Indian operations have stabilised and the current orderbook is healthy, Umesh Chowdhary, VC & MD, Titagarh Wagons, told CNBC-TV18.
Titagarh Wagons, the railway wagon manufacturer, reported mixed earnings for the March-ended quarter. Lower finance cost and higher other income aided the profit but margins have contracted for the company in this quarter.
“I would segregate the results into Indian and Italian operations. Our Indian operations have stabilised, the orderbook is healthy; execution is reasonable. On the Indian side, we have a revenue of Rs Rs 1030 crore and EBITDA of Rs 130 crore. Our profit after tax (PAT) is of about Rs 60 crore,” Chowdhary said.
“Italian operations which consolidate into the Indian balance sheet, went through a rough patch, because of the second wave of Covid-19 and the ensuing intermittent lockdowns as imposed in Italy. Having said that, we were still able to double our Italian revenues this year, we did close to 70 million euros,” he said.
On debt, Chowdhary said, “We are net-debt free in our Indian business as of March 31. As far as Italian operations are concerned, the Italian government has come up with a variety of schemes for both quasi-equity and soft loans. We have received the support of about 10 million euros under a scheme and we are expecting further support.”
For the entire management interview, watch the video.