Source: https://www.dsij.in/dsijarticledetail/rs-7500-crore-order-book-railway-infra-company-acquires-jindal-rail-infrastructure-expands-wagon-market-presence-operating-margins-surged-from-3-per-cent-to-8-per-cent-id002-41592
Publisher: Dalal Street Investment Journal
Texmaco Rail and Engineering Ltd, a leading manufacturer of freight wagons and provider of railway infrastructure in India, announced on July 25, 2024, that it has entered into definitive agreements with Jindal Rail & Infrastructure Ltd and its existing security holders, namely JITF Urban Infrastructure Services Ltd and Siddeshwari Tradex Private Ltd, for the acquisition of 100 per cent of JRIL’s share capital on a fully diluted basis.
JRIL is recognized for its leading capabilities in R&D, design, and manufacturing of commodity-specific freight wagons. With this acquisition, Texmaco strengthens its international product portfolio and reinforces its innovative approach, solidifying its position as a leader, particularly in the design process. In light of the growing demand for new design rolling stock from the private sector, this transaction represents a significant step forward for Texmaco in offering comprehensive, one-stop solutions.
Currently, the shares of Texmaco Rail & Engineering are trading at around Rs 237.85 per share on the BSE. The company’s current market capitalization stands at Rs 9501.33 crore. Additionally, the shares have delivered an impressive return of over 380 per cent in the past 2 years.
As per the Quarterly Results, in Q1 FY25, Texmaco Rail & Engineering recorded a revenue of Rs 892 crore. The operating profit stood at Rs 71 crore. The net profit for Q1 FY25 was Rs 40 crore compared to Rs 15 crore. Looking at the annual performance, the company generated a revenue of Rs 3503 crore in FY24. The operating profit for FY24 was Rs 262 crore with a net profit of Rs 113 crore compared to a net profit of Rs 20 crore in FY23.
