Texmaco Rail, under the leadership of Executive Director and Vice-President Indrajit Mookerjee, is gearing up for increased business prospects following a recent Rs 1,374.41 crore contract win from the Ministry of Railways. Mookerjee expressed optimism about securing more private orders and an additional government contract for 20,000 wagons in the near future.
Mookerjee revealed that the newly acquired orders are scheduled for delivery starting mid-2024, with completion expected by December 2025. The announcement propelled Texmaco Rail and Engineering shares to a 10.7% percent surge at ₹188.80 per share, reaching a 52-week high.
Texmaco Rail currently boasts an order book of 50,000 wagons from Indian Railways and 2,000 wagons from private entities. Despite the temporary suspension of the general-purpose scheme, a backlog of 4,000 pending wagon orders remains in the pipeline. Mookerjee emphasized the significant demand, estimating a success rate of 70 to 80 percent.
In October, Texmaco Rail’s joint venture with SS Fabricators and Manufacturers secured a Rs 179.89-crore order from SJVN Arun-3 Power Development Company Limited, engaged in a 900 MW run-of-the-river hydropower project in Nepal.
As part of the KK Birla Group, Texmaco Rail is an engineering and infrastructure company specializing in the manufacture of rolling stock, wagons, coaches, loco shells, hydro-mechanical equipment, and other engineering components.
Last month, the company successfully raised Rs 750 crore through a qualified institutional placement (QIP) of equity shares. The funds are earmarked for loan repayment, capital expenditures, and general corporate purposes.
Mookerjee, citing a 30 percent hit ratio, highlighted Texmaco Rail’s continuous efforts to enhance production capacity by debottlenecking its plant. This strategic move aims to position the company favorably for upcoming opportunities and timely project deliveries.
