Commenting on the results, Mr. Deepak Jalan, Managing Director, Linc Limited said:

“In the quarter gone by, our company demonstrated remarkable resilience and adaptability in the face of challenges. Despite a decline in our relatively higher margin export revenues, which can be attributed to geo-political disruptions in some of our key markets, our domestic sector showcased a decent growth of approximately 12%. Our proactive response to this situation involves strategic diversification in our export initiatives, where we are actively exploring new markets and optimizing our presence in the existing ones.

Although our gross profit margin experienced a slight dip, reaching 29.0% from 30.5% in the same quarter of the previous year, we view this as temporary. Our unwavering confidence is bolstered by the strong demand we continue to witness for our Pentonic portfolio, the increasing popularity of our “Deli” stationery range, and the growing market share of our higher-margin products. Moreover, our innovative pipeline remains vibrant, promising exciting prospects on the horizon. Our margins were also affected during the quarter due to one-time prosperity rewards to employees, recognizing their dedication and hard work during the challenging Covid times which has been instrumental in making FY 23 our most successful year to date. This is over and above the impact of the annual increments.

As we move forward, we do so with unwavering confidence in our capabilities. Our focus on innovation, strategic market expansion, and employee motivation positions us strongly for sustainable growth. We are confident that these efforts will not only help us overcome current challenges but also pave the way for even greater achievements in the near future.”

I hold a few of JWL shares and I have reduced other Railway Stocks. Looking to Increase holding in future based on further analysis.

Q2 FY2024 Notes:

• Increasing the wagon capacity from 700 per month to 800 per month by the end of this FY at the Kolkata plant.

• By the end of next FY, the Jabalpur plant will become operational and wagon capacity will reach 1000 per month.

• Margins will increase because of backward integration. Adding wheelset manufacturing capacity and starting a freight brake business in Stone India.

• New businesses: Launching EV in next two quarters with better range, payload and battery capacity.

• Drone business is under planning and discussion.

• 700 crores QIP planned in next 12 months leading to equity dilution (Maybe will provide support to the stock price?).

• Current order book on wagons: 13,500 wagons worth of 5300 crores

• Expected orders: 20,000 wagons tender by Indian railways in mid-November. 10,000 export wagon tender expected soon.

• Management is expecting 25-30% of these tenders.

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Disc- Invested