The shares of TMT Bar Manufacturer gained 8.7 percent to Rs 94.50 after the company bought one of the two railway rakes from East Coast Railway following a previous arrangement.
At 3:01 p.m. on the National Stock Exchange, Gallantt Ispat Ltd shares were trading at Rs 93.20 per share, up 7.08 percent from the previous close price.
As per the company’s exchange filing, In continuation of the company’s previous corporate release dated July 10, 2023. The company has entered into an arrangement with East Coast Railway to purchase and own railway wagons in order to eliminate wagon shortages with the Indian Railway
In this regard, the Company bought two rakes costing Rs 55 crore to compensate for a shortage of rail wagons. The purchase is designed to simplify the logistics of transporting iron ores from their source to the company’s steel-producing facilities. Furthermore, this acquisition is estimated to save the company over 25% on freight expenditures.
Gallantt Ispat’s revenue climbed year on year, raising from Rs 1,021 crore in FY21-22 to Rs 1,036 crore in FY22-23. Within the same time span, net profit increased by 25 percent, from Rs 24 crore to Rs 30 crore.
Gallantt Ispat Ltd share rose by 59 percent in the last six months and by 47 percent over the last year.
In the most recent fiscal year, the firm exhibited declining profitability ratios, with a return on equity of 6.33 percent and a return on capital employed of 11.07 percent. while the company’s net profit margin stands at 3.49 percent.
According to the recent shareholding pattern, the promoters hold 68.79 percent of the company, while retail investors hold 31.19 percent.
Gallantt Ispat Limited is a leading Iron and Steel Manufacturing Company that is engaged in the business of Iron & Steel, Agro, Power, and Real Estate.
Written by Omkar Chitnis
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