Railway sector companies have been one of the best-performing stocks in the last year. However, the last quarter has been a slow one for the high-flying railway stocks. Investors in the companies must be hoping for a turnaround this earning season.
What To Expect: Antique Broking in its preview for the second quarter sees a 4% year-on-year increase in revenue for the railway sector stocks while profit may fall by 2%. Antique's coverage includes Titagarh, Jupiter Wagons, RVNL, RITES and IRCON.
Among them, Titagarh is the brokerage's key pick with the company expected to post a 27% year-on-year increase in revenue to ₹1,191.3 crore while its net profit will grow 37% to ₹96.8 crore.
| Quarter | Revenue (Sep-24) | Revenue (Sep-23) | Change YoY% (Revenue) | EBITDA (Sep-24) | EBITDA (Sep-23) | Change YoY% (EBITDA) | Net Profit (Sep-24) | Net Profit (Sep-23) | Change YoY% (Net Profit) |
|---|---|---|---|---|---|---|---|---|---|
| IRCON | 2595.3 | 2883.6 | -10 | 158.7 | 172.5 | -8 | 204.6 | 230.4 | -11 |
| RITES | 524.1 | 582.4 | -10 | 110.1 | 137.8 | -20 | 93.9 | 110.2 | -15 |
| RVNL | 5160 | 4914.3 | 5 | 309.6 | 298.3 | 4 | 355.8 | 394.4 | -10 |
| Jupiter Wagons | 1081.6 | 879.3 | 23 | 173.1 | 121.2 | 43 | 116.4 | 81.6 | 43 |
| Titagarh | 1191.3 | 935.5 | 27 | 149.1 | 115.1 | 30 | 96.8 | 70.9 | 37 |
| Total | 10552.4 | 10195.1 | 4 | 900.5 | 844.9 | 7 | 867.4 | 887.5 | -2 |
See Also: What’s Up With Yes Bank Share Price Today?
RITES is expected to be laggard among the railway names with a net profit decline of 15% from the previous year to ₹93.9 crore and revenue to fall 10% to ₹524.1 crore.
According to the brokerage, the increase in revenue will be backed by robust execution in the wagon manufacturing space. The execution ramp-up on existing order books and order inflows is also expected to help the sector, the research firm added.
The margin is expected to remain at 8.5%, increasing by 0.25% year on year due to margin contraction in RITES affected by competitive bidding. According to the brokerage, the outlook on capex, ordering activity, and execution traction of new projects won would become the key monitorable, says the brokerage.
Read Next: BEL Shares In Green After 5 Days As It Bags Orders Worth ₹500 Cr
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.