Friday, May 23, 2014

Merger with Kalindee and release of new orders by Indian Railways could improve Texmaco's perfeomence

Merger with Kalindee and release of new orders by Indian Railways could improve Texmaco's perfeomence
Texmaco Rail & Engineering has acquired a controlling stake in KalindeeRail Nirman (Engineers) Ltd. (Kalindee) with a view to expanding its product portfolio. Kalindee is engaged in providing construction services to the Rail/Metro sector in the field of Signaling, Telecommunications,Track and Information Systems.

The board of directors of Kalindee Rail has fixed the share swap ratio 1: 1.06, i.e., 106 fully paid-up equity shares of Rs 1 each of Texmaco shall be issued for every 100 fully paid-up equity share of Rs 10 each held by a shareholder in the company.

Meanwhile, Texmaco Rail & Engineering reported net loss of Rs 3.52 crore in the quarter ended March 2014 as against net profit of Rs 8.85 crore during the previous quarter ended March 2013. Sales declined 54.26% to Rs 91.22 crore in the quarter ended March 2014 as against Rs 199.42 crore during the previous quarter ended March 2013.

Texmaco's overall performance was substantially impacted due to unprecedented delay in release of wagon orders by Indian Railways for the year. In fact, the orders were finalised as late as in April 2014, and the company virtually suffered idle capacity for the entire year.