The company in its post-earnings conference call explained its ₹700 crore contingency provision that it made during the fourth quarter.
It said there are huge claims against its ongoing projects. It said the ₹700 crore maximum risk is under a worst case scenario against realisations of claims against ongoing projects.
The management believes provision should be made against free reserves as there is no specific cost or timeline for these claims.
Other Key Highlights
The company said it delivered 2,196 freight cars and 8,964 MT from the foundry division. For the entire fiscal, it delivered 8,372 freight cars, 34,000 MT from foundry division.
The company said large contracts haven’t seen expected outcomes due to the ongoing geopolitical issues.
It said Texmaco 2.0 will begin with adequate safety net via its contingency provision.
Q4 Highlights
The company’s revenue declined 13.3% to ₹1,167 crore from ₹1,346.4 crore last year.
Its net profit was up 45.1% at ₹57.7 crore from ₹39.8 crore.
The company’s EBITDA increased 9% to ₹106.4 crore from ₹97.6 crore last year.
Its margin expanded to 9.1% from 7.3% in the year-ago period.
Texmaco Rail shares were trading 16% higher at ₹122.66 apiece at 2.50 pm on Wednesday. The stock has risen 27.5% in the past month but has declined 10.3% this year, so far.
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