Texmaco to gain considerably from rise in wagon orders

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » RELATED NEWS History shows railway-related stocks shed gains post budget Texmaco surges on back of 6000-wagon order from Railways Expect orders of Rs 500-600cr in FY10: Kalindee Rail Cos catering to railways cheer Lalu's Budget Two populist measures save Lalu a dull day ALSO READ See latest News about Texmaco Infra See previous management interviews See what other Experts & Brokerages are saying about Texmaco Infra Texmaco Infra BSE | NSE 25/05/12 Are Mutual Funds betting on Texmaco Infra?

Ramesh Maheshwari, President, Texmaco , expects to gain considerably from the increase in wagon orders announced in today's Railway Budget. "The quantum of the wagon orders is going to jump from 6,600 to 15,000. We being the largest recipients of this order, will tend to benefit tremendously." The company bagged a 6,000-wagon order from Indian railways yesterday.

 

Here is a verbatim transcript of the exclusive interview with Ramesh Maheshwari on CNBC-TV18. Also see the accompanying video.

 

Q: What are the pending orders you have from Railways in terms of wagons? What's the size of that order especially what you got in the last budget?

 

A: As of today, we have got nearly 6,000 wagon orders and expect a lot more. From the announcement of the rail ministry and the interim budget today, it is quite clear that the industry is going to reap a very rich harvest. The quantum of the wagon orders is going to jump from 6,600 to 15,000 and we being the largest recipients of this order, about 35% of the cake, will tend to benefit tremendously.

 

Q: So, you would get about Rs 5,000 crore worth of orders?

 

A: I would not comment on the value because it is different on each wagon depending on the construction material used. I would only say that from the point of the workload and outrun in production, I can see in next few years absolutely a clear road map for Texmaco to keep going forward.

 

Q: What's your order book now in terms of rupees and what kind of a rate of growth can you see very distinctly in terms of visibility?

 

A: Value-wise our orders are close to about Rs 700-800 crore and this keeps changing depending on our outturn and the depression of orders. So, orders are no problem just now.

 

Q: What is the margin on the orders and how much do they translate into a bottomline?

 

A: You don't want me to tell the customers that the margins are too good. I would say the margins are reasonable.