Shares of Titagarh Rail Systems (formerly Titagarh Wagons) slumped back in the red on Wednesday morning after it posted its numbers for the quarter ended September.
What Happened: The railway company reported a substantial 46.4% growth in consolidated net profit at ₹70.59 crore, compared to ₹48.2 crore in the corresponding period of the previous year. The railway manufacturer’s revenue from operations amounted to ₹935.45 crore, marking a 54% increase when compared to ₹607.11 crore in the year-ago period.
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EBITDA for the July-September period was at ₹115.08 crore, more than double the EBITDA it reported in the same period last year. EBITDA margin was at ₹9.07. Earnings per share for the quarter came in at ₹5.58.
However, despite the strong results, the stock has been taking a plunge at the bourses. While it is not immediately clear what’s driving the fall, it comes amid broader market weakness today. Several other railway stocks such as IRCTC, IRFC and IRCON were all trading in the red.
The slump in the stock can be linked to the possible sale of shares by Madhusudan Kela’s Mahima Stocks and Akash Bhanshali. The names of the two entities do not show up in the latest shareholding pattern filing filed on Wednesday evening.
As of July 7, Bhanshali owned a 1.02% stake in the company, while Mahima Stock’s owned a 1% stake. The two entities possibly exited the stock during the September quarter.
Price Action: Titagarh’s share price was down 1.50% to trade at ₹810.25 shortly after market open on Thursday.
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