Titagarh Rail Systems Ltd updates on BCNA wagons

Titagarh Rail Systems Ltd had requested the Indian Railways vide their letter dated 21.08.2024 to short close 3,089 BCNA wagons out of a total ordered quantity of 24,177 wagons. These wagons were pertaining to the tranche number 3 which were to be delivered between 01.09.2023 to 29.02.2024 but could not be delivered on account of various reasons.

The said request has been accepted by the Indian Railways under the terms of the contract and as a result of this short closure, and also placement of an additional order by the Indian Railways of 716 BOXNHL wagons against the same contract in favour of the Company, the total revised order quantity of the said order stands at 21,804 wagons amounting to Rs. 7,100 Crores. This decision was taken in the overall interest of the Company to balance the available capacity with workloads including execution of private wagon orders and thereby help save incurring liquidated damages on the said quantity.

The Company has received a favourable award against an earlier wagon contract dated 30.09.2020 by which a quantity of 390 BCNA wagons valued at Rs. 129.44 Crores, which was short closed by the Indian Railways, has been reinstated in favour of the Company. The delivery of these wagons, according to the award, have to be made in 6 months from the award date.

Shares of Titagarh Rail Systems Limited was last trading in BSE at Rs. 1188.75 as compared to the previous close of Rs. 1222.05. The total number of shares traded during the day was 108545 in over 12414 trades.

The stock hit an intraday high of Rs. 1235.00 and intraday low of 1181.25. The net turnover during the day was Rs. 130610431.00.

Source : Equity Bulls

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TitagarhRailSystems INE615H01020 CommercialVehicles IndianRailways BCNAWagons Update