Texmaco Rail & Engineering Ltd (NSE: TEXRAIL): Some profit bookings are being seen in the stock market on Wednesday. Meanwhile, stock-specific action continues.
The earning season i.e. the time of corporate results in the market is over and now companies are trying to improve the results of the second quarter of FY 2024-25.
The second quarter of Texmaco Rail & Engineering Ltd can be much better. The company is continuously getting orders and has also started entering new markets. The company has acquired Jindal Rail Infra Company to expand its scope in the Wagon Market.
Texmaco Rail & Engineering Ltd is a leading manufacturer of freight wagons in India and a service provider in railway infrastructure.
On the 25th of July 2024, the company was informed that it has signed binding agreements with Jindal Rail & Infrastructure Limited and its current security holder, namely JITF Urban Infrastructure Services Limited as well as Siddheshwari Tradex Private Limited.
The agreement aims at the purchase of 100% capital shares of JRIL on an entirely dispersed basis.
JRIL is renowned for its expertise in the field of research and development as well as designing and manufacturing of specific commodities freight wagons.
Through this acquisition, Texmaco Rail & Engineering Ltd has strengthened its global product range and strengthened its position as the market’s top player in the design process.
With the rising demand for new rolling stocks in the commercial sector, this acquisition is a significant move for Texmaco Rail & Engineering Ltd to offer a complete single-stop solution.
Texmaco Rail & Engineering Ltd’s share is looking flat to positive on Wednesday and is trading at Rs 236.73. The current market cap of this company stands at 9,501.33 crore rupees.
Apart from this, the share has given an impressive return of over 380 percent in the last 2 years.
In the quarterly report that was reported in Q1 FY25 Texmaco Rail & Engineering Ltd recorded revenues of Rs 892 crore.
Operating profit was the sum of Rs 70 crore. Net profit in Q1 FY25 was 40 crore as opposed to 15 crore.
When looking at the overall performance The company reported an income of 353 crore rupees during FY24. Operating profit for FY24 was 262 crore, with net profits at 113 crore rupees in comparison to a net profit of Rs 20 crore for FY23.
Quick Fact
Texmaco Rail & Engineering
| Company name | Texmaco Rail & Engineering |
|---|---|
| Business | Freight wagons, railway infrastructure |
| Market | India |
| Recent Acquisition | Jindal Rail Infra Company |
| Acquisition Purpose | Expand wagon market, enhance design capabilities |
| Q1 FY25 Revenue | ₹892 crore |
| Q1 FY25 Operating Profit | ₹70 crore |
| Q1 FY25 Net Profit | ₹40 crore |
| Previous Q1 FY Net Profit | ₹15 crore |
| FY24 Revenue | ₹353 crore |
| FY24 Operating Profit | ₹262 crore |
| FY24 Net Profit | ₹113 crore |
| FY23 Net Profit | ₹20 crore |
| 2-Year Return | Over 380% |
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