Titagarh Rail Systems gains nearly 4% – Know More

Shares of Titagarh Rail Systems Ltd saw an uptick of nearly 4% today, currently trading at ₹1,174.05, up by ₹40.35. This rise comes after significant developments in the company’s wagon contracts with the Indian Railways.

Recent Order Revision and Short Closure

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On October 1st, Titagarh announced that it had requested a short closure for 3,089 BCNA wagons from its existing order of 24,177 wagons from the Indian Railways. These wagons were scheduled to be delivered between September 2023 and February 2024 but could not be delivered due to various reasons. Accepting this request, Indian Railways revised the order.

Following this decision, along with the Indian Railways placing an additional order of 716 BOXNHL wagons, the company’s total revised wagon order now stands at 21,804 wagons, valued at approximately ₹7,100 crores. This move was made to align the company’s production capacity with its workload and to avoid penalties for undelivered wagons, allowing a better balance between public and private orders.

Favourable Arbitration Award

In another positive development, Titagarh received a favorable arbitration award concerning a previous wagon contract dated September 30, 2020. Under this ruling, 390 BCNA wagons that were earlier short-closed by Indian Railways have now been reinstated. The reinstated wagons are valued at ₹129.44 crores and must be delivered within six months as per the terms of the award.

These developments reflect Titagarh’s continued efforts to balance its order book and enhance its efficiency in meeting both public and private wagon requirements.

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