Titagarh Rail shares increase 9% to move close to a 52-week high thanks to strong Q2 earnings.

23 Oct 2023 , 07:59 AM

On October 20, when the company signed a contract with Gujarat Metro Rail Corporation (GMRC) for the Ahmedabad Metro Rail Phase-II Project worth Rs 350 crore, shares of Titagarh Rail Systems increased 9% to Rs 866 a share on the BSE. 

The shares of this midcap company have increased 39% over the last three months, while the Sensex benchmark has decreased by 3%.

A contract for the design, manufacturing, delivery, testing, commissioning, and training of 30 standard gauge cars for the Ahmedabad Metro Rail Phase-II Project was signed by the business and GMRC, according to a filing on the exchange.

‘The prototype must be delivered within 70 weeks of the acceptance letter’s (LOA) date of August 29, 2023, and delivery must be completed within 94 weeks of the LOA. We are pleased to announce that these cutting-edge metro cars will be produced in our state-of-the-art factory in Uttarpara, which is located in West Bengal’s Hooghly district.
GMRC is putting the Rs 13,500 crore Phase-II Project of the Ahmedabad Metro Rail into action. The project will extend the city’s current network of Metro lines by 28.2 km.

The largest private sector producer of railroad wagons and a well-known name in passenger coaches is Titagarh Rail. The company also has engineering facilities in Bharatpur, Rajasthan, and Titagarh, West Bengal, in addition to Uttarpara.

The company recorded a 54% year-over-year (YoY) increase in revenues to Rs 935 crore in the second quarter of fiscal year 2023–24 (Q2FY24), which ended in September.

In Q2FY24, the company’s consolidated net profit increased by 46% YoY to Rs 70 crore from Rs 48 crore in the same quarter the previous year.

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