July 7, 2016 Texmaco Rail & Engineering Ltd.
Transforming from wagon manufacturer to integrated rail solution provider CMP INR 94 Target INR 119 Initiating Coverage – BUY
Company Background Key Share Data Face Value (INR) 1.0 Texmaco Rail & Engineering (Texmaco), a part of Adventz Group of Mr. Saroj Equity Capital (INR Mn) 210.1 Poddar, is India’s largest railway wagon manufacturer with an annual capacity of Market Cap (INR Mn) 19,777.5 10,000 wagons near Kolkata, West Bengal. It also manufactures hydro mechanical 52 Week High/Low (INR) 154/89 equipment, bridges, structural equipment and steel castings (annual capacity of 6 months Avg. Daily Volume (BSE) 14,090 30,000 metric tonnes). It has recently acquired Kalindee Rail Nirman and Bright BSE Code 533326 Power, EPC service providers to Indian Railways (IR) & Metros in diverse areas, NSE Code TEXRAIL towards its quest to become an integrated rail solutions provider, targeting high Reuters Code TEXA.BO value contracts . It has JVs with Wabtec & Touax Rail. Investment Rationale Bloomberg Code TXMRE IN Well placed to benefit from growth drive of IR, volume growth to pick up Shareholding Pattern (as on 31 Mar 2016) Contrary to the subdued demand of ~5,000-6,000 wagons p.a. by IR, the sector is all set to get boost by massive pent-up demand in the replacement market 1 1 % and introduction of 10-20% freight loading through 25-tonne axle-load wagons P ro m o t er
2 5 % F II 's in FY17 which will augment higher demand for wagons.
D I I 's Texmaco is best placed to benefit from IR’s growth drive with its low cost 9 % 5 5 % O th e rs manufacturing infrastructure, enabling it to sustain aggressive price competition.It has lately secured an order of 1,338 wagons from IR and expected to win another order (1,200-1,500 wagons) over the next one year. Source: Company This, along with continued traction in orders from private sector and defence Key Financials (INR Million) would help in volume growth from FY18. Particulars FY15 FY16 FY17E FY18E Acquisition of Kalindee Rail will help in its quest to become an integrated rail Net Sales 4,385.8 7,280.1 8,427.2 9,576.5 solutions company Texmaco acquired a controlling stake in Kalindee Rail which provides EPC Growth (%) -1.7% 66.0% 15.8% 13.6% services to IR and Metros, and enjoys a leadership position in ballastless tracks EBITDA 195.4 191.5 462.6 621.5 (for metro lines) along with a strong presence in signalling & track laying (a key PAT 137.4 215.9 468.5 633.1 thrust area for railways). Growth (%) -19.1% 57.2% 117.0% 35% The combined entity has made deeper inroads in railways’ value chain. EPS (INR) 0.7 1.0 2.2 3.0 Kalindee will be able to bid for higher value project, given the strong financial BVPS (INR) 46.6 43.3 45.3 47.9 backing of Texmaco. Higher value orders are margins accretive as this space is less crowded (2-3 players as against 10-15 players in lower value orders). Key Financials Ratios Focus on non-wagon (value added) businesses and exports to aid growth Particulars FY15 FY16 FY17E FY18E Texmaco has significant presence in non-wagon businesses (steel foundry & P/E (x) 208.0 91.7 42.2 31.2 hydro mechanical equipment), which are expected to offset any slow orders P/BVPS (x) 3.2 2.2 2.1 2.0 from IR. It has also forayed into wagon leasing (through 100% Hi-tech Mcap/Sales (x) 6.5 2.7 2.3 2.1 subsidiary), EMU coaches (received pilot order) and loco bogies frames (through JV) and plans to enhance presence in rail safety, which bodes well for EV/EBITDA (x) 150.7 108.5 44.6 33.2 company’s growth.Further, robust demand of steel foundry products arising ROCE (%) 0.4% 0.5% 2.3% 