Texmaco Rail and Engineering posted a weak set of earnings in the fourth quarter of FY17 as revenues slipped due to weak offtake of wagons by Indian Railways, said Executive Director AK Vijay in an interview with CNBC-TV18.
However, wagons remain their core business and they expect a bounce back in that segment going forward, said Vijay, adding that segments other than wagons are looking strong.
The company is also focusing on segments like Rail EPC and Bridges where the demand is strong, he said.
The company is seeing good traction for the locomotive shells market and the volumes in this business will see growth in FY18 and FY19, he said.
The company also stands to gain from railways order for refurbishment, said Vijay.
Total income in Q4FY17 was down -25 percent at Rs 285.9 crore versus Rs 380.6 crore for the same quarter last fiscal.
EBITDA was too down – 54 percent at Rs 13.1crore versus Rs 28.7 crore Q4FY16. Margins in Q4 came in at 4.6 percent versus 7.5 percent of same quarter earlier fiscal.
For FY17 the revenues were down 17.2 percent and margins came in at 5.5 percent versus 4.3 percent in FY16.
For full interview, watch video
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