Q2 2025 Texmaco Rail & Engineering Ltd Earnings Call Transcript
Key Points
- Texmaco Rail & Engineering Ltd (BOM:533326) completed the acquisition of Jindal Rail and Infra, now named Texmaco West Rail, enhancing market reach and establishing leadership in the freight car industry.
- The company reported strong financial performance in Q2 FY25 with revenue reaching INR1,346 crores and EBITDA of INR149 crores, reflecting an 11% margin.
- Operationally, Texmaco achieved a milestone in freight car sales, delivering 2,927 units in Q2, with 72% for Indian Railways and the rest for private and export orders.
- The order book stands at INR8,200 crores, with the freight car business accounting for 72%, positioning the company well for future expansion.
- Texmaco has been awarded the 'Three Star Export House' certification by the Government of India, affirming its role as a valued contributor to India's trade landscape.
- The integration of Jindal Rail, while smooth, involves complexities in aligning product portfolios and achieving cost efficiencies.
- The Infra and Green Energy segment continues to be a drag on profitability, with ongoing efforts to separate this wing from the core business.
- The company's net debt has increased to around INR800 crores due to the acquisition, raising concerns about future leverage.
- There is uncertainty regarding the timeline for executing the large order book in the infra electrical segment, which could impact revenue generation.
- The market for advanced wagons is still developing, with no official communication from the government on global tenders for modern wagons.
Ladies and gentlemen Good day and welcome to Texmaco Rail & Engineering Ltd Q2 FY25 Earning Conference Call hosted by ICICI Securities Ltd
(Operator Instructions)
I now hand the conference over to Miss Nidhi Shah from ICIC Securities. Thank you and over to you, ma'am.
Thank you on behalf of ICIC Securities I welcome you all to the Q2 FY25 Earning Conference Call of Texmaco Rail & Engineering Ltd.
Today we have with us from the management, Mr Indrajit Mukerji Ed and Vice Chairman, Mr Sudipta Mukherjee MD and Mr. Hemant Bhuwania the CFO without much delay, I would now like to hand over the conference to the management for their opening remarks over the with us.
Good morning to all of you. This is Indrajit Mukerji. I'm the executive director and the Vice Chairman of Texmaco Rail & Engineering. I'm delighted to welcome you all of you for Q2 H1
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