Wagon manufacturer, Titagarh Wagons reported a sales turnover of INR 128.04 crore and a net profit of INR 15.88 crore for the quarter ended December 10. For the quarter ended December 2009 the sales turnover was INR 137.33 crore and net profit was INR 15.46 crore.

The company`s current order book position stands at INR 600 crores, Mr Umesh Choudhary MD of Titagarh Wagons said that its subsidiary, Cimmco, which has an orderbook of about 1,760 wagons, would reach its optimal production level over the next five six months time and is expected to add to revenue growth in FY12.

He said that “For us practically the third quarter of this fiscal was a two month quarter because the Indian Railway orders were delayed and they were placed only in the month of October. So, whatever we had to do as far as this quarter in terms of revenue is concerned had to be done in two months. But if you look at the profits before tax, we have still been able to post a 20% growth on the profit. If you look at the nine month sales, we have a 20% growth on revenue and almost a 40% growth in profit in the current nine months compared to the previous nine months.”

Mr Choudhary further said that “Our current orderbook, the one that we declared during our results, was about close to INR 600 crore and these are the orders that were placed for the year 2009-2010 and only a part of 2010-2011 were placed. So, with the current budget that is expected in the next couple of weeks, we would have a clear picture as to what would be order placements over the next three to four months. So, I do not presume because what we understand is that the railway demand or the traffic growth is quite good and as a result of which the demand for wagons obviously would be good.”

(Sourced from CNBC TV 18)