On October 16, Texmaco Rail and Engineering witnessed a remarkable 13% surge in its stock price, reaching a high of Rs 150 on the Bombay Stock Exchange (BSE). This rapid ascent followed the release of the company's financial results for the September quarter of the current fiscal year, revealing a substantial 70% year-on-year (YoY) increase in their consolidated net profit, which reached Rs 20 crore.
The company's impressive performance in 2023 becomes evident as Texmaco Rail and Engineering, a small-cap manufacturer of rail components, has marked an extraordinary gain of 137%. This robust growth significantly outpaces the benchmark Sensex, which reported an 8% increase in the same period. Notably, Texmaco Rail and Engineering reached its 52-week high of Rs 163 on September 11, 2023.
For the September quarter, Texmaco Rail's consolidated total income saw a significant 64% YoY surge, reaching Rs 810 crore. Their consolidated revenue from operations mirrored this exceptional growth, ascending by 66% YoY to reach Rs 805 crore.
A deeper look at Texmaco Rail's performance reveals that their heavy engineering division has contributed substantially to the company's overall revenue. Gross revenue from this segment experienced remarkable growth, surging over three-fold from Rs 192 crore in the year-ago period to reach Rs 616 crore in Q2FY24. Similarly, the steel foundry division witnessed a robust performance, with gross revenue increasing by 64% YoY to reach Rs 202 crore in the same quarter.
However, Texmaco Rail's infrastructure segment, consisting of the rail and green energy division and the electrical division, reported negative gross revenue performances. The rail and green energy segment experienced a 26% YoY decline in gross revenue, while the electrical division saw a 39% dip.
Texmaco Rail and Engineering operates primarily in two business segments: the heavy engineering division and the foundry division. The company manufactures a wide range of products, including railway freight cars, pressure vessels, and agricultural machinery.
Notably, in the September-ended quarter, foreign institutional investors (FIIs) increased their holdings in the company from 2.1% to 2.3%, as indicated by the shareholding pattern data. In contrast, domestic institutional investors reduced their holdings from 6.7% to 6.1% in comparison to the June quarter.
This surge in Texmaco Rail and Engineering's stock price reflects the company's strong financial performance, particularly in the face of challenging economic conditions. Investors continue to show interest in this small-cap player, encouraged by its impressive earnings and robust growth trajectory.