Shares of Titagarh Rail Systems zoomed over 6 per cent on October 20 after the company's release of its second-quarter results on Thursday. The company reported a substantial growth of 46.4 per cent in consolidated net profit, reaching Rs 70.59 crore as compared to Rs 48.2 crore in the corresponding period of the previous year.
Formerly known as Titagarh Wagons Ltd, the company, a major player in passenger coaches and railway wagons, recorded a substantial 54 per cent growth in revenue from operations in Q2, reaching Rs 935.45 crore compared to the previous year's Rs 607.11 crore.
At 01:00 pm, the shares of the company were trading at Rs 833 price level, up by 37 points or nearly 4 per cent, on the National Stock Exchange (NSE).
The increase in the stock price was also led by the company's recent agreement with the Gujarat Metro Rail Corporation (GMRC) for the Ahmedabad Metro Rail Phase-II Project, valued at Rs 350 crore.
The company announced in its exchange filing that they have formally entered into an agreement with GMRC. This contract pertains to the design, production, supply, testing, commissioning, and training of 30 standard gauge cars intended for use in the Ahmedabad Metro Rail Phase-II Project.
“The prototype has to be delivered within 70 weeks from Letter of Acceptance (LOA) dated August 29, 2023 and delivery completion is 94 weeks from the said LOA. We are proud to announce that these state-of-the-art metro cars will be manufactured at our cutting-edge facility in Uttarpara, located in the Hooghly district of West Bengal,” the company said in its exchange filing.
On a year-to-date basis, the share prices of Titagarh Rail Systems have surged by 78 per cent or 367 points.