Texmaco Rail and Engineering zooms 13% on solid Q2 results

So far this year, the stock of this smallcap rail component manufacturer soared 137 percent as against 8 percent rise in the Sensex benchmark

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Texmaco Rail and Engineering jumped 13 percent to the day’s high of Rs 150 on BSE on October 16 after the company reported 70 percent year-on-year (YoY) rise in consolidated net profit to Rs 20 crore in the September quarter of the current financial year.

This year, the smallcap rail component manufacturer has gained 137 percent against an 8 percent rise in the benchmark Sensex. The stock touched a 52-week high of Rs 163 per on September 11, 2023.

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In the September quarter, Texmaco Rail’s consolidated total income rose 64 percent YoY to Rs 810 crore. Consolidated revenue from operations surged 66 percent YoY to Rs 805 crore.

Segment-wise, the heavy engineering division contributed the most to company’s overall revenues. Gross revenue from the segment jumped over three-fold to Rs 616 crore in Q2FY24 from Rs 192 crore in the year-ago period.

The steel foundry division’s gross revenue jumped 64 percent YoY to Rs 202 crore in Q2FY24.

The infrastructure segment – rail & green energy division and electrical division – both reported negative gross revenue performance. While the rail & green energy segment reported a 26 percent YoY decline in gross revenue, the electrical segment slipped 39 percent.

ALSO READ: Hindalco, Texmaco team up to produce aluminium rail wagons, coaches

Texmaco Rail and Engineering operates two business segments – the heavy engineering division and the foundry division. It manufactures a range of products, including railway freight cars, pressure vessels and agricultural machinery.

In the September-ended quarter, foreign institutional investors (FIIs) increased their holding in the company to 2.3 percent from 2.1 percent in the previous quarter 2023, shareholding pattern data shows.

Domestic institutional investors, however, trimmed their holdings to 6.1 percent from 6.7 percent in the June quarter.

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