Expect to maintain FY16 margins at 13-17%: Titagarh Wagons

Titagarh Wagons expects to maintain its operating margins in the range of 13-17 percent for this fiscal as the company expects the orders to pick up from this month. The company’s margins are going to benefit from its private, defence, coach and export businesses.

Speaking to CNBC-TV18, Umesh Chowdhary, VC and MD, Titagarh Wagons says Indian railway wagon business does not benefit the company because of the pricing pressure from competitors.

With the demand for private wagons increasing in last 4-6 months, Titagarh’s orderbook stands at Rs 600 crore, he said adding, “orderbook of last 6 months is way above last three years' orderbook.”

With respect to the industrial growth he said, Q1 is usually a weak quarter as in this period the orders get finalised, budget gets sanctioned and funds gets released.