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Texmaco Rail & Engineering Ltd.

BSE: 533326 Sector: Engineering
NSE: TEXRAIL ISIN Code: INE621L01012
BSE 00:00 | 08 Aug 43.35 2.10
(5.09%)
OPEN

41.40

HIGH

43.50

LOW

41.40

NSE 00:00 | 08 Aug 43.35
(%)
OPEN

41.50

HIGH

43.50

LOW

41.50

OPEN 41.40
PREVIOUS CLOSE 41.25
VOLUME 220771
52-Week high
52-Week low
P/E 76.05
Mkt Cap.(Rs cr) 1,395
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 41.40
CLOSE 41.25
VOLUME 220771
52-Week high
52-Week low
P/E 76.05
Mkt Cap.(Rs cr) 1,395
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Texmaco Rail & Engineering Ltd. (TEXRAIL) - Chairman Speech

Company chairman speech

Dear Members

The year 2020 has been a year of unprecedented challenges for all of us. Theuncertainty caused by the Novel Corona Virus across the globe not only impacted the GlobalEconomy adversely it also impacted lives and livelihoods. During the financial year2020-21 amidst restrictive guidelines and lockdowns imposed by various Governments yourCompany ensured safety and well-being of all its employees and to its best abilityfacilitated seamless operations of the divisions of the Company.

Notwithstanding the crisis caused by pandemic and the economic impact on ouroperations your Company was resilient in making a steady recovery.

Economic highlight

Global economies and markets too faced devastating effects of pandemic. A complete haltin every sector around the globe during the peak of pandemic has slowed down the movementof growth and depleted the GDP of almost all the economies. The bruised Indian economybegan to limp back to normalcy after partial unlock measures taken by the Government in aphased manner.

Our Hon'ble Prime Minister with a mission and vision to support the backbone of oureconomy came up with AatmaNirbhar Bharat Abhiyaan and announced a H 20 lakh crore economicpackage to aid our country out of the crisis. The initiative covered policies that areefficient competitive and resilient and being self-sustaining and self-generating. TheGovernment's thrust on privatisation would certainly boost the growth in the upcomingyears.

The Indian economy woes were further compounded by the slow down impact of previousfiscal carried forward and the global health crisis. In the current financial year2021-22 the continued impact of the COVID-19 pandemic stagnant economic performance anda downturn in some sectors may continue to pose challenges to economic growth. Howeveryour company has been working relentlessly over the last one year to be resilient againstfuture events like these.

Financial Performance

The pandemic significantly impacted the businesses and the financials of your Company.It also took a blow from the impact of super cyclone 'Amphan' lashing the eastern part ofthe country in the month of May 2020. The combined effect substantially hit the operationsof your Company during the first two quarters of the financial year 2020-21. With thepartial lifting of the lockdowns the Company restored the operations at its work in aphased manner and brought back some stability in its working.

Despite the unprecedented challenges the Management of your Company remains optimisticand confident about capitalizing on emerging opportunities.

Texmaco has traditionally been a leader in development of new designs for the railwaywagons in India and continue to be engaged in new product development. Your Companyremains focused on increasing our foot-print in the wagon business. Indian Railways playsa key role in the economy with intermodal share of rail in freight traffic and the demandfor railway wagons is likely to remain robust in the next few years both from IndianRailways exports and Private sector. There is a major thrust on electrification of theentire railway network and upgradation of Rail Infrastructure. Your Company has plans inplace to grow the EPC business as Railways is likely to spend significant capex on RailInfrastructure. Your Company has the competitive advantage of having credentials to bidfor some of the projects which require high precision and technological capabilities. Toderisk our business from traditional Indian Railways dependence we are activelycontinuing to pursue export markets private sector and urban mobility segments.

Your company will also focus on initiatives to improve its operational performance inthe areas of Quality Cost and Delivery and aspire to be supplier of choice to itsesteemed customers.

The promoters have and will continue to support the Company with additional resourcesin a form of capital / debt. While the government's impetus for Rail segment make way fora promising future we are focused on improving our technical capabilities and operationalcapacities to sustain the momentum.

Industry

The Government of India's focused approach on investing in Railway Infrastructure bymaking investor-friendly policies augurs well for the Industry. Indian Railways has made ahighest ever total plan capex of H 215058 crores this year out of which H 107100crores for capital expenditure has been allocated in the General Budget.

The Government is mobilizing new sources of funding including private investment forrapid growth in the Rail infrastructure with incessant focus on the freight segment. It isexpected that Indian Railways would add about 1.5% to the country's GDP by buildinginfrastructure to support 45% of the modal freight share of the economy. IR clocked a 3%increase in freight revenue in 2020-21 inspite of it being a difficult year.

Opportunities in the Dedicated Freight Corridors under PPP mode urban mobilitymulti-tracking congested routes and the target of IR to complete 100% electrification by2023 would certainly benefit your Company. The Rail Ministry's initiative to open up toPrivatisation would also be positive to the business of your Company. The railway networkcontinues to be an ideal platform for movement of bulk commodities apart from being anenergy efficient and economic mode of transport. While Railways will continue to be afocus area your Company will approach the private sector and export markets and urbanmobility solutions with a renewed vigour.

People

We recognize the contribution of all the employees and business partners during thesetrying times and the importance of ensuring that we make our employees feel safeprotected supported and rewarded. I would like to thank all my employees and theirfamilies for the support throughout the year risking their lives sacrificing their timeand increasing the vigor with which they approached to tackle the situation.

Thank you

I would like to take this opportunity to extend my heartiest gratitude to all ourstakeholders for their continued interest faith and encouragement for Texmaco Rail. Iwould also express my heartfelt gratitude for our dedicated workforce the management teamand the Board for their relentless efforts and continued support and confidence in ourorganization. I look forward to your continued support and I also believe that togetherwe shall design our future and lead from the front to achieve our aspirations and goals.

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