After Rs 1,374-crore deal, Texmaco Rail hopes to bag contract for 20,000 wagons

Earlier today, shares of Texmaco Rail and Engineering surged 10 percent to hit a 52-week high, and this year alone, the company's stock is just in line with all the other railway companies.

After winning a Rs 1,374.41-crore order from the Ministry of Railways, Texmaco Rail Executive Director and Vice-President Indrajit Mookerjee said that the company is expecting more private orders and another government order of 20,000 wagons in the future.

Speaking to CNBC-TV18 on December 15, Mookerjee said the latest orders are expected to be delivered from mid-2024 and completed by December 2025.

Earlier in the day, shares of Texmaco Rail and Engineering surged 10 percent to hit a 52-week high, and this year alone, the company's stock is just in line with all the other railway companies.

"Today, we have an order book of 50,000 wagons from the Indian Railways and 2,000 wagons from private institutions. Though the general purpose scheme as been put on hold for the time being, there is already a pending order of 4,000 wagons that are in the pipeline. So, even if you take the reasonably good success factor of 70 to 80 percent coming through, there is a huge demand, " he said.

In October, the company’s joint venture with SS Fabricators and Manufacturers bagged an order valued at Rs 179.89 crore from SJVN Arun-3 Power Development Company Limited, which is building a 900MW run-of-the-river hydropower project in Nepal.

Texmaco Rail, which is a part of the KK Birla Group, is an engineering and infrastructure company primarily engaged in the manufacturing of rolling stock, including wagons, hydro-mechanical equipment, coaches, loco shells and parts, hydro mechanical equipment, and other equipment.

Last month, the company raised Rs 750 crore through a qualified institutional placement (QIP) of equity shares. The funds are intended to be used for repaying loans, financing capital expenditures, and general corporate purposes.

With a hit ratio of 30 percent, according to Mookerjee, the company is producing more and constantly debottlenecking its plant in order to prepare themselves for the timeline of their next pitch and delivery.