3.2% from exports (North America) augurs well. ROE (%) 1.8% 2.3% 4.9% 6.2% Any Global company establishing its base in India would like to have a partner EBITDA Mar (%) 4.6% 2.6% 5.6% 6.6% like Texmaco. Given the technical knowhow strength and infrastructure, a move PAT Mar (%) 3.1% 3.0% 5.6% 6.6% into defence is a matter of time whichcan be the key revenue driver in future. Margins to scale up with better capacity utilization Debt - Equity (x) 0.1 0.1 0.1 0.1 EBITDA margins have declined significantly from ~15.2% in FY13 to ~2.6% in Source: Company, SKP Research FY16 on account of muted volumes and depressed realisations due to slack 1 Yr price performance TEXRAIL vis-à-vis BSE Mid Cap demandandcompetitive pricing by a new entrants. Industry Margins can only improve with higher volumes (only expected in 30% FY18E/19E), absorbing fixed cost. However, as volumes gather momentum (IR & Non IR), driving up operating leverage and change in product mix (forging and -20% defence), we expect margins to steadily recover to ~5-6%+ over FY16-FY18E. It Jul Jul Oct Apr - Jan Jun - Feb Mar Aug Sep Nov Dec May ------3 3
- would still be below ~17%-18% margin enjoyed during FY11-12. 3 3 3 3 3 3 3 3 3 3 -70% 3 Valuation Texmaco is making strategic diversification (value added products) in its Texmaco BSE Mid Cap revenue stream by building technical collaborations with global players and has a strong balance sheet with net cash (after factoring current investments) to pursue organic and in-organic growth. Analysts: Nikhil Saboo We expect Texmaco to witness full impact of recovery from FY18 lead by higher Tel No: +91-33-40077019; Mobile: +91-9330186643 volume amid improved demand for wagons from IR & private players coupled with diversification benefits and growth from steel casting segment, due to focus e-mail: [email protected] Anik Das on exports. We recommend a Buy on the stock with a target price of Rs 119/- Tel No: +91-33-40077020; Mobile: +91-8017914822 (26% upside) in 15 months. e-mail: [email protected]
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Texmaco Rail and Engineering Ltd.
Industry Snapshot – Rolling Stock (Indian Railways)
India has the fourth largest railway system in the world. In CY2015, Indian railways (IR) carried ~1.1 bn tons of freight and ~8.4bn passengers and ran ~13,000 passenger trains carrying more than ~23mn passengers per day. Over the years, Railways have suffered from underinvestment. Nevertheless, the incumbent government has sizeable plans to revamp railway infrastructure, critical for economic growth. A five year master plan (FY16- 20) involving Rs 8.6 trncapex (significant jump in FY16 outlay – Rs 1 trn -up 54% y-o-y) has been unveiled, which would have a multiplier effect on GDP growth. Immediate goals include, spending on de-congestion (doubling and electrification) rather than building new lines, focusing on improving speed, efficiency and finding new sources of funds.
Presently, for faster execution IR has locked-in institutional financing. This has allowed for adopting a corridor approach to capex spending rather than piece-meal approach.World Bank is conducting due diligence to put together a USD 30 bn Rail India Development Fund, not limited only to IR, but also PPP projects. IR is also focusing on building partnerships with state governments and PSUs. Seventeen states have signed in principle approval to form SPVs with Odisha & Maharashtra recently having signed MoUs and JVs with PSUs such as Coal India, NTPC, etc. for mine, power plant connectivity projects. Nine projects totalling 962 km worth Rs 95 bn are under implementation.
