected to be over Rs 2.15 Lakh crore, an annual The Indian railway wagon market is increase of 21% over FY20 poised for massive growth in the Railways will monetise dedicated frei
Slide 38: International Business
4. International Business Transformational Journey 37
Slide 39: Titagarh Firema S.P.A.
Titagarh Firema S.P.A. Titagarh Firema Overview Strategic Fit and Fully Aligned Businesses Access to TFA’s technical knowhow in designing and Firema was established in 1930 and Titagarh Wagons acquired the company in 2015 1 manufacturing advanced railway coaches, train power systems and metro coache
Slide 40: Titagarh Firema – Transformational Journey
Titagarh Firema – Transformational Journey 1. Acquisition of Firema in 2015 4. Well Positioned to Deliver Profitable Growth • Acquired in 2015 from the extraordinary administration • Three sites – Caserta, Tito, Spello (Since integrated into one site i.e. Caserta) 2. Challenges Faced • The inheritan
Slide 41: Titagarh Firema – Integrated Passenger Rolling Stock Plant
Titagarh Firema – Integrated Passenger Rolling Stock Plant Caserta Plant of Titagarh Firema has production capacity of 20 car/month going upto 40 car / month in Aluminum using full shift ; 15 intercity coaches/ month for a total of 180 coaches/ year Electrified Test Tracks 2 Assembly Line 3 • 2 Elec
Slide 42: Titagarh Firema – Capability and Expertise
Titagarh Firema – Capability and Expertise Passenger Rolling Stock Railway Electricals Metro – M88 High Speed Electrical - ETR500 Converters Regolatori Motors LOCO : DHC Locomotive Electrical Loco - E403 Battery Charger Static Group TCU - MNG 41
Slide 43: Titagarh Firema – Pune Metro Rollout
Titagarh Firema – Pune Metro Rollout ❖ India's first Aluminum body metro train manufactured by Titagarh Wagons flagged off and launched for normal operation on March 6, 2022, by Shri Narendra Modi, the Hon’ble Prime Minister of India ❖ The Pune Metro Train has the capacity for 970 passengers, each c
Slide 44: Sustainability
Sustainability 5. A Strategic Pillar of Growth 43
Slide 45: Sustainability a Core Pillar of Strategy
Sustainability a Core Pillar of Strategy Focus on Energy Efficiency Committed to Highest Governance • Solar Power Plant of 833.48 KW capacity • 50% of the Board of Directors are independent Environment Social Governance • Light sensitive switches have been installed • Board of Directors with diversi
Slide 46: 50% of the Board of Directors are Independent
50% of the Board of Directors are Independent Mr. J. P. Chowdhary Mr. Umesh Chowdhary Mr. Anil Kumar Agarwal (Executive Chairman) (Vice Chairman and Managing Director) (Director-Finance and Chief Financial Management leadership with Management leadership with about 27 Officer) experience of about 56
Slide 47: Awards and Recognitions
Awards and Recognitions Titagarh Quality Certificates • ISO9001:2015,ISO14001:2015&BSOHSAS18001:2007 • ISO14001:2015:QMS • ISO14001:2015(Unit1) • ISO9001:2008 • ISO14001:2015(Unit2) • ISO14001:2004 • ISO14001:2015:QMS • ISO3834:2006 • Certificate Level CL1 according to EN15085-2:2007 forwelding of r
Slide 48: Disclaimer
Disclaimer This presentation contains statements that are “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Titagarh Wagons’ future business developments and economic performance. While
Slide 49: Titagarh Wagons Limited
Titagarh Wagons Limited Kolkata Registered & Corporate Office Titagarh Towers, 756, Anandapur, E.M. Bypass Kolkata – 700107, West Bengal, India T: +91 33 4019 0800 F: +91 33 4019 0823 E: corp@titagarh.in Delhi Office A-50 Type A, Hortron Complex Electronic City, Sector -18 Gurugram - 122015, Haryana, In