Kalindee Rail

Usually, around the Railway Budget, this stock along with other “railway” stocks is up. But this time, with very low expectations, rather negative expectations, this stock closed in the red yesterday. It is being seen that sops and major expansion plans for the railways get announced but when it comes to implementation, nothing happens. And that has largely depressed the railway stocks. As such the company did not have a very good Q3FY13. Net sales dropped 5% at Rs.77 crore and operating expenses remained around the same levels. Interest outgo rose  and so did taxation. The ‘other income’ component came to the rescue and the company ended the quarter with a net profit at Rs.3.26 crore down 6%.

FY12 was an exceptionally lean year and it had ended with a net profit at Rs.8 crore and in current fiscal, for 9MFY13, net profit has already surpassed that of FY12 at Rs.9 crore. The year could be much better but for now, the expectations from the Railway Budget are very muted and hopes of projects taking off o the ebb. Let us wait and watch how it all pans out today.