Texmaco Rail & Engineering has reported a whopping jump in consolidated net profit for the quarter ended September 2024 at Rs 74 crore largely on the back of higher revenues.
The company had reported PAT of Rs 25 crore in the corresponding quarter last fiscal.
Its consolidated revenue for the July-September 2024 quarter stood at Rs 1,346 crore as compared to Rs 805 crore a year-ago, registering a growth of 67.2 per cent.
During the first half of the year Texmaco reported consolidated revenue from operations of Rs 2,434 crore. In terms of profitability, Texmaco reported EBITDA at Rs 272 crore and PAT at Rs 133 crore.
On September 3, 2024, Texmaco, the manufacturer of freight wagons, completed the acquisition of Jindal Rail Infrastructure (JRIL) and has renamed it to Texmaco West Rail. JRIL was acquired for Rs 614 crore, positioning Texmaco as a market leader in the freight car industry.
“The acquisition has resulted in us increasing revenues by a factor of 1.67x representing a transformation in Texmaco’s market presence in India and internationally. With the first 100-day integration plan well underway, the company has been renamed as Texmaco West Rail and the synergy realisation is in line with management expectations. This acquisition represents the largest deal in India’s rolling stock industry, marking a strategic milestone for the company,” Indrajit Mookerjee, Executive Director and Vice Chairman said
He noted that since Texmaco West Rail provides greater customer reach in the private commodity specific wagons market, it increases its private sector revenue contribution from 12 per cent to 28 per cent.
Commenting on the financial performance, Sudipta Mukherjee, Managing Director said that the company has achieved the highest ever freight car sales in its history, having sold 5,301 freight cars during the first half of the year.
“With the acquisition of Jindal Rail & Infrastructure, we have attained leadership position in the freight car manufacturing industry. During Q2 FY2024, we delivered 2,927 freight cars with 72 per cent to Indian Railways and 28 per to private customers and export markets. Our steel foundries in Raipur and Belgharia had combined sales of 11,156 metric tonnes of castings and other railway components, marking a 3.5 per cent increase YoY. As a market leader in the steel foundry segment, the growth in foundry reinforces the resilience of the Texmaco supply chain for critical railway components,” Mukherjee said.
In October 2024, Texmaco was recognised as a “Three Star Export House” under the Government of India’s Foreign Trade Policy, 2023. This certification strengthens its position as a contributor to India’s global trade policies.
The rail freight industry is poised for significant growth in the upcoming years, with freight volumes by rail projected to increase from 27 per cent to 45 per cent by 2030, as outlined in the National Rail Plan Vision 2030.
“Our sector plays a crucial role in supporting the government to achieve its goal of 3,000 MT of freight loading whilst also creating valuable opportunities for Texmaco. As Indian Railways expands its fleet to meet these goals, we are well positioned to contribute with our advanced manufacturing capabilities and integrated solutions. Looking ahead, we remain focused on leveraging these government initiatives while also addressing growing demand from private customers and export markets,” Mukherjee added.
