TAS-DniproVagonMash LLC (DVM, Kamianske, Dnipro region), a major Ukrainian railcar manufacturer controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, ended January-March 2024 with a net profit of UAH 7.17 million, down 5.2 times from the same period in 2023.
According to the company’s interim reporting, published on Monday in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), its net income in the first quarter decreased by 4.4% to UAH 379.24 million.
The company reduced its gross profit by 42.4% to UAH 34.26 million, earning UAH 9.31 million in operating profit (4 times less).
The report notes that 177 railcars were produced during the reporting period, accounting for 28% of the total Ukrainian freight car production. Among the main competitors are Kryukiv Carriage Works, Karpaty OMZ, and Ukrzaliznytsia plants.
The company sold 157 freight cars (in the first quarter of 2023, the number was not specified) at an average selling price of UAH 2.162 million.
The main clients are Overfood LLC, Weststar Group, and Ukrros-trans.
According to the company, exports amounted to UAH 1.6 million (0.4% of sales).
“Russian aggression has dramatically changed the freight base of rail logistics in Ukraine, and as a result, freight traffic has more than halved. The largest share of the decline was in the mining and metals, fuel and energy, and construction sectors,” the company reminds.
“TAS-Dniprovagonma notes that in the first quarter of this year, the demand for railcars continued to decline in the railcar market.
Among the reasons are the restrictions on the maximum service life of railcars canceled in 2021, the deterioration of the Grain Corridor in the ports of Greater Odesa due to constant aggravations, the blockade of western border crossings by European agricultural market participants, and an increase in the turnover of rolling stock due to the lack of traction rolling stock at Ukrzaliznytsia due to significant wear and tear.
As reported, in early 2023, TAS Group became a strategic investor in the TransAnt GmbH railcar building joint venture of Austrian Voestalpine and ÖBB Rail Cargo with a 40% stake, and in the spring of 2024 it became the majority shareholder in TransAnt, increasing its stake to 61%.
In October 2023, TAS Dneprovagonmash shipped the first lightweight modular freight cars (MultiBOX) for use on EU railways, and by the end of the year it had a full line of platform freight cars for the EU market.
According to Tigipko, TAS Dneprovagonmash plans to sell up to 100 railcars for export to Europe, with the average price of a railcar being around EUR100 thousand.
This year, the company plans to invest UAH 100.2 million in the development of the European direction (for the purchase of equipment): UAH 4.8 million in the first quarter, UAH 7.4 million in the second quarter, UAH 62.8 million in the third quarter, and UAH 25.2 million in the fourth quarter.
It is also planned to invest UAH 15 million in energy saving this year, and UAH 20 million in other investments (certification, testing, development of regulatory documentation).
As reported, in 2023 the company produced 378 freight cars (including for the EU market), which is 34.8% less than in 2022, while sales decreased by 40.6% to 370 units.
Net income from sales of railcars and other products decreased by 2.8% to UAH 1 billion 77 million, while net profit increased slightly to UAH 49.2 million.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include the financial sector (banking and insurance) and the pharmacy sector, as well as industry, real estate, and venture capital projects.
