Titagarh’s Choudhary Says Slowing Economy May Hurt Profit Growth

Umesh Chowdhary, managing director at Titagarh Wagons Ltd. (TWL), comments on the outlook for sales and profit growth in the year ending March 31. He spoke in a phone interview from Kolkata today.

“Our business is directly linked to the economy and if the economy doesn’t grow then the requirement for transportation doesn’t grow. Slow economic growth will also reduce overall sales and profit growth. So we have to look at other options like increasing market share or supplying more to the private sector, which is again easier said than done.

‘‘For passenger coaches, we have participated in some tenders and are expecting substantial growth. There is some delay happening in the finalization of Indian Railways’ tenders and that is delaying the whole process.

‘‘We have an order book of 5 billion rupees ($112.5 million) as of March 31 and at least 80 percent will be delivered this financial year. About 60 percent to 70 percent of our production every year goes to Indian Railways and remaining to private container chain operators and third-party container operators and logistics providers.

‘‘Our endeavor is to maintain the same growth rate as last year.’’

To contact the reporter on this story: Pradipta Mukherjee in Kolkata at pmukherjee7@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net

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