Exhibit: Five-year capex plan (FY16-20)
Item Rs Bn % of Total
Network Decongestion (including DFC, Electrification, Doubling including 1993.2 23% electrification and traffic facilities)
Network Expansion (including electrification) 1930 23% National Projects (North Eastern & Kashmir connectivity projects) 390 5%
Safety (Track renewal, bridge works, ROB, RUB and Signalling & Telecom) 1270 15%
Information Technology / Research 50 1% Rolling Stock (Locomotives, coaches, wagons – production & maintenance) 1020 12%
Passenger Amenities 125 1% High Speed Rail & Elevated corridor 650 8%
Station redevelopment and logistic parks 1000 12%
Others 132 2% Total 8560.2 100%
Source: Indian Railways, SKP Research
Opportunities &Demand Drivers
Higher freight traffic builds momentum:
IR has steadily lost a share of freight transportation to roads (rail share in the freight transportation market has dropped from over 85% in 1950 to less than 30% now) on account of lower investment in railway infrastructure development compared to the projected growth in freight traffic. Due to sombre investment in wagon capacity over the years, wagon capacity utilisation has been over 100%, which underscores the need to add more rolling stock to IR’s kitty. Currently, IR has been taking the following steps to clear bottlenecks: i) Increased tonnage capacity,
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Texmaco Rail and Engineering Ltd.
ii) Separate feeder routes to provide maximum last mile connectivity, iii) Focus on Dedicated Freight Corridor. This strategy aims to shift focus of freight transportation market back to rail transport. Going forward, we believe bulk of the traffic will continue to be through railways as there is significant cost differential between road and rail freight rates. It is expected that DFC project related wagon ordering will boost volumes for the industry and pickup in freight traffic linked to economic activity could add another 4-5% to wagon demand. Exhibit: Drop in rail share in freight transportation market
100%
31% 31% 80% 32% 32% 36% 36% 36% 36% 39% 39% 40% 40%
62% 64%
60% 70% 83% 85%
40%
69% 69% 68% 68% 64% 64% 64% 64% 61% 61% 60% 60% 20% 38% 36%
30% 17% 0% 15%
FY1951 FY1961 FY1971 FY1981 FY1991 FY2001 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Road(%) Rail (%)
Source: Ministry of Railways, SKP Research
Dedicated Freight Corridor (DFC) – A game changer:
Setting up of DFC’s (eastern & western of ~3,300km) would lead to decongestion of freight and passenger traffic on main routes, speed up delivery and generate additional freight carrying capacity of >500 mn tpa at peak. Additionally, container traffic and coal traffic would be an important constituent of the WDFC and EDFC respectively. By December 2017, government plans to commission the first stretch and complete a third of the total by mid 2018 & full length by December 2019. DFCs will benefit by 1) creating 20x freight carrying capacity to meet demand (speed to treble to over 70 kmph,hence more trains can be run) carrying capacity/wagon to 6x (incl double stacking& longer rakes),2) freeing up passenger capacity (70% of freight to shift to DFC) and 3) improved wagons, leading to lower turnaround time and higher productivity. Exhibit: DFC vs IR
DFC Indian Railways WDFC EDFC Height 4.265mt 7.1mt 5.1mt Container stack Single Double Single Train length 700mt 700/1,500mt Train load 5,000 tonnes 13,000 tonnes Axle load 22.9/25 25t; bridges and formation designed for 32.5t Maximum speed 75kmph 100kmph Station spacing 7-10km 40km approx Signaling Absolute/automatic with 1km spacing Automatic with 2km spacing Source: DFFCIL, SKP Research SKP Securities Ltd www.skpmoneywise.com Page 3 of 22
Texmaco Rail and Engineering Ltd.
Wagon demand to improve, led by high latent demand from Indian Railways:
We expect significant orders to come from the replacement market considering an average wagon life of ~25-30 years and on average ~4-5% of the wagons (industry-wide fleet size of ~250,000 wagons) should be replaced every year. On the contrary, over the last~2-3 years only ~5,000-6,000 wagons p.a. were delivered to IR, envisaging high latent demand in the replacement market. IR has set target to increase daily passenger carrying capacity from ~21mn to ~30mn, a rise in track length by ~20% from 1,14,000km to 1,38,000km.Going foward, we expect, IR requirement of ~15-17k wagons per year.
