Titagarh Rail Gets Rs 467-Crore Order From Garden Reach Shipbuilders
The vessels will be built under the classification regulations of Indian Register of Shipping.
Titagarh Rail Systems Ltd. received a letter of intent from Garden Reach Shipbuilders & Engineers Ltd. on Thursday for an order worth Rs 467.3 crore.
The order was for the construction of two vessels. The vessel will be used by the Geological Survey of India for coastal exploration, according to the exchange filing.
The main activities include offshore geological mapping, mineral exploration that includes dredging, ocean environment monitoring and research and shipboard data processing and sample analyses in modern, well-equipped scientific laboratories.
The vessels will be built under the classification regulations of Indian Register of Shipping. Additionally, the execution is scheduled to be completed within 28 months from the date of letter of intent.
According to the company, the order is worth Rs 445 crore and a GST of Rs 22.25 crore.
Q1 Performance
Titagarh Rail Systems' consolidated net profit was down 54% in the first quarter of the current financial year as wagon dispatches fell on account of lower supply of wheelsets from Rail Wheel Factory.
The railway parts manufacturer posted a bottom line of Rs 30.86 crore in the June quarter as compared to Rs 67.01 crore in the year-ago period.
The firm's wagon dispatches were at 1,628 in quarter ended June, according to a press release from the company. This compares to 2,455 wagons in the previous quarter and 2,073 wagons in the first quarter of the last fiscal. The firm reported that this production hiccup has now been normalised.
Revenue decreased by 24.8% year-on-year for the three months ended June, reaching Rs 679.30 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 26% year-on-year to Rs 75.10 crore. The Ebitda margin contracted to 11.1%.
Share Price Today
The business update was shared aftermarket hours. The stock settled 2.56% higher at Rs 855.10 apiece on the NSE, compared to a 0.13% advance in the benchmark Nifty 50.
Titagarh Rail's shares have fallen 40.47% in the last 12 months and 22.60% year-to-date.
All nine analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target of Rs 1,045.63 implies an upside of 22.3%.
