Texmaco Rail -; Engineering stock jumps ~2% despite lackluster Q3 numbers

9 Feb 2022 , 09:17 AM

Texmaco Rail & Engineering Limited, a “ADVENTZ” Group Company has reported its Q3 working Results of FY 21-22 approved at its Board Meeting held on Febuary 07, 2022.

The Gross Revenue for the quarter ended December 31, 2021 stood at Rs479.72cr, EBIDT A at Rs45.13cr, Profit before Tax (PBT) at Rs10.71cr and after a provision of Rs9.13cr for Defened Tax Liability, a net profit at Rs1.58cr as against Gross Revenue of Rs463.01cr, EBIDTA of Rs.53.66cr, PBT of Rs17.87cr and net profit of Rs18.08cr respectively in the corresponding quarter of FY 20-21.

For the nine months ended December 31, 2021 the Gross Revenue stood at Rs1196.08cr, EBIDTA at Rs130.74cr, Profit before Tax (PBT) at Rs26.51cr and net profit at Rs12.14cr as againstcross Revenue of Rs1100.99cr, EBIDTA of Rs85.82cr, Loss Before Tax of Rs20.52cr and net loss of Rs7.77cr respectively in the corresponding quarter of FY 20-21.

While the Company was coming out of the Covid related disruptions in the firsr 2 Quarters, due to a sudden surge of 3rd wave of Covid which seriously impacted the large part of the Country with positive rate on days going as high as >50% and restrictions imposed by the State Govemment from time to time, intemittent disruptions in operational activities could not be avoided. The situation however is fast easing out and Govemment has eased the restrictions with lot of relaxations leading to expscted normal operations in Q4 ofthe financial year.

The Railway Budget as announced this year is promising with the Government’s revised capital expenditure outlay of Rs2,45 Lakh cr for Railway infrastructure and development. The Govemrnent’s plan to pdoritise the multi-modal connectivity between mass urban transport and Rail network, as part of “PM Cati Shakti” scheme would open new opportunities both in Railway manufactu ng & service sectors. This would certainly boost the prospects of the Company, which is present in most of the Rail related segments.

For the Quarter, the performance of Heavy Engineering Division was impacted primarily on account ofcontinued unprecedented hike in steel price, the main raw material for the Division, and resultant uncertainties. The Division reported a gross revenue of approx. Rs203cr during the quarter. The Division is expected to be benefitted with the Govemment’s thrust on Rail infrastructure and major Capex in the Rail segmenl as announced in the recent Budget. The Govemment’s focused approach on completion of freight corridor works and upgrading the Railway will augur well.

The consolidated order book value of the company including its subsidiaries / JVs is applox Rs2800cr.

At around 9:17 AM, Texmaco Rail & Engineering was trading at Rs42.60 per piece higher by 1.79% on Sensex.