Oriental Rail Infrastructure Limited has announced a significant boost to its order book with a new contract worth ₹60.00 crore. The company's material wholly-owned subsidiary, Oriental Foundry Private Limited (OFPL), has received a Letter of Acceptance (LoA) from the Ministry of Railways, Government of India, for the manufacture and supply of Constant Side Bearers (CCSB) for BG Bogie Wagons.

Contract Details

The order comes as a result of a tender issued by the Railways, further solidifying Oriental Rail Infrastructure's position in the rail infrastructure sector. According to the company's disclosure to the BSE, OFPL has already submitted the required bank guarantee, fulfilling a key condition precedent for the contract.

Project Scope

The project involves the production and delivery of Constant Side Bearers, which are crucial components used in the construction of broad gauge bogie wagons. These components play a vital role in maintaining the stability and performance of railway wagons.

Company's Response

Hemali Rachh, Company Secretary & Compliance Officer of Oriental Rail Infrastructure Limited, stated in the BSE filing that the formal order is expected to be issued by the railway authorities in due course. The company has committed to making further disclosures upon receipt of the final order, including relevant details such as the confirmed contract value and other material terms.

Market Impact

This new order is expected to have a positive impact on Oriental Rail Infrastructure's financial performance in the coming quarters. It demonstrates the company's continued competitiveness in securing government contracts within the railway sector, which is undergoing significant modernization and expansion.

The announcement underscores the ongoing investments in India's railway infrastructure and the opportunities it presents for companies specializing in rail components and technologies.

Oriental Rail Infrastructure Ltd. (ORIL) has released its financial results for the first quarter, showcasing a mixed performance with improved profitability despite a decline in revenue.

EBITDA and Margin Improvement

The company reported a Q1 EBITDA of ₹146.00 million, marking a 4.80% increase from ₹139.30 million in the same period last year. This growth in EBITDA was accompanied by an improvement in the EBITDA margin, which rose to 12.37% compared to 11.32% in the previous year. The expansion in margin indicates enhanced operational efficiency and cost management by the company.

Revenue and Profit

Despite the positive EBITDA performance, ORIL experienced a decline in revenue. The company's Q1 revenue stood at ₹1.17 billion, down from ₹1.23 billion in the corresponding quarter of the previous year, representing a 4.90% decrease.

The consolidated net profit for the quarter remained nearly flat at ₹58.70 million, compared to ₹58.60 million in the same period last year. This marginal increase in net profit, despite the revenue decline, suggests that the company has managed to maintain its bottom line through cost optimization measures.

Order Book Status

In a positive development, the company disclosed that it, along with its subsidiary Oriental Foundry Private Limited, has a robust order book totaling ₹2,163.36 crore. This substantial order book provides visibility for future revenue and indicates strong demand for the company's products and services in the rail infrastructure sector.

Upcoming Corporate Actions

The Board of Directors has announced several key dates for shareholders:

• The 34th Annual General Meeting (AGM) is scheduled for September 4, 2025, to be held virtually through video conferencing.
• August 28, 2025, has been set as the record date for determining shareholder eligibility for the final dividend.
• The Board has recommended a final dividend of ₹0.10 per equity share for the financial year ended March 31, 2025, subject to shareholder approval at the AGM.

Conclusion

Oriental Rail Infrastructure's Q1 results demonstrate the company's ability to improve profitability and operational efficiency in the face of revenue challenges. The strong order book position bodes well for future growth, while the upcoming dividend payout signals the company's commitment to shareholder returns. Investors and stakeholders will be keenly watching how ORIL leverages its improved margins and substantial order book to drive growth in the coming quarters.