Texmaco Rail & Engineering posts lower Q2 net profit

KOLKATA: Texmaco Rail & Engineering Limited, an Adventz Group company, reported a net profit at Rs 5.94 crore in the second-quarter (Q2) ended September 30, 2013, compared to Rs 29.26 crore in the corresponding period previous year. Company officials attributed the dismal Q2 performance to substantial underutilisation of its plant capacity consequent on non-release of railway orders for wagons to the industry after the last order in January 20l2.

Gross revenue for the said quarter stood at Rs 148.87 crore against Rs 302.12 crore in the previous corresponding quarter, the company’s media statement stated.

Incidentally, working of the company’s steel foundry division was also impacted owing to the poor workload in the wagon division. It has, however, successfully developed castings for export markets and expects to commence supply of steel castings to these markets in Q4 of the current year. The old foundry modernisation is progressing well, and the commissioning of the new moulding line is expected by December 2013.

While Texmaco Rail & Engineering’s JV with UGL Rail of Australia is in the process of executing orders for supply of loco bogie frames from Queensland Rail of Australia, its JV leasing company – Touax Texmaco Railcar Leasing Company is working out leasing plans for some new design wagon rakes to automobile manufacturers.