Texmaco Rail & Engineering shares soar over 11.5% on healthy Q2FY24 earnings

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Texmaco Rail & Engineering rallied 11.69 % in Monday's early trade to 148.95 apiece, driven by the company's healthy performance in the quarter ending in September. At 10:15 AM, the stock was trading with a gain of 6.6% at ₹142.20. During Q2FY24, the company reported a consolidated net profit of ₹25 crore, marking a 66% increase compared to the net profit of ₹15 crore recorded in the same period last year.

Additionally, there was a 22.52% sequential increase in net profit. Revenue from operations for the second quarter of FY24 saw a 66.32% growth, reaching ₹805 crore compared to ₹484 crore in Q2FY23. The company reported an EBITDA of ₹76 crore, indicating a YoY increase of 76.74%.

While the EBITDA margin remained steady on a YoY basis at 9%, it showed a 600 basis point improvement sequentially. All segments of the company, including heavy engineering and steel foundry, exhibited strong revenue growth during the quarter. Revenue from heavy engineering increased to ₹616 crore from ₹192 crore in the comparable quarter.

Revenue from the steel foundry stood at ₹202 crore, compared to ₹123 crore in the previous year. Revenue from rail and green energy (Infra) reached ₹123 crore, while electrical (Infra) contributed ₹32.23 crore. In terms of the H1FY24 performance, the company achieved revenue of ₹1,462 crore, marking an 86% surge compared to ₹783 crore in the same period of the previous fiscal.