Titagarh Wagons said that it has lifted the suspension of work at its factory near here from Monday.

The company had suspended work on September 6 following alleged hooliganism at the plant. Lifting of suspension came after a tri-partite agreement among the company, the State Government and the workers’ representatives.

The company said operation at the plant was affected during the last month of the July-September quarter. JP Chowdhary, Chairman of the company, told BusinessLine this, along with two other factors, hit the bottomline of Titagarh Wagons in the quarter ended September 30, 2014.

In notes to the quarterly profit and loss account, the company also said that though it had entered into a contract with the Indian Railways for supplying 1,538 wagons during the fiscal, lower pricing of wagons this year and higher input cost caused a margin squeeze.

“Considering the market situation as also as a prudential practice, we have recognised a loss of Rs 17.10 crore during the quarter,” Chowdhary said.

The company reported a net loss of Rs 10.25 crore during Q2 against a net profit of Rs 1.77 crore in the corresponding quarter last financial year.

Merger of subsidiaries

Meanwhile, Titagarh Wagons has planned to merge some of its subsidiaries with it. A scheme of amalgamation of the subsidiaries aims to absorb the businesses or interests of the companies.

As a result, Cimmco Ltd, another subsidiary of the company, would be a wholly-owned subsidiary. The fledgling ship-building business of the group would also be merged with TWL. Currently, the group operates a brownfield Hooghly riverside yard. It is also developing another Greenfield facility near here.

On the BSE, the stock closed at Rs 269, up 3.62 per cent.