Texmaco Rail jumps after consortium wins order

Texmaco Rail & Engineering rose 5.46% to Rs 145.75 at 13:37 IST on BSE after the company said its consortium won a contract worth Rs 1800 crore from the Dedicated Freight Corridor Corporation of India.

The announcement was made after trading hours yesterday, 10 December 2015.

Meanwhile, the BSE Sensex was down 206.88 points, or 0.82%, to 25,045.44.

On BSE, so far 5.67 lakh shares were traded in the counter, compared with an average volume of 40,477 shares in the past one quarter.

The stock hit a high of Rs 149.90 and a low of Rs 144.60 so far during the day. The stock hit a 52-week high of Rs 170.75 on 23 February 2015. The stock hit a 52-week low of Rs 101 on 24 August 2015.

The stock had outperformed the market over the past one month till 10 December 2015, rising 9.73% compared with 1.91% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 31.62% as against Sensex's 1.44% decline.

The small-cap company has an equity capital of Rs 21.01 crore. Face value per share is Re 1.

Texmaco Rail & Engineering announced that its consortium with three other companies--Hitachi Japan, Mitsui & Co. and Hitachi India--has won a contract for designing and constructing signal and telecom works for dedicated freight corridor traversing India's biggest industrial cluster between Delhi and Mumbai. The order was placed by Dedicated Freight Corridor Corporation of India (DFCCIL).

The sector covered by the contract, which is worth approximately Rs 1800 crore, will cover the 915 kilometre distance between Rewari in Haryana and Vadodara in Gujarat. This is the biggest ever order placed in India for Japanese signaling equipment. The project will be completed within 338 weeks (approximately 6.5 years) from start of work.

The project covers the Western Corridor (Delhi-Mumbai), which is part of the Dedicated Freight Corridor (DFC) project linking the four major citiesDelhi, Mumbai, Chennai, and Kolkataof India's Golden Quadrilateral.

For this project, Hitachi Japan, as consortium leader, will manufacture key equipment for the signaling system, Mitsui will provide overall coordination with DFCCIL and related agencies in Japan and India, Hitachi India and Texmaco will supply domestic equipment and Texmaco will also carry out the installation. Hitachi and Mitsui along with Texmaco will continue to work on this project, which symbolizes government-level cooperation between Japan and India.

Net profit of Texmaco Rail & Engineering declined 29.13% to Rs 2.36 crore on 24.93% rise in net sales to Rs 153.36 crore in Q2 September 2015 over Q2 September 2014.

Texmaco is a total rail solution company, engaged in the business of designing and manufacturing of rolling stock, hydro mechanical equipment, bridges & heavy structurals, steel castings, agricultural and other equipment; and through its subsidiary, installation of ballastless track, signaling and telecommunication systems, etc.

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