Deliveries of MEMU to aid revenues in Q3, Q4: Titagarh

It was a weak second quarter for Titagarh Wagons. EBITDA came in at -60.8 percent at Rs 2.06 crore versus Rs 5.26 crore . However the year on year (Y-o-Y) total income was up 13.8 percent to Rs 199.2 crore versus Rs 175 crore.Umesh Chowdhary, VC & MD, Titagarh Wagons in an interview to CNBC-TV18 said margins were under pressure mainly due to lower than expected domestic growth. Orders from railways were not released, which impacted margins in Q2 but now railways have started releasing big ticket projects like the locomotive orders worth Rs 40,000-50,000 crore.Release of these orders is great news for their industry, says Chowdhary because they now expect the second wagon tenders for the year to be released in coming 10-days.Therefore, a combination of this expected order and the contribution from French, Italian subsidiary shows good traction going forward. HeThe company’s prototype of Mainline Electric Multiple Unit (MEMU) has got approved and deliveries have started in Q3, which are likely to aid revenues going forward.  However, he clarified that major share of revenues come from non-government sources.For more details, watch video