Texmaco Rail shares drop over 4% after weak Q1 earnings; check details

Texmaco Rail, in its quarterly results released on August 13, reported a 22% drop in revenue from operations quarter-on-quarter (QoQ) to ₹891.71 crore in Q1FY25 compared to ₹1,144.56 crore in the year-ago period. The company’s consolidated net profit also declined nearly 30% QoQ to ₹29.25 crore in Q1FY25 compared to ₹41.68 crore in Q4FY24.

However, the company’s revenue from operations increased nearly 36% in Q1FY25 from ₹656.82 crore in Q1FY24. Its net profit for the June quarter of FY25 also grew nearly 243% from ₹8.53 crore in Q1FY24.

The company’s standalone Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the June quarter of FY25 grew 62% to ₹97.1 crore against ₹59.9 crore in the corresponding quarter of the preceding fiscal. Sequentially, Texmaco Rail’s EBITDA declined more than 10% from ₹108.4 crore in the March quarter of FY24.

The railway wagon manufacturer’s standalone EBITDA margin for Q1FY25 grew by 180 basis points (bps) to 10.9% from 9.1% in Q1FY24. In Q1FY25, the company’s EBITDA margin grew 140 bps QoQ from 9.5% in Q4FY24. The company’s standalone Profit-After-Tax (PAT) margin improved by 230 bps to 4.5% in Q1FY25 compared to 2.2% in Q1FY24. Sequentially, the company’s PAT margin improved 40 bps from 4.1% in the March quarter of FY24.

Texmaco Rail and Engineering Ltd is an engineering and infrastructure company primarily engaged in manufacturing railway wagons, coaches and locomotives. The company also provides other related services.

Texmaco Rail and Engineering shares have rallied over 110% in the last one year and more than 43% so far this year. In the last six months, the stock has gained nearly 27%.

Shares of Texmaco Rail & Engineering were trading at ₹245.9 apiece, down 4%, on the NSE at 2:46 pm.