Texmaco Rail Reports 67% Revenue Surge and 201% Profit Growth in Q2 FY25 Earnings

Texmaco Rail & Engineering Limited announced its unaudited financial results for the quarter ending September 30, 2024. 

In a landmark achievement, Texmaco successfully completed the acquisition of Jindal Rail Infrastructure Ltd (JRIL) on September 3, 2024. The acquired entity has since been rebranded as Texmaco West Rail Limited, reinforcing Texmaco’s standing as a market leader in the Indian freight car manufacturing sector. This acquisition, completed for a consideration of ₹614 crore, translates to an FY24 EV/EBITDA multiple of 8.1x, positioning the company for greater market penetration.

Financial Highlights

The company reported revenue from operations of ₹1,346 crore, a 67.2% year-on-year (YoY) increase from ₹805 crore in Q2 FY24. This quarter’s revenue also marked a 23.7% sequential growth from Q1 FY25, which saw revenue of ₹1,088 crore. For the half-year period ending September 2024, Texmaco’s revenue reached ₹2,434 crore, a notable 66.5% rise from ₹1,462 crore in H1 FY24.

EBITDA for Q2 FY25 was at ₹149 crore, reflecting an 82.2% YoY increase from ₹82 crore in Q2 FY24 and a 20.5% quarter-over-quarter (QoQ) rise from Q1 FY25’s EBITDA of ₹123 crore. The company’s H1 FY25 EBITDA was ₹272 crore, up 96.4% from ₹139 crore in H1 FY24, maintaining an EBITDA margin of 11.2%.

Texmaco also recorded a growth in profit after tax (PAT), with Q2 FY25 PAT reaching ₹74 crore, marking a 201.2% YoY surge from ₹25 crore in Q2 FY24 and a 25.1% QoQ increase from Q1 FY25’s PAT of ₹59 crore. For H1 FY25, Texmaco’s PAT stood at ₹133 crore, up 257.6% from ₹37 crore in H1 FY24, maintaining a PAT margin of 5.5%.

Management Commentary  

Indrajit Mookerjee, Executive Director and Vice Chairman of Texmaco stated, “We are delighted to have successfully completed the acquisition of Jindal Rail & Infrastructure Ltd during the first half of the year. The acquisition has resulted in us increasing revenues by a factor of 1.67x representing a transformation in Texmaco’s market presence in India and internationally. With the first 100-day integration plan well underway, the company has been renamed as Texmaco West Rail Limited and the synergy realisation is in line with management expectations.” 

He further added, “This acquisition represents the largest deal in India’s rolling stock industry, marking a strategic milestone for the Company. Texmaco West Rail provides greater customer reach in the private commodity-specific wagons market and increases our private sector revenue contribution from 12% to 28%. We look forward to leveraging the combined potential of both companies and creating new opportunities for sustainable growth and innovation.”

Sudipta Mukherjee, Managing Director of Texmaco, 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. Our steel foundries in Raipur and Belgharia had combined sales of 11,156 metric tonnes of castings and other railway components, marking a 3.5% increase YoY.”

On October 28, 2024, Texmaco share price opened at ₹202.77, touching the day’s high at ₹208.90, as of 10:05 AM on the NSE.

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