Texmaco Rail & Engineering expects 30-35% growth on order book

25 May 2023 CW Team

Soon after a significant production ramp-up in the January-March quarter, Texmaco Rail & Engineering, is planning another round of growth in the current financial year targeting at least 25 percent rise in production. The company, which makes coaches, wagons, and signalling systems for railways, is a leading player in the engineering and infrastructure sector. Hemant Bhuwania, the Chief Financial Officer (CFO) of the company, revealed promising figures for the company's production and order book.

During the fourth quarter of the previous fiscal year, the company experienced a notable ramp-up in production, registering a remarkable 40 percent increase. This surge in production has served as a positive indicator of the company's performance and sets the stage for further growth in the coming months.

Bhuwania shared the projections for the first half of FY24. The company expects to achieve a production ramp-up of 25-30 percent during this period. This anticipated growth is a testament to the company's commitment to meeting market demands and capitalising on emerging opportunities.

“In Q4FY23, we did around 1,400 wagons, whereas, in Q3, we were close to 1,000 wagons. So, there was a ramp-up of around 40 percent during Q4FY23. So, from 1,400 onwards we expect a further ramp-up of around 25-30 percent in the first half of the current financial year, and in H2 of the current financial year (second half of FY24), we expect another ramp-up of around 25-30 percent,” said Bhuwania.

Talking about the order book, he said that the heavy engineering division boasts an impressive order book worth Rs 67 billion. This substantial backlog indicates robust demand for the company's engineering solutions and demonstrates its strong market presence.

Additionally, the company's engineering, procurement, and construction (EPC) division holds an order book valued at Rs 15 billion. This highlights the diversified portfolio of Texmaco Rail and its ability to secure contracts in various sectors, further strengthening its market position.