Texmaco Rail Posts Nearly Two-Fold Jump in Q1 FY25 Profit at ₹40.2 Crore

Texmaco Rail & Engineering reported a significant increase in standalone net profit for the quarter ending June 30, 2024, with a nearly two-fold rise to ₹40.2 crore, driven by strong revenue growth. This compares to a PAT of ₹14.6 crore in the same period last year.

The company's revenue from operations for Q1 FY25 surged by 35.8% to ₹891.7 crore, up from ₹656.8 crore in Q1 FY24. Indrajit Mookerjee, Executive Director and Vice Chairman of Texmaco, stated, “Texmaco achieved its highest Q1 revenue from operations at ₹891.7 crore, marking a 35.8% growth. From a profitability standpoint, EBITDA for the quarter was ₹97.1 crore, reflecting a 62% YoY growth and a margin of 10.9%, which also represents a significant milestone.”

In July 2024, Texmaco announced its acquisition of Jindal Rail & Infrastructure for ₹615 crore. Mookerjee noted, "This acquisition, with an FY24 EV/EBITDA multiple of 8.1x, is set to close soon and will considerably strengthen Texmaco’s capabilities and market presence, paving the way for sustained growth and innovation."

Sudipta Mukherjee, Managing Director, highlighted the company's performance during the quarter, stating, "Texmaco sold a total of 1,967 freight cars, with 1,655, or approximately 84%, delivered to Indian Railways and the rest to Indian private and export markets. Our steel foundries in Raipur and Belgharia produced 9,474 MT of castings and other railway components, marking a 4.4% increase in casting sales compared to Q1 FY24."

Texmaco’s consolidated order book for Q1 FY25 stands at ₹7,459.7 crore, with 60% contributed by the freight car business, 88% of which is from Indian Railways. Mukherjee added, "The medium-term outlook for the railway industry is supported by the government's National Rail Plan Vision 2030 and private sector growth aligned with the nation’s economic prosperity."