Exhibit: Wagon demand set to improve
20000
16000
12000
8000
units) of (No 4000
0 18000 17000 10000 15000 15000 15000 9000 9300 0 FY12 FY13 FY14 FY15 FY16 FY17E FY18E FY19E FY20E
Source: Indian Railways, SKP Research A sharp rise in expenditure is expected on rolling stock in the next five years:
The allocation on rolling stock has been increased by 43% with higher allocation to wagons from Rs 36bn to Rs 59bn and carriages from Rs 41bn to Rs 91bn.Though, wagon ordering related to 10,000 procurement orders for FY15 hasn’t taken place, IR has set a target of procuring 16,800 wagons in FY16. Proposed investment in rolling stock during the period FY16-20E is expected to be around Rs 1,020 bn implying an annual tendering of around Rs 200 bn. However in FY2015, industry has witnessed low tendering thus the remaining tendering ticket size is expected to be higher. Exhibit: Investment in rolling stock by Indian Railways
(Rs Bn) FY11A FY12A FY13A FY14A FY15A FY16BE FY16RE FY17BE New lines (construction) 53 53 53 58 71 128 135 156 Gauge conversion 32 28 27 31 37 55 43 43 Doubling 22 23 25 30 39 184 90 251 Traffic facilites 8 6 8 7 8 24 12 12 Rolling stock 147 164 184 175 165 193 191 273
Locomotives 57 64 79 91 81 85 89 103 Carriages 42 45 54 53 55 44 41 91 Wagons 47 44 50 31 27 45 36 59 Others 1 11 1 0 1 20 25 19 Leased Assets 28 35 42 50 54 63 63 70 Road safety,track renewals 64 69 73 73 80 82 86 138 Inv. In undertakings 18 26 34 47 51 158 70 111 DFCC 1 5 13 12 15 93 53 76
Metro transport projects 5 10 12 9 10 20 222 14 Others 31 36 47 60 142 91 88 102 Total 408 451 504 540 658 1000 1000 1170 Source: Indian Railways, SKP Research
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Texmaco Rail and Engineering Ltd.
Railway Ministry to expedite tendering process:
The current Government has expedited tendering process.Lately,Railway Ministry has been reorganised with several new senior-level appointments which could potentially unclog the protracted tendering process for rolling stock. A shorter and simplified tender approval process under the new Rail Minister would lend strong volume growth visibility to wagon manufacturers. Exhibit: The flow of work in India’s Railway Ministry
Ministry of Railway (Suresh Prabhakar Prabhu)
Minister of State
Railway Board (Chairman & Ex-officio Principal Secretary)
Financial Member Member Commissioner Member Member Member Staff Mechanical Engineer Electrical Traffic
IT system Locomotives controlled by Cris (wagons/coache (Center for Rail Bookings s/ diesel Railway locomotive) Infosystems)
Additional Member Additional Member (production unit) 2
Zonal Railways Chief Mechanical engineer
PSUs & JVs like Several divisions headed IRCTC, IRCON, Konkan by respective Divisional Railways etc. get orders Railway Managers from zonal railways or Central railways depending on requirement
Source: Indian Railw ays, SKP Research
Currently, Railways has revamped its policy of releasing tenders and has scrapped its old opaque policy of releasing the wagon contract in two tranches and will release the full wagon contract at once in order to ensure that there is no break in production. It has also changed rules under competitive bidding on how to distribute the total orders among the successful bidders. Earlier a successful L1 bidder got 50% of order while L2 and L3 got 30% & 20% respectively. With the new policy in place, the L1 bidder will get to supply 22% of the total tendered amount while L2, L3, L4, L5 and L6 will be given a share of 20%, 18%, 16%, 13% and 11%. The new policy could end the logjam in the wagon procurement process and may help in de-incentivizing aggressive bidders.
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Texmaco Rail and Engineering Ltd.
