Titagarh Rail Shares Slump After Q1 Profit Misses Estimates
The wagons manufacturer's net profit rose 8.4% year-on-year to Rs 67 crore in the three months ended June, missing Bloomberg's estimate of Rs 81.5 crore.
The shares of Titagarh Rail Systems Ltd. slumped 9% on Wednesday after its profit missed analysts' estimates. The company's top line fell by 0.9% to Rs 903 crore, compared to Rs 911 crore in the same period last year.
The wagons manufacturer's net profit rose 8.4% year-on-year to Rs 67 crore in the three months ended June, according to an exchange filing. Analysts tracked by Bloomberg had set a consensus estimate of Rs 81.5 crore.
Operating income—or earnings before interest, taxes, depreciation, and amortisation—fell 4% year-on-year to Rs 102 crore, while Ebitda margin narrowed to 11.3% from 11.6% over the same period last year.
The company had commenced export of traction converters to Italy for approximately Rs 65 crore. The first set of eight converters was sent to Titagarh Firema, Italy, on July 19.
The export is part of an order received by Titagarh Rail from Firema and also marks the first dispatchment of traction converters from the passenger rolling stock facility in Titagarh, India.
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Shares of Titagarh Rail Systems fell as much as 8.99% to Rs 1,532.40 apiece on the NSE. It pared losses to trade 5.11% lower at Rs 1,597.65 apiece as of 9:57 a.m. This compares to a 0.15% advance in the NSE Nifty 50.
The stock has risen 144.93% in the last 12 months. Total traded volume so far in the day stood at 54.33% year-to-date. The relative strength index was at 47.85.
Out of eight analysts tracking the company, six maintain a 'buy' and two suggest a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 9.5%.
