Texmaco Rail & Engineering Received an Order Worth ₹187 Crore

Texmaco Rail & Engineering Ltd announced today, on Tuesday, December 17, 2024, that it has secured a domestic order valued at approximately ₹187.41 crore. The order, awarded by Chhattisgarh State Power Transmission Company Limited (CSPTCL), pertains to the construction of nine 132KV transmission lines on a turnkey basis. The total route length of these lines is around 291 kilometres, with the project expected to be completed within 15 months.

Company Overview 

Texmaco Rail & Engineering, a part of the Adventz Group, is an infrastructure engineering company with a diversified portfolio. Its operations include the manufacturing of rolling stock, hydro-mechanical equipment, steel castings, and construction of rail EPC projects, bridges, and steel structures. Established in 1998 after the demerger of Texmaco Limited, the company has expanded its focus beyond heavy engineering to include power and infrastructure sectors.

Financial Performance 

Texmaco Rail reported a 68% rise in revenue in Q2 FY25, increasing from ₹810.41 crore to ₹1,362.35 crore. The company’s net profit surged 195% YoY to ₹74.1 crore during the same period. As of Tuesday, Texmaco Rail’s market capitalisation stands at approximately ₹9,285.62 crore, categorising it under the BSE SmallCap index.

Market Reaction 

Following the announcement, Texmaco Rail’s stock rose by up to 4.60% during intraday trading, reaching a high of ₹239.65 per share on the BSE. As of 12:20 PM, the stock was trading 2.02% higher at ₹233.80. The company’s stock has shown movement this year, delivering returns of over 32% and rising by nearly 35% in 2024 alone.

In conclusion, the ₹187 crore order marks Texmaco Rail’s expansion into the power transmission segment, showcasing its ability to secure large-scale projects beyond its traditional railway operations. The project’s execution over 15 months will add to the company’s growing order book and diversification.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.