During Monday’s trading session, the shares of a leading manufacturer of freight wagons and provider of railway infrastructure in India surged 5.8 percent to Rs. 209.05 on BSE, after reporting Q2 FY25 financial results with net profit growth of 25.4 percent QoQ and 201 percent YoY.
With a market cap of Rs. 8,239 crores, at 02:42 p.m., the shares of Texmaco Rail & Engineering Limited were trading in the green at Rs. 206.25, up by nearly 4.4 percent, compared to its previous closing price of Rs. 197.6.
What’s the news:
The fluctuations in the share prices were observed after Texmaco Rail & Engineering Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Friday post-market hours.
For Q2 FY25, Texmaco Rail reported consolidated revenue from operations of Rs. 1,346 crores, reflecting a growth of around 23.7 percent QoQ from Rs. 1,088 crores in Q1 FY25, as well as a rise of about 67.2 percent YoY from Rs. 805 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 74 crores, representing a significant increase of around 25.4 percent QoQ from Rs. 59 crores in Q1 FY25, as well as a year-on-year increase of nearly 201 percent from Rs. 25 crores in Q2 FY24.
EBITDA for Q2 FY25 reached Rs. 149 crores, representing an increase of around 82.2 percent YoY from Rs. 82 cores in Q2 FY24, with an EBITDA Margin of 11 percent from 10.1 percent, during the same period.
The Earnings Per Share (EPS) of Texmaco Rail increased to Rs. 1.82 in Q2 FY25, up from Rs. 0.76 in Q2 FY24.
Segment Performance:
In Q2 FY25, the company reported revenue from operations of Rs. 1,346 crores, with the Freight Car Division segment being the largest contributor at 87 percent. The Infra-Rail & Green Energy segment accounted for 7 percent, while the Infra-Electrical segment contributed the remaining 6 percent.
The total order book of Texmaco Rail reached at Rs. 8,194 crores, with the Freight Car Division segment contributing 59.4 percent (comprising 72 percent from Indian Railways and 28 percent from the private sector) in the order book.
Further, the Infra-Electrical segment contributed 21.7 percent to the total order book, the Infra-Rail & Green Energy segment accounted for 10.4 percent, and the Steel Foundry segment contributed 2.3 percent. The Components segment added 0.2 percent, while the remaining 6 percent came from other segments.
Additional Information:
On 3rd September 2024, Texmaco completed the acquisition of Jindal Rail Infrastructure Limited (JRIL), and the company has now been renamed to Texmaco West Rail Limited.
The acquisition was executed for a consideration of Rs. 614 crores, corresponding to an FY24 EV/EBITDA multiple of 8.1x. This strategic acquisition enhances Texmaco’s position as a market leader in the freight car industry.
The acquisition has led to a revenue increase of 1.67x, signifying a transformation in Texmaco’s market presence both in India and internationally. This deal represents the largest transaction in India’s rolling stock industry, marking a strategic milestone for the company.
Texmaco West Rail enhances customer reach in the private commodity-specific wagons market and increases the company’s private sector revenue contribution from 12% to 28%.
Stock Performance:
The stock has delivered positive returns of nearly 68.4 percent in one year, as well as around 12 percent returns in the last six months. So far in 2024, the shares of Texmaco Rail & Engineering have given positive returns of about 18.5 percent.
About the company:
Incorporated in 1998, Texmaco Rail & Engineering Limited operates through three business segments, Freight Car (freight car manufacturing, steel foundry and components systems), Infra – Rail & Green Energy and Infra – Electrical. It is engaged in the business of manufacturing, selling and providing service for Rail and Rail related products.
Written by Shivani Singh
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