The Company has recently bagged an order for 20,067 wagons valuing approx. Rs. 6,450 crore in May 2022 (to be executed over a period of thirty-nine months), against the recent railway tender for wagons. This is the largest ever single wagon order released by the Indian Railways on the Company. With robust demand emerging on the back of pent-up demand gaps, the prospects of the Division appear bright. Floating of new tenders both from Indian Railways and Private parties will enable Company to operate to its potential.
More details:
- The Government’s focused approach on completion of freight corridor works and upgrading the Rail infrastructure will be positive for the Rail EPC Division of the Company. The Division is presently bogged down with huge operational backlogs at various projects it is working on for reasons not attributable to it. The Rail EPC Division is presently focusing on expeditious execution & contract closure activities. The Rail EPC Division would be benefitted with the Government’s plan to prioritize the multi-modal connectivity between mass urban transport and Rail network, as part of “PM Gati Shakti” scheme.
Additional Financial Results for FY 2021-22 for the company:
- The Gross Revenue for the year was Rs.1653.22 crore compared to Rs 1720.51 crore in the previous year. The EBIDTA, Gross Profit/(Loss) (PBDT) and Profit/(Loss) before Tax & Exceptional Items for the year was Rs. 168,47 crore, Rs. 68.23 crore & Pts.32.42 crore against Rs. 151.82 crore, Rs. 48.85 crore & Rs. 11.59 crore respectively in previous year.
- For The 4th quarter FY’22,the Gross Revenue was at Rs.457.15 crore compared to Rs.619.53 crore of the corresponding quarter of the previous year. The Gross profit/(Loss) (PBDT) and Proht Before Tax & exceptional items for the quarter was Rs. 74.73 crore & Rs. 5.91’crore against Rs. 42.02 crore & Rs. 32.12 crore respectively in the previous year.
- The Directors have recommended a dividend @ l0% on the Equity Shares of the Company same as previous year.
- The FY 2l-22 continued to witness intermittent disruptions in operations due to the ongoing spread of COVID-19 pandemic, which resulted in the adverse impact on the global & domestic economic activities affecting all major sources of economy, the effect of which was more prominent on infrastructure & capital goods industries. Added to it the shortage of industrial oxygen and wheelsets severely affected the performance of the Heavy Engineering Division of the Company.
- The performance of the Division was adversely affected as the margins remained under pressure with continuing unprecedented hike in prices of steel and other commodities /Bought -Out items. The Company with its resilient efforts was able to overcome some of the hurdles & tirelessly work on capitalising the opportunities thrown open to the sector. The highest outlay of Rs 2.45 Lakh crore for Railway infrastructure and development as announced in the Railway Budget augurs well for the Company.
- During the quarter, the Steel Foundry Division of the Company also faced serious challenges on account of the unprecedented trend of increase in input cost of raw materials and higher sea transportation cost resulting in irregular shipments of export goods and disruptions in supply of foundry materials, impacting the performance of the Division.
- With new product developments and robust export demands, the Division is optimistic to perform better in the current financial year. The consolidated order book value of the Company including its subsidiaries / JVs is approx. Rs. 9054 crore.
Source: TEXMACO -Press Release
