Texmaco Rail & Engineering Q2 Results: Profit Grows Threefold, Margin Expands
Revenue rose 67% to Rs 1,346 crore in the quarter ended September.
(Image used for representational purpose. Source: Envato)
Texmaco Rail & Engineering Ltd.'s consolidated net profit surged threefold in the second quarter of the current financial year, according to an exchange filing on Friday.
The firm posted a profit of Rs 74.1 crore for the quarter ended Sept. 30 in comparison to Rs 24.6 crore in the same quarter last year. Revenue rose 67% to Rs 1,346 crore from Rs 805 crore a year ago.
The earnings before interest, taxes, depreciation, and amortisation, rose 74% to Rs 132 crore from Rs 76.2 crore. The Ebitda margin expanded to 9.8% from 9.5% in the same period last year.
The firm acquired a complete stake in Jindal Rail and Infrastructure Ltd., making it a wholly owned subsidiary of the company on Sept 3, 2024.
Both the parties have completed all the conditions required for acquiring all of the rights, title and interest in the securities of JRIL from its existing shareholders, which are JITF Urban Infrastructure Services Ltd. and Siddeshwari Tradex Pvt. respectively. This was done on a fully diluted basis.
JRIL is reputed for the search, design, and manufacture of specialised freight wagons. This acquisition is expected to help Texmaco boost its international product range and enhance its innovative edge, particularly in design.
The share price of Texmaco closed 2.6% lower at Rs 197.68 apiece on the NSE, compared to a 0.9% decline in the benchmark Nifty 50. The stock has risen 15.5% on a year-to-date basis and 68.17% over the past 12 months.
Four analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential upside of 70.3%.