Exhibit: Changes in procurement policy could promote healthy competition among players
60% 120%
50% 50% 100%
40% 80% 40% 55% 30% 30%
60% 22% 20% 20%
18%
20% 16%
40% 13% 11% 60% 10% 20% 45%
0% 0% Current Policy New Policy L1 L2 L3 L4 L5 L6
Competitive Bidding Regular Sources Current Policy New Policy
Source: Company, SKP Research
Peer group analysis: Recent ordering shows competitive intensity
During FY16, IR has released a tender of ~9,228 wagons. However, private sector wagon manufacturers have not accepted orders from IR, due to low prices quoted by one of the new entrants, Jindal Rail, for a price which became non remunerative for the existing players. Out of tendered 8,509 wagons, only 3,146 could be purchased through competitive bidding, as all companies except the winning (L1) bidder refrained from supplying wagons at L1 price. Following this, IR resorted to dual pricing and L2 agreed to supply another 1,871 wagons only at a mark-up of 21% from L1 while other companies still refused. However, with wagon ordering likely to see a fresh lease of life given the railway infrastructure push and schemes such as wagon leasing gaining traction, margins should see improvement for players.
Exhibit: Industry Players - Capacity and realization per wagon
Avg. Realisation/Wagon Company Capacity (Rs. Mn.)
Texmaco Rail & Engineering Ltd 10,000 2.2 Jupiter Wagons Ltd. 2,500 1.2
Besco Ltd. 5,000 1.3 Titagarh Wagons Ltd. 8,400 1.3
Hindustan Engineering & Industries Ltd. 3,900 1.2
Modern Industries 4,500 1.4 Jindal Rail Infrastructure Ltd. 3,000 1.1
Source: Indian Railways,SKP Research
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Texmaco Rail and Engineering Ltd.
Company Profile
Texmaco Rail & Engineering (Texmaco) was incorporated and demerged (in April 2010) from the erstwhile Texmaco Ltd, founded by Dr KK Birla in 1939. It is now a part of Adventz Group headed by Mr.SarojPoddar. It is engaged in manufacturing railway freight cars, EMU coaches, locomotive components and assemblies, hydromechanical equipment, bridges, structural equipment and steel castings.
Texmaco is the largest wagon manufacturer in the country and has the largest single location wagon manufacturing facility in the world. It has the capability to manufacture all types of wagons required by IR as well as the private space; with an annual production capacity of 10,000 wagons at its manufacturing facilities at Belgharia, Agarpara, Panihati and Sodepur near Kolkata in West Bengal. Texmaco has been certified by the RDSO with an annual production capacity of 6,800 wagons, based on its past production.
Texmaco is one of the largest suppliers of steel castings in India, with an annual production capacity of 30,000 metric tonnes of steel castings. Its steel foundry division is located at Belgharia, West Bengal.
Texmaco has entered into technical collaboration with renowned multi-national companies such as Touax Rail, France and Wabtec International Inc., U.S.A, which have diverse experience in the rail industry to expand its presence in the domestic market as well as enhance its export potential.
Texmaco recently acquired Kalindee Rail Nirman, an EPC service provider to IR & metros in the field of signaling track, telecommunications and auto fare collection machines. This acquisition will enable Texmaco to target value contracts for various solution requirements for the railway sector, exports and the private and public sector. It has raised ~Rs 2.9bn through QIP by issuing 28mn shares at Rs 106 per share in FY15. Texmaco is currently in the process of amalgamating Kalindee Rail with itself, which is expected to be completed shortly. The company proposed to issue 106 shares of Texmaco for every 100 shares of Kalindee Rail. Revenue Mix Texmaco has four business segments viz. wagon, hydro-mechanical equipment, steel foundry and others. Wagon vertical contributes ~65% of total sales, hydro-mechanical equipment segment contributes 10% andsteel foundry and other verticals contribute ~25%.
Exhibit: Revenue Mix (%)
100% 3% 4% 5% 4% 3% 5% 15% 20% 19% 25% 26% 22% 4% 3% 70% 17% 10% 6% 13%
40% 72% 73% 65% 65% 65% 58%
10%
FY11 FY12 FY13 FY14 FY15 FY16
-20% Wagon Hydro-mechanical equipment Steel Foundry Others
Source: Company, SKP Research
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Texmaco Rail and Engineering Ltd.
