Kalindee Rail Nirman (Engineers), which constructs railway lines and delivers other infrastructure projects for the Indian Railways, reported a three-fold increase in net loss for the first quarter (Q1) ended June 2016 while revenues fell eight per cent.
The standalone net loss in Q1 stood at Rs. 5.59 crore, up from Rs. 1.73 crore in the corresponding period last year, while total income from operations declined 8.19 per cent to Rs.67.67 crore in Q1 from Rs. 73.71 crore in the year-ago period.
The share price of the company closed 2.60 per cent lower at Rs. 116.10 on the Bombay Stock Exchange (BSE) on Thursday. Texmaco holds 42.87 per cent in the company, according to a regulatory filing by Kalindee Rail in July 2016.
Last week the stock had gained along with Texmaco Rail and Engineering and Titagarh Wagons after the Indian Railways announced nine projects worth Rs. 24,000 crore for expansion of network and connectivity across the country.
The projects comprise construction of additional railway lines in Assam, Jharkhand, Odisha, Maharashtra, Madhya Pradesh, Uttar Pradesh, Telangana, Andhra Pradesh and Chhattisgarh.
The Indian Railways said that the projects would give a fillip to its earnings and spur industrial growth in the areas.
The Indian Railways have embarked on a massive drive to improve and expand infrastructure this fiscal for which Rs. 1,21,000 crore was allocated in the budget presented by Union Railways Minister Suresh Prabhu.
Rail infrastructure companies are expected to benefit from multiple expansion projects of Indian Railways and metro rail projects under various stages of completion or commencement in Lucknow, Bengaluru, Hyderabad, Nagpur and Lucknow.
