Texmaco Rail surges 4% on ₹1,374.41 crore rail ministry order win
In an official statement, Texmaco Rail revealed that the Railway Ministry (Railway Board) formally accepted their proposal, resulting in the award for the manufacturing and supply of approximately 3,400 BOXNS wagons, with an estimated value of ₹1,374.41 crore.
Texmaco Rail & Engineering shares surged 4% in Friday's trading session as the manufacturer of railway wagons, coaches, and locomotives successfully clinched a ₹1,374.41-crore order from the Ministry of Railways.
In an official statement, Texmaco Rail said that the Railway Ministry (Railway Board) formally accepted their proposal, resulting in the award for the manufacturing and supply of approximately 3,400 BOXNS wagons, with an estimated value of ₹1,374.41 crore.
Speaking with CNBC-TV18, Indrajit Mookerjee, Executive Director and Vice Chairman of Texmaco Rail & Engineering, said, “The total number of wagon orders this time is 11,000, and our share is 3,400 out of the 11,000. That's the number we were aiming for, considering our manufacturing capacity and ensuring timely delivery.”
Mookerjee remains optimistic about the firm's future outlook.
He said, "We expect more orders to come because this tender was for 20,000 wagons, and out of that, 11,000 have been decided. We hear that another 20,000 should be coming up soon. It's challenging to predict the exact scenario, but there's a strong possibility of more orders coming in."
On the company's strategy for chasing new orders, Mookerjee said, “It depends on our manufacturing capacity. As we increase production and continually optimise our plant, we will decide what we can deliver and accordingly pitch for new orders.”
The delivery schedule for the recently secured 3,400 wagon order is set to commence in June 2024 and is expected to be completed within 18 months, reaching fulfillment by December 2025.
In October, the company’s joint venture with SS Fabricators and Manufacturers bagged an order valued at ₹179.89 crore from SJVN Arun-3 Power Development Company Ltd, which is building a 900MW run-of-the-river hydropower project in Nepal.
The market cap of Texmaco Rail is ₹6,559 crore and it competes with industry rivals such as BEML, and Titagarh Rail Systems.
Also Read | Railway stocks may see a lot of orders flowing their way in the next few months: Sudhanshu Mani
(Edited by : Ajay Vaishnav)
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