Tver Wagon Building Plant records the reduction in revenue
Tver Wagon Building Plant (TVZ, part of TMH) records a decrease in revenue by 26.4% and a net loss in the first quarter of 2021. According to the manufacturer’s reporting under RAS, its revenue for the quarter amounted to 9.9 billion rubles. It is 3.5 billion rubles less than in the same period in 2020.
As a result, for the quarter TVZ records a net loss of 1.4 billion rubles against a profit of 0.6 billion rubles a year earlier. At the same time, in 2020, the company’s revenue for the first quarter was a record in comparison with the same periods of the previous 5 years, inform Railway Supply magazine, citing tzdjournal.
TVZ associates such a decrease in revenue with a change in the number of railcars sold and their nomenclature range. So, in first quarter 84 single-deck railcars of “Project 2019” has been realized against the FPС, as well as another 132 carriages of not compartment single-deck railcars exported.
In turn, in 2020, during the same period, the plant supplied 187 railcars to FPС, including 37 double-deck railcars, and also exported 18 non-compartment single-deck cars. The plant currently performs two major long-term contracts: the supply of 3.7 thousand railcars to the FPС ( “firm” order — 2.6 thousand) in the years 2019-2025. And to supply 1.3 thousand railcars to Egypt in 2020-2025 (some TVZ produces itself, some – in the form of carriage sets, will be delivered to the TMH site in Hungary for further assembly).
In turn, FPС revenues in the I quarter of 2021 decreased by 25.1%, from 40.5 to 30.3 billion rubles. (-10.2 billion rubles, according to RAS). These results are related to falling traffic due to the pandemic: in comparison with the the same quarter of 2019 IPEM notes the decrease in traffic volumes by 22.9%. Substantial losses in revenue due to the pandemic FPC fixed also in 2020: -44.7% or 104 billion rubles. At the end of April, the Government of the Russian Federation approved the allocation of 5.6 billion rubles to FPС subsidies, however, this support measure is traditional as compensation for losses during transportation in the regulated segment.
The TVZ report also noted that the company is now carrying out R&D on the creation of “Project 2020” railcars (models 61-4523, 61-4524 and 61-4525). These are new double-decker railcars, which are designed to operate in the form of a traction, as well as have increased dimensions and air springs in the bogies for a smoother ride. Model 61-4523 – compartment, was held in early spring break in. Model 61-4524 is the staff and was aimed at testing in November last year. At the same time, 61-4525 is a dining car, its design was also completed last year.