Texmaco Rail Q2 Results: Firm posts 196% jump in PAT at ₹74 crore, EBITDA zooms 82%; shares surge 6%

Reacting to the Q2 results, shares of the company rose as much as 5.79% to ₹209.05 apiece on the BSE.

The company had posted revenue of ₹805 crore in the year-ago period, as per the company's earnings release. 

Its EBITDA, or earnings before interest, taxes, depreciation, and amortisation, came in at ₹149 crore, up 81.7% against ₹82 crore logged in the September 2023 quarter. 

EBITDA margin increased to 11% from 10.1% in Q2 FY24. Profit after tax (PAT) for the quarter stood at 74 crore, up 196% YoY against ₹25 crore in the corresponding quarter of the previous fiscal. 

PAT margin increased to 5.5% from 3.1% in the year-ago period. 

Earnings per share (EPS) stood at ₹1.82 against ₹0.76 in Q2 FY24.

The company also said it has successfully completed the acquisition of Jindal Rail Infrastructure Ltd. (JRIL) on September 3, 2024, and the company has now been renamed Texmaco West Rail Limited. It was acquired for ₹614 crore, and the transaction represented an FY24 EV/EBITDA multiple of 8.1x. This acquisition positions Texmaco as a market leader in the freight car industry.

Commenting on the results, Sudipta Mukherjee, Managing Director, said, “During the first half of the year, Texmaco has achieved the highest ever freight car sales in its history, having sold 5,301 freight cars. With the acquisition of Jindal Rail & Infrastructure Ltd., we have attained a leadership position in the freight car manufacturing industry. During Q2 FY24, we delivered 2,927 freight cars, with 72% to Indian Railways and 28% to private customers and export markets."

The MD added, "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. Our management team is ready to embrace the challenges ahead and is confident in its capabilities to convert them into opportunities for sustainable growth.”

Texmaco operates through three business segments: freight car manufacturing, steel foundry, and component systems; infrastructure (rail & green energy); and infrastructure – Electrical.

The company has seven manufacturing facilities, with five located in West Bengal (Agarpara, Belgharia [2], Sodepur, and Panihati), one in Vadodara, Gujarat, and one in Raipur, Chhattisgarh.