Texmaco Rail & Engineering Ltd.'s share price jumped on Friday after it doubled its net profit in the December quarter.
During the quarter, revenue rose 48% year-on-year to Rs 1,326 crore, while net profit more than doubled to Rs 76.7 crore versus Rs 30.5 crore. The Ebitda was up 58% to Rs 131 crore, and the Ebitda margin expanded to 9.8% from 9.2%, an exchange filing said.
The company has approved the transfer of Belgharia Engineering Udyog Pvt. as a going concern on a slump-exchange basis. One of the rationale for the same is to reorganise the businesses carried on by it to exploit the growth potential and attract a fresh set of investors/strategic partners, it said.
"The segregation of the business verticals shall enable them to move forward independently, with specialisation building on their respective capabilities," the filing said. "It will also help to channelise resources required for all the businesses to focus on the growing businesses and attracting right talent and providing enhanced growth opportunities to existing talent in line with sharper strategic focus on each business segment under separate entities."
The share price rose as much as 8.6% during the day to Rs 201.90 apiece, the highest since Jan 21. It pared gains to trade 6% higher at Rs 197.44 apiece, as of 2:59 p.m.. This compares to a 1% advance in the NSE Nifty 50.
It has fallen 10.1% in the last 12 months. The total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 53.88.
Four analysts tracking the stock have a 'buy' rating, according to Bloomberg data.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
