Shares of Titagarh Rail Systems Ltd skyrocketed 9% on 16 May after the company announced its quarterly earnings for January-March. 

The rail wagon manufacturer reported a 64% year-on-year increase in net profit to Rs 79 crore for the quarter under review from Rs 48.2 crore reported in the same quarter of the previous fiscal year. 

The revenue during the quarter stood at Rs 1,052.4, marking a 8% YoY increase from the same quarter last year. The growth in the freight segment offset the weakness in the passenger segment as the Pune contract nears completion. 

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the quarter grew by 25.7% YoY to Rs 120 crore against Rs 95.5 crore reported in the same quarter last year. The EBITDA margins expanded by 160 basis points to 11.4% during the quarter from 9.8% during Q4FY23.

In its regulatory filing, the company added, “Recommendation of a dividend of 40% (i.e. Rs. 0.80) per equity share of Rs. 2 each for the financial year 2023-2024. The dividend as recommended by the Board is subject to the approval of the shareholders at the ensuing Annual General Meeting of the company, the date of which will be intimated in due course.”‘

The company’s board has also reappointed Anil Kumar Agarwal, Executive Director, who was designated as Deputy Managing Director & CEO for the next three years from 29 May 2024.

At 11:53 am, the shares of Titagarh Rail Systems were trading 7.10% higher at Rs 1,191.50 on NSE.