Texmaco Rail & Engineering Ltd (BOM:533326) Q4 2025 Earnings Call Highlights: Robust ...
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Texmaco Rail & Engineering Ltd (BOM:533326) reported a significant revenue growth of 48.5% year-on-year, reaching INR 5,107 crore.
The company's EBITDA increased by 57.6% year-on-year, with a margin of 10.3%.
Texmaco Rail & Engineering Ltd (BOM:533326) established strategic global partnerships with European and US-based firms, enhancing its international market presence.
The company delivered 10,612 freight cars in the year, marking a 51% increase from the previous year.
Care Ratings upgraded the company's long-term and short-term facilities, reflecting an enhanced credit profile and increased lender confidence.
There was a noted decline in wagon production in the fourth quarter, attributed to supply chain issues, particularly with wheel supply.
Margins in the fourth quarter were lower than expected, partly due to one-off expenses and provisions.
The infra business segment did not contribute significantly to profits, remaining similar to the previous year's performance.
The company's asset turnover ratio declined due to the acquisition of Texmaco West, impacting overall efficiency.
Cash flow from operations has been a concern, with significant discrepancies between EBITDA and cash generation over the past five years.
Warning! GuruFocus has detected 4 Warning Signs with BOM:533326.
Q: Why is there a decline in wagon production? Has there been any problem with wheel supply? A: Sudha Mukherji, Managing Director, explained that wagon production should not be evaluated on a quarter-to-quarter basis due to varying supply chains and lead times. The production numbers should be viewed in continuity, considering the increase in private and export market shares.
Q: Is there a possibility to exceed FY25 production numbers in FY26, especially with a higher share of private wagons? A: Sudha Mukherji confirmed that the company is focused on maintaining growth momentum and is optimistic about achieving significant growth across all business segments.
Q: What is the expected timeline for the commercialization of the strategic partnerships with Trinity Rail Group and Neromo? A: Sudha Mukherji stated that the Global Capability Center (GCC) will begin commercial transactions within the financial year. The partnership with Trinity Rail focuses on global sourcing, while Neromo's high-speed rail technology is being explored for potential applications in India.
Q: How do you see order inflow for FY26 given the lack of large tenders from Indian Railways? A: Sudha Mukherji expressed confidence in the government's execution of plans and expects significant wagon orders to be released. The private sector is also expected to remain bullish, contributing to order inflow.
Q: What is the outlook for exports, and how much revenue do you expect exports to contribute in the future? A: Sudha Mukherji aims for exports to constitute around 20-25% of revenue across all verticals, with a focus on achieving a 60/30 ratio in the rolling stock and casting division.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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