Titagarh Rail's shares down 9 percent on profit booking after subdued results

Titagarh Railsystems shares have risen 145 percent in the past year.

Shares of Titagarh Rail Systems are down close to 9 percent in early trade on July 31 after a subdued performance in the June quarter prompted investors to book partial profits.

At 09.30 am, shares of Titagarh Rail were trading at Rs 1,598.25 on the NSE.

The wagons manufacturer's net profit for the April-June period grew 8.4 percent year-on-year to Rs 67 crore. However, revenue dipped around a percent to Rs 903 crore in Q1 as compared to Rs 910.80 crore in the corresponding quarter of the preceding fiscal.

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Dragged by the fall in revenue, Titagarh's operating performance took a hit as EBITDA margin contracted 50 basis points on year to 11.2 percent.

The company bagged orders worth Rs 350 crore through the first quarter of the current fiscal, including some for freight rolling stocks worth Rs 250 crore and those for propulsion systems worth Rs 100 crore.

As of the end of the June quarter, the order book was made up of orders for 20,300 wagons and 1,592 metro and Vande Bharat coaches.

Overall, Titagarh's subdued earnings prompted investors to take home partial profits, also guided by the fact that the stock has delivered more than 145 percent returns in past one year.

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