Shares of Titagarh Rail Systems Ltd skyrocketed 8% higher on 19 February after the company announced securing Rs 170 crore from the Defence Ministry.

In its regulatory filing, the company said, “The company has received an order from the Ministry of Defence, Government of India, for procurement of 250 specialised wagons. The execution of the contract is scheduled to start 12 months after the signing of the contract and complete in 36 months.”

In January 2024, the company signed an agreement to foray into railway component and subsystem business in India and overseas with Amber Group.

Under the agreement, the company and Amber group, via its wholly-owned subsidiary Sidwal Refrigeration Industries, invested Rs 120 crore each to acquire equal control in the special purpose vehicle for setting up the new railway component business.

In its quarterly report for October-December, the company reported a 130% year-on-year increase in net profit to Rs 75 crore for the quarter under review.

Revenue from operations for the quarter stood at Rs 954.7 crore, marking a 24.6% YoY increase from the previous fiscal year.

At 12:52 pm, the shares of Titagarh Rail were trading 3.51% higher at Rs 991.40 on NSE.