Titagarh Wagons hit an upper circuit of 5% at Rs 32.75 after the company said it entered into strategic alliance with ABB for railway propulsion business in India.
Titagarh Wagons on Wednesday (17 June) has entered into an exclusive cooperation agreement with ABB, a leading global engineering company, to address the large and growing business of propulsion equipment (traction converters) for the Indian railway EMU/MEMU market.According to the agreement, Titagarh and ABB will work together to design, develop and manufacture 3 phase IGBT based propulsion systems for EMU/MEMU, which would be manufactured in Titagarh's plant at Uttarpara, Kolkata with certain components being supplied by ABB. This agreement goes into effect immediately with the first units to be put into revenue service in less than 2 years.
Titagarh has manufactured and supplied more than 300 EMU/MEMU coaches to the Indian Railways and is now executing an order for design, manufacture and supply of 102 state of the art metro coaches for Pune Metro ordered by the Maharashtra Metro Rail Corporation.
Titagarh Firema SpA, the group's Italian subsidiary, is currently executing various orders for a total of more than 50 trains to different Italian cities and regions.
Titagarh, in cooperation with its Italian subsidiary, had bagged a developmental order for propulsion systems required in the EMU/MEMU trains (local and suburban trains of Indian Railways) for an approximate order value of Rs 65 crore from the Indian Railways.
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The cooperation agreement signed with ABB will support the execution of the above orders.
Titagarh's vice chairman & managing director, Umesh Chowdhary, said "Titagarh on a group basis is on its way to re-establish normal levelsof operations post lockdown for COVID-19.
On a consolidated basis, the railway wagon maker reported a net profit of Rs 7.82 crore in Q3 December 2019 as against a net loss of Rs 23.39 crore in Q3 December 2018. Q3 net sales rose 20.5% YoY to Rs 454.16 crore.
Titagarh Wagons is the largest private sector manufacturer of railway coaches (EMUs, MEMUs) and the largest wagon maker (other than railways).
The counter also witnessed bargain hunting. The stock has lost 11.4% in the past six sessions to end at Rs 31.20 yesterday, from its recent closing high of Rs 35.2 recorded on 08 June 2020.
The S&P BSE Small Cap index (of which the company is a constituent) fell 1% during the same period.
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