Shares of Titagarh Rail Systems Ltd, formerly known as Titagarh Wagons Ltd, surged as much as 11.6% on Tuesday to hit a record high of ₹1,045 apiece on the BSE, a day after the railway wagon and component manufacturer entered into a strategic partnership with Switzerland-based ABB Group to supply propulsion systems for metro projects in India.
The scrip opened higher at ₹960, up 2.5% as against the previous closing price of ₹936.05. At 12:22 pm, the share price of the railway component manufacturer was trading 6.73% higher at ₹998.30. This is in line with the broader BSE Sensex, which was trading 0.61% or 397.72 points higher at 66,052.47. The company's shares hit a 52-week low of ₹163 on November 22 last year.
The company's market capitalisation stood at ₹12,714.57 crore with more than 3.73 shares exchanging hands on the BSE as against the two-week average of 1.64 lakh shares. In the past one month, three months and one year, the counter has given 18.47%, 45.38% and 501.20% in return.
"The partnership covers an agreement for Titagarh to purchase ABB propulsion systems including traction converters, auxiliary converters, traction motors and TCMS software. It also includes securing the manufacturing rights and production license for traction motors along with the complete transfer of technology of the GoA 4 (Driverless metro) TCMS software from ABB to Titagarh," the company says in a statement.
According to the company, the strategic partnership is already underway with orders of propulsion equipment and TCMS for metro coaches in Gujarat.
"Working in partnership with ABB will enable Titagarh to participate fully in our government’s Atmanirbhar Bharat and Make in India initiatives. We have already set up manufacturing facilities for some of the items for the propulsion chain and are in the process of making it a holistic solution. This agreement is a huge step towards developing in-house capabilities for our own TCMS, including driverless (Grade of Automation 4) TCMS, complete with the setup of a TCMS Laboratory and the development of the source codes, which is often referred to as the ‘brain of the train’ and is the most 2/2 modern in the world. This development of local TCMS capabilities will enable us to further align with the government’s vision of the Aatmanirbharta," says Umesh Chowdhary, MD, Titagrah Rail.
In the July to September quarter in FY24, the company’s consolidated net profit surged 46.4% to ₹70.59 crore as against ₹48.2 crore in the same period last year. The company’s revenue from operations grew by 54% to ₹935.45 crore as against ₹607.11 crore in the same period last year.