Cable stock jumps 11% after receiving order worth ₹287 Cr for Kavach Systems

Synopsis: Quadrant Future Tek has received a major order from Chittaranjan Locomotive Works, marking an important step for the company in the railway safety space. The order strengthens its position as a key supplier of train protection and safety systems for Indian Railways.

The shares of this small cap stock majorly engaged in manufacturing specialty cables and developing train control & signalling systems, jumped upto 11 percent after bagging orders worth Rs. 287 Crores for Kavach Systems.

With the market capitalization of Rs. 1220 Crores, the shares of Quadrant Future Tek ltd reached an intraday high of Rs. 336 per share rising nearly 11 percent from its previous day close of Rs. 304.7 per share. 

What is the NEWS

 Quadrant Future Tek has recently informed the stock exchange that it has secured an order worth about Rs.287.8 crore from Chittaranjan Locomotive Works for supplying 353 onboard KAVACH locomotive equipment under version 4.0. The work includes supplying the systems, installing them on locomotives, testing, commissioning, and providing warranty along with long-term annual maintenance. The project is expected to be completed within 12 months from the date of the purchase order. 

KAVACH is an important safety system designed to prevent train accidents and improve operational safety. This order not only adds strong revenue visibility for Quadrant Future Tek but also highlights the growing focus of Indian Railways on upgrading safety infrastructure using advanced technology.

About the Company and Financials

Quadrant Future Tek Ltd is majorly engaged in manufacturing specialty cables, designed for high-performance, safety-critical applications and also develops train control & signalling systems serving across various sectors such as Railways, Defence, Renewable Energy and EV. The manufacturing plant located at Basma, Mohali has a specialty cable production capacity of 1900 MT per anum and it can empower 2200 locomotives and 4500 station per annum with TCAS.

Being a leading supplier to Railways & Defence and expanding to Solar Power and EV cable markets, 62 percent of the revenue is contributed by the Public sector and 38 percent is contributed by private sector. The company sees its product ‘Kavach’ as a multi year opportunity since Indian Railways is planning to invest in Kavach signalling & telecom to boost safety and security. 

Year on Year analysis: Revenue from operations has decreased  from Rs. 40 Crore to Rs. 34 Crore, down 15 percent. Operating profit has turned into an operating loss  of Rs. 13 Crores from operating profit of Rs. 3 Crore and net loss has worsened from Rs. 4 Crores to Rs. 16 Crores 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 29 Crores to Rs. 34 Crores, up 20 percent. Operating profit has worsened from operating loss of Rs. 10 Crore to Rs. 13 Crore and net loss has also worsened from Rs. 14 Crore to Rs. 16 Crore. 

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