Dneprovagonmash, Ukraine’s largest railcar manufacturer, controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, ended January-September 2023 with a net profit of UAH 51.09 million, up 8.3 times compared to the same period in 2022.
According to the company’s interim financial statements published on Wednesday in the NSSMC’s information disclosure system, its net sales revenue decreased by 14.7% to UAH 724.62 million.
In January-September, the company increased its gross profit by 18.7% to UAH 96.9 million, earning UAH 53.5 million in operating profit (4.6 times more).
The report does not disclose the number of railcars produced and sold in the reporting period.
As before, the report mentions the risk of rising prices for components, materials and energy (material costs account for 80-90% of the cost of production) and lower prices for railcars as price risks for the company.
“Ongoing military operations, uncertainty of further developments, including the intensity or potential timing of the cessation of these actions, may significantly affect the economic situation in the country and, accordingly, the activities of Dneprovagonmash,” the report says.
As reported, in the first half of this year, DVM received UAH 57.85 million in net profit against almost UAH 25 million in losses for the same period last year, with net income growing by 17.2% to UAH 578 million.
Thus, in the third quarter of 2023, the company received a UAH 6.76 million loss against a UAH 31.14 million net profit in July-September 2022, with net income falling 2.4 times to UAH 146.61 million.
“Dneprovagonmash is one of Ukraine’s leading freight car design and manufacturing companies. Its annual production capacity is 9 thousand units.
As reported, an extraordinary meeting of shareholders of DVM JSC on July 25 decided to transform it into TAS Dneprovagonmash LLC.
In October of this year, in cooperation with Austrian partners, the company shipped the first lightweight modular freight cars (MultiBOX) intended for use on the EU railways as part of the TransANT innovation project.
In 2022, DVM’s net income increased by 77.3% to UAH 1 billion 108.7 million, with net profit of UAH 48.64 million compared to a loss of UAH 111.3 million a year earlier. At the same time, sales of railcars increased by 35% to 623 units, and production by 21% to 577 units.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include the financial sector (banking and insurance) and pharmacy, as well as industry, real estate, and venture capital projects.
