Titagarh Rail Systems Shares Rise 2% On Contract Agreement with Gujarat Metro Rail Corporation
Titagarh Rail Systems witnessed a more than 2% increase in its share price during early trading on October 4, thanks to a significant contract signing with the Gujarat Metro Rail Corporation for the Surat Metro Rail Phase I Project.
As of 09:22 am, Titagarh Rail Systems was trading at Rs 789, marking a gain of 2.38% on the BSE.
The contract entails the design, manufacture, supply, testing, commissioning, and training for a total of 72 standard gauge cars. The total order value for this project stands at approximately Rs 857 crore.
The execution of the contract is scheduled to commence 76 weeks after the signing date and is anticipated to be completed within 132 weeks thereafter.
The Surat Metro Rail Project comprises two corridors spanning a total distance of 40.45 kilometers, featuring 38 stations and an estimated cost of Rs 12,020 crores.
This development comes on the heels of a letter of acceptance received by the company in August for a Rs 350-crore contract from the Gujarat Metro Rail Corporation (GMRC). That contract was also for the design, manufacture, supply, testing, commissioning, and training of 30 standard gauge cars.
In June, Titagarh Rail Systems secured an order worth Rs 857 crore for the provision of 72 standard gauge metro coaches to be used in Phase-1 of the Surat Metro Rail project.
Notably, in the June quarter, the company reported an impressive 110.87% year-on-year surge in revenue from operations, reaching Rs 911 crore, while its net profit stood at Rs 62 crore.
Titagarh Rail Systems is primarily engaged in the manufacturing of railway wagons, coaches, and related components. This latest contract underscores the company’s continued growth and presence in the rail systems industry.
