Key takeaways of the call

Indian order book of the company stood at Rs 1300 crore from about Rs 450 crore as end of Sep 2017. Lot of current order book will be booked in FY19. Of which the order book of Titagarh standalone was Rs 850 crore and that of CIMMCO was about Rs 450 crore. Titagarh standalone order book of Rs 850 crore is inclusive of shipbuilding order book of about Rs 150 crore.

Order book of Italian subsidiary currently is about Euro 130 million and that of French subsidiary is Euro 25-26 million.

French Subsidiary has some technical problem during quarter ended Dec 2017 and resultant suspension of production has resulted in losses. Moreover the stainless steel wagon orders picked up at high competition last year have also turned in losses. No more losses is expected going forward in stainless steel wagon order as it got completed in quarter ended Dec 2017 itself. French subsidiary is expected to turn in a steady business of Euro 50 mln going forward with an EBITDA margin of 6%.

Italian subsidiary – The company booked a loss of Rs 31 crore in Q3FY18 and that is largely due to execution of Euro 220 million order that come at the time of acquisition of the company in July 2017 which are onerous are have some technical issues. Post acquisition by the company, the Italian subsidiary has booked orders worth Euro 130 million. Current order book of the Italian subsidiary stands at Euro 130 Million, which is lower for the size of operation and infrastructure it has. Of the current order book new orders was Euro 70-80 mln and balance are legacy/inherited orders.

The focus going forward for Italian subsidiary is building order book. The company is participating for orders worth Euro 2.5 billion, which are large order and win of one large order will change the fortune of Italian subsidiary. Next three quarters are going to be difficult one for Italian subsidiary.

The company won order to build and supply 2300 wagons from IR (out of total wagon order for 9500 wagons) which translate into 24% share. Apart from this the company has also bagged private wagon orders.

Dedicated freight corridor initial wagon order will start kicking in 2018.

Reverse auction for wagon tendering is deliberated by IR but not yet implemented the recent wagon order for 9500 numbers are tendered out alike past.

DFC wagon orders are for 25 tonne axle load and the company has already produced proto type of this 25 tonne axle wagon. The rolling stock acquisition especially for DFC is yet to be finalized.

Company's auto carrier design was approved under Private design approval scheme of IR.

The debt at Italy and French subsidiary was Euro 45 million and Euro 6 million respectively. Long term debt at CIMMCO was Rs 75 crore. Titagarh has a working capital debt of Rs 80-90 crore.

Metro coach market in the country is estimated at about 3000-4000 numbers over next five years with each coach approx costing about Rs 10 crore.

ICF order for making train set at its premises – As per the condition of current tender only one company will qualify out of 20 companies that manufacture railway sets globally. So the company represented to GOI for change in PQ conditions and IR decision is yet to come in.