Texmaco Rail & Engineering Reports Strong Q2FY24 Results; Shares Rally 11.69%

Texmaco Rail & Engineering Reports Strong Q2FY24 Results; Shares Rally 11.69%

VoM News Desk | October 16, 2023 | 11:46 AM IST | Breaking News | Follow on Google News

Texmaco Rail & Engineering Reports Strong Q2FY24 Results; Shares Rally 11.69%

Texmaco Rail & Engineering Reports Strong Q2FY24 Results; Shares Rally 11.69%

Texmaco Rail & Engineering’s shares surged by 11.69% in early trading on Monday, reaching ₹148.95 apiece, following the company’s impressive performance in the quarter ending in September. By 10:15 AM, the stock was trading with a gain of 6.6% at ₹142.20.

Key points from Texmaco Rail & Engineering’s Q2FY24 results:

• The company reported a consolidated net profit of ₹25 crore, reflecting a 66% increase compared to the net profit of ₹15 crore recorded in the same period last year. There was also a 22.52% sequential increase in net profit.
• Revenue from operations for the second quarter of FY24 saw a robust 66.32% growth, reaching ₹805 crore compared to ₹484 crore in Q2FY23.
• The company reported an EBITDA of ₹76 crore, indicating a YoY increase of 76.74%. While the EBITDA margin remained steady on a YoY basis at 9%, it showed a 600 basis point improvement sequentially.
• All segments of the company, including heavy engineering and steel foundry, exhibited strong revenue growth during the quarter.

In terms of H1FY24 performance, the company achieved:

• Revenue of ₹1,462 crore, marking an 86% surge compared to ₹783 crore in the same period of the previous fiscal.
• A consolidated net profit of ₹37.28 crore, a significant improvement from the net loss of ₹5.22 crore in H1FY23.

Texmaco Rail & Engineering is engaged in the manufacturing of rolling stock, bridges, steel castings, rail EPC, and other steel structures. The company is well-positioned to benefit from the highest-ever capital outlay by Indian Railways.

Furthermore, the company’s board of directors recently approved raising funds of up to ₹1,000 crores through the issuance of equity shares via qualified institutions placement (QIP) and also the issuance of equity shares to the promoters through a preferential issue, for an amount not exceeding ₹50 crore.

Over the past year, Texmaco Rail & Engineering shares have delivered a remarkable return, surging from ₹48.50 apiece to the current value of ₹142.50 apiece, translating into a gain of 194%. This marks the stock’s third consecutive year of strong performance and is its second-best yearly performance since its listing in 2011.

Please note that the performance of Texmaco Rail & Engineering reflects its robust financial performance and the positive sentiment surrounding the Indian rail and engineering sectors.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.