Texmaco Rail Q2 Results: Firm posts 196% jump in PAT at ₹74 crore, EBITDA zooms 82%; shares surge 6%

Mon Oct 28 03:59:46 UTC 2024: ## Texmaco Reports Strong Q2 Earnings, Bolstered by Jindal Rail Acquisition

**Kolkata, India** – Texmaco Rail & Engineering Ltd. announced strong financial results for the second quarter of fiscal year 2024, driven by increased freight car sales and the recent acquisition of Jindal Rail Infrastructure Ltd. (JRIL).

The company’s revenue for the quarter reached ₹1,350 crore, a significant jump from ₹805 crore in the corresponding period last year. EBITDA (earnings before interest, taxes, depreciation, and amortization) surged to ₹149 crore, representing an 81.7% increase from ₹82 crore in Q2 FY24. This positive performance was also reflected in the EBITDA margin, which rose to 11% from 10.1% in the previous year.

Texmaco’s bottom line also witnessed strong growth. Profit after tax (PAT) for the quarter reached ₹74 crore, a remarkable 196% year-on-year increase compared to ₹25 crore in Q2 FY24. This led to a boost in the PAT margin, which climbed to 5.5% from 3.1% in the year-ago period. Earnings per share (EPS) also saw a notable rise, reaching ₹1.82 against ₹0.76 in the previous year.

The company’s acquisition of JRIL in September 2024, now renamed Texmaco West Rail Limited, has further strengthened its position in the freight car industry. The ₹614 crore acquisition, representing an FY24 EV/EBITDA multiple of 8.1x, has propelled Texmaco to the forefront of the market.

Texmaco’s Managing Director, Sudipta Mukherjee, highlighted the company’s record freight car sales, reaching 5,301 in the first half of the year. He also expressed confidence in the company’s ability to capitalize on the growing demand from both the Indian Railways and private customers as well as the export market.

Texmaco operates across three business segments: freight car manufacturing, steel foundry, and component systems; infrastructure (rail & green energy); and infrastructure – Electrical. The company has seven manufacturing facilities, with five located in West Bengal and one each in Vadodara, Gujarat, and Raipur, Chhattisgarh.