Texmaco Rail & Engineering , a leading manufacturer of freight wagons and provider of railway infrastructure in India, has reported a decline in its financial performance for the first quarter. The company faced challenges due to industry-wide supply chain disruptions but maintained a strong order book.

Key Financial Highlights

• Revenue from Operations decreased by 16.3% to ₹911.00 crore, compared to ₹1,088.00 crore in the same quarter of the previous year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell to ₹79.00 crore from ₹123.00 crore year-over-year, with the EBITDA margin dropping to 8.7% from 11.3%.
• Profit After Tax (PAT) declined by 50.5% to ₹29.00 crore, compared to ₹59.00 crore in the same quarter last year.
• Earnings Per Share (EPS) decreased to ₹0.75 from ₹1.50 in the corresponding quarter.

Operational Performance

Despite the challenging quarter, Texmaco Rail & Engineering demonstrated resilience in its operations:

• Delivered 1,815 freight cars during the quarter.
• Foundry Division volumes reached 8,667 MT.
• Maintained a robust order book of ₹7,053.00 crore as of June 30.

Segment-wise Performance

Management Commentary

Indrajit Mookerjee, Executive Director & Vice Chairman, commented on the results: "While the quarter saw a decline in revenue primarily due to short supply of wagon wheelsets from Indian Railways, these issues have since been resolved. Our strong order book and ongoing projects across rolling stock, traction, and international markets give us confidence in our growth trajectory."

Sudipta Mukherjee, Managing Director, added: "During the quarter, we secured significant order wins from Indian Railways for traction transformers, wagon manufacturing, and maintenance, reaffirming our leadership in freight rolling stock. On the international front, we secured one of the largest export contracts ever by an Indian Freight Rolling Stock company and a 20-year maintenance contract in Africa."

Strategic Developments

• Signed an MoU with Rail Vikas Nigam Limited (RVNL) to enhance capabilities in manufacturing, infrastructure, and technology-driven areas.
• Focused on expanding global footprint, particularly in Africa and Australia.
• Strengthened presence across the freight rolling stock value chain.

Outlook

Despite the temporary setback, Texmaco Rail & Engineering remains optimistic about its future prospects. The company's strong order book, strategic partnerships, and focus on both domestic and international markets position it well for recovery and growth in the coming quarters.

The management expects the resolution of supply chain issues and the ongoing expansion of India's rail infrastructure to drive opportunities for Texmaco in the near future.

About Texmaco Rail & Engineering Limited

Texmaco Rail & Engineering Limited is a key player in the railway and infrastructure sector, operating across three business segments: Freight Cars, Infra–Rail & Green Energy, and Infra–Electrical. With seven manufacturing facilities across India, the company specializes in rolling stock, loco components, hydro-mechanical equipment, rail infrastructure, bridges, and steel structures.

Texmaco Rail & Engineering Limited has announced a significant new order from Central Railway, bolstering its position in the rail infrastructure sector. The company has been awarded a contract valued at ₹73.12 crore for a comprehensive railway electrification project.

Order Details

The order, as disclosed by Texmaco Rail to the stock exchanges, encompasses the following scope:

• Design, Supply, Erection, Testing, and Commissioning of 110 KV/25KV AC Traction Substation
• Supply and Setup of Sectioning and Paralleling Post (SSP)
• Associated works related to the traction substation

This composite order also includes provisions for a 132/25 kV Traction Sub Station along with incoming supply arrangements. Notably, the project involves modifications to the 132 KV transmission line using High-Temperature Low-Sag (HTLS) conductors to provide incoming supply to the traction substation.

Project Timeline and Execution

Central Railway has stipulated a 24-month timeframe for the execution of this project. This timeline underscores the complexity and scale of the work involved in enhancing the railway's electrical infrastructure.

Strategic Implications

This order is significant for Texmaco Rail & Engineering Limited as it demonstrates the company's continued trust and partnership with Indian Railways. The project aligns with the ongoing efforts to modernize and electrify India's railway network, which is crucial for improving efficiency and reducing the carbon footprint of rail transportation.

Corporate Developments

In a separate announcement, Texmaco Rail informed the stock exchanges about a recent corporate restructuring move. The National Company Law Tribunal, Kolkata Bench, has sanctioned the Scheme of Amalgamation between Texmaco West Rail Limited (Transferor Company) and Texmaco Rail & Engineering Limited. This amalgamation is expected to streamline operations and potentially create synergies within the Texmaco group.

The successful securing of this order, coupled with the corporate restructuring, indicates Texmaco Rail's strategic moves to strengthen its market position and operational efficiency in the rail infrastructure sector.

Texmaco Rail & Engineering Limited continues to play a vital role in India's railway infrastructure development, with this latest order reinforcing its capabilities in delivering complex electrification projects.