Titagarh Rail Systems Vice Chairman and Managing Director Umesh Chowdhary said that the order received from JSW Port Logistics is a great sign for the company amid the ongoing circumstances.
The railway freight wagon manufacturer on Saturday informed the exchanges that it has received an order of Rs 226.35 crore to manufacture 720 wagons.
Speaking on the order, Chowdhary said that the development is significant due to several reasons. The order for freight wagons is primarily important as the freight rail segment is witnessing a temporary slowdown with the delay in orders from the Indian Railways. The company had expected that the anticipated tenders would be out around this time, but in the meantime, participation by private players has helped to bridge the gap, giving a strong boost to the order book.
"Private players coming and filling in the order book is a great sign for us," Chowdhary said.
Additionally, he highlighted that JSW Ports is a big customer and also holds substantial potential. This makes the deal significantly meaningful, he noted.
As per the Letter of Intent, the contract period is expected to be six months from the effective date or commencement of work.
What to expect in FY27?
Expecting a boost in rail traffic, Chowdhury notes that the sector will gain more market share than expected with a surge in oil prices due to the ongoing Middle East crisis. He estimates that freight movement is likely to shift from roadways to railways as the latter is six times more efficient. "From that perspective, there should be a boost to the rail traffic," Chowdhary said, adding that "at the end of the day, material will have to move and the railway offers the most cost-effective, efficient solution."
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
