Texmaco Rail & Engineering Limited

Navin Agarwal

HEAD

10,000 Crore

d to announce to the investors that Texmaco today has an order book which is slowly inching towards 10,000 Crores which includes the wagon orders both from Indian railways, private customers, EPC business, etc. T

rs,

ing towards 10,000 Crores which includes the wagon orders both from Indian railways, private customers, EPC business, etc. Theoretically we are sitting on order book of (inaudible) 2:19 plus now and it is

6450 Crore

leased to announce that we bagged our largest ever order from Indian Railways last quarter which is 6450 Crores close to 20,000 wagons to be executed over the period of 39 months over and above that we also hav

305.09 Crore

any, although not good, but then I have to share with you. The gross revenue for the quarter one is 305.09 Crores as compared to 336.58 Crores in the corresponding quarter of the previous year, which was unfortun

336.58 Crore

hen I have to share with you. The gross revenue for the quarter one is 305.09 Crores as compared to 336.58 Crores in the corresponding quarter of the previous year, which was unfortunately also impacted last year

3.62 Crore

to improve the performance. The EBITDA gross profit that is PBT, net profit after tax are negative 3.62 Crores, negative 26.06 Crores and negative 22.53 Crores against a positive of 41.57 Crores, 15.66 Crores

26.06 Crore

mance. The EBITDA gross profit that is PBT, net profit after tax are negative 3.62 Crores, negative 26.06 Crores and negative 22.53 Crores against a positive of 41.57 Crores, 15.66 Crores and 4.7 Crores respecti

22.53 Crore

ofit that is PBT, net profit after tax are negative 3.62 Crores, negative 26.06 Crores and negative 22.53 Crores against a positive of 41.57 Crores, 15.66 Crores and 4.7 Crores respectively in the previous year

41.57 Crore

tax are negative 3.62 Crores, negative 26.06 Crores and negative 22.53 Crores against a positive of 41.57 Crores, 15.66 Crores and 4.7 Crores respectively in the previous year quarter one. These are comparative

15.66 Crore

ve 3.62 Crores, negative 26.06 Crores and negative 22.53 Crores against a positive of 41.57 Crores, 15.66 Crores and 4.7 Crores respectively in the previous year quarter one. These are comparative performance wh

4.7 Crore

egative 26.06 Crores and negative 22.53 Crores against a positive of 41.57 Crores, 15.66 Crores and 4.7 Crores respectively in the previous year quarter one. These are comparative performance which is just for

80%

comes to the rolling stock division which is the main division of the company because almost 70 to 80% turnover comes from here if you do not consider rail EPC and if you consider rail EPC still 60% of

“Although you will not be very happy, you will be disappointed with the kind of performance which the company has-done in the first quarter there are reasons, but the reasons are more justification.”

“The 20067 order is to be executed in 39 months and thereafter so it means virtually three and quarter year we will have to gear up for this thing and this year we have to perform for six months combatively so roughly we will have to do about 3300 wagons and from next year onwards as per requirement we have to deliver minimum 6600 number of wagons.”

“It was 80% through rail at that point of time in movement and with all the green movement, pollution issues reducing the carbon foot print and all those things I think the focus on railway will increase more and more in the coming year so this is how basically it is and the railway has ambiguous target of CAGR of 16.5% which is none of the government segment has ever assumed about.”

“This is what railways has done apart from this there is a very robust demand coming out of private sector because they know pretty well the railway will be buying only standard type of wagons which are open and closed types rest all the type of wagon requirement will be have to be met by them through their own sources so all specialized end requirement need to be made by them.”

“With this basically I foresee that the wagon division especially the rolling stock wagon division will be doing well, will start improving from quarter two and do the best performance during quarter three and quarter four as of now as the situation emerges.”

“We will be carrying out all these things.”

“The plans are all ready but yes we are targeting to increase the production capacity to almost 36,000 tonnes which will be in operation from next year middle.”

“The next question as per your press release Ashish you will be leaving the company for Greener Pastures so could you just let us know give us some clarity on who will take over your position what is happening on that front because we have got any clarity on that yet and also could you on that point just reflect during your duration as MD how has the company evolved because clearly delivery is still lacking so could you speak a little about those two points.”

“Basically on a capex side we are targeting to invest close to about Rs.100 Crores and this funding will be done primarily from borrowing which we are basically already tied up some borrowings to extent of 75 to 80 Crores and balance will be from generation.”

“As a result of this thing there will be a big pressure on the steel and other requirement which are all being bought in cash so we will looking for an enhancement of about 100 Crores over there so that is where we are basically putting a break and want to restrict our borrowing to achieve the production in respect of what we have explained to you earlier from here onwards.”

Ashish Gupta

5

AK Vijay

2

Indrajit Mookerjee

2

Moderator

1

Manish

1

Navin Agarwal

1

Ashish Gupta

earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “? then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Navin Agarwal, Head Institutional Equities at SKP Securities Limited. Thank you and over to you Sir! Good moming ladies and gentlemen. It is my pleasure to welcome you to this earnings conference call on behalf of Texmaco Rail and SKP Securities. We have with us Mr. Indrajit Mookerjee, Managing Director along with his colleagues Mr. A K Vijay, Executive Director, Mr. Hemant Bhuwania, VP, Corporate Finance, and Mr. Ravi Varma, VP Corporate Affairs and Company Secretary. We will have the opening remarks from Mr. Ashish Gupta and over view on the financials by Mr. Vijay followed by a Q&A s

AK Vijay

Thank you Ashish and welcome again all the investors and we are happy to welcome you in this investor conference which is for the quarter one of the performance of Texmaco Rail and Engineering Limited. Although you will not be very happy, you will be disappointed with the kind of performance which the company has-done in the first quarter there are reasons, but the reasons are more justification. We accept we have not been able to perform to the expectation of investors, but we can assure you going forward we are taking all such steps that as Ashish already explained to you the order book is very comfortable and we are taking steps towards how we can increase the production and productivity by increasing shift, by investing some money in the balancing equipment, making sure the transaction facilities are duly provided with the required working capital so that the production and other things pickup, my dispatches pickup and we will try to churn out one of the best performance which comp