Business Segments:
Texmaco has built a strong portfolio of wagons capable of carrying a wide variety of materials such as cement, minerals and ores, alumina, metals, and chemicals. The company is also expanding its presence in areas such as special purpose freight cars for oversized consignments, double decked rakes, high speed coaches, metro units etc.
Texmaco has set up a production facility to manufacture electrical multiple units (EMU), diesel electric multiple units (DEMU) and mainline electric multiple units (MEMU) coaches, passenger coaches, locomotive shells & assemblies and sub-assemblies.
Steel Foundry business of Texmacoproduces railway castings such as bogies, couplers, draft gears and industrial castings such as shovels, shrouds for mining equipments, track work manganese castings and hub castings for hydro equipment and is qualified to supply products in the North American and CIS countries.
Exhibit: Business Segment
Hydro-Mechanical Wagons Coaches Bridges & Structures Steel Foundry Equipment
(1) Conventional (1) Electrical (1) Radial & (1) Girders, hull (1) Railway wagons multiple units vertical gates blocks castings,such as (EMU) bogies & couplers, (2) Commodity- (2) Flap gates, (2) Parts of specific wagons (2) Diesel electric hoists bridges & flyovers (2) Supplies steel multiple units for large bridges castings to Indian (3) Loco shells, (DEMU) (3) Gantry & for railways Railways and components and electric overhead other wagon assemblies (3) Mainline travelling (“EOT”) builders in India (3) Steel girders electric multiple cranes ) for railway bridges units (MEMU) (3) Exports steel (4) Heavy steel casting to the (4) Locomotive structures, US,Australia,and shells including barrage Southeast Asia
equipment (5) Assemblies and sub- (5) Refurbishment assemblies and replacement Installed work opportunities Installed Capacity- in existing hydro Capacity- 10,000 TPA 30,000 TPA projects barrage equipment
Source: Company, SKP Research
Wagon- Installed Capacity & Capacity Utilisation:
Texmaco is one of the largest wagon manufacturers in India with ~17%+ market share and a cumulative wagon manufacturing capacity of 10,000 wagons per year.It produces conventional wagons along with commodity-specific wagons and IR is its largest customer. Recently, the company started supplying wagons to the defence sector. It also caters to other customers, including container freight operators and industries involved in the production of commodities.
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Texmaco Rail and Engineering Ltd.
The wagon industry has been languishing over limited ordering by IR which has hurt the financial health of many players in the space, which leaves Texmaco to successfully capture the pent-up demand. Pricing of wagons over last few years has been severely impacted as players were keen to utilise capacities as ordering had been scarce. Prices of regular wagons (BOXNHL and BCNHL) were down between ~10-15% from the last round of ordering.
Ordering activity by the IR has been erratic over the past ~2-3 years and to de-risk the business Texmaco has built a strong franchise in the non-IR space and is the market leader in the segment as well, with major private as well as public sector power plants, metal and materials players as its clients. Exhibit: Wagon - (Installed Capacity & Capacity Utilisation)
7000 60% 56% 57% 52% 56% 51% 5000 46% 40%
3000 30% 12% 20% 1000
832 6800 3804 6800 3471 6800 3876 6800 6800 2062 6800 3100 6800 3538 6800 3800
FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E -1000 0%
Wagons- Installed Capacity (TPA) Production (TPA) Capacity Utilisation (%)
Source: Company, SKP Research
Coaches
Texmaco is pre-approved by IR for manufacture of Electrical Multiple Units (EMU) and Main Line Electrical Multiple Units (MEMU). It has started to diversify its business from wagons to manufacturing EMU/coaches with technical tie-up with Kawasaki, Japan. The company has already received an order for a rake of EMU coaches from IR and has a dedicated EMU manufacturing unit in Kolkata. It also stands to benefit from projects like Diamond Quadrilateral, which needs high speed precision coaches. Hydro-mechanical equipment
Texmaco offers “one stop” solution to customers from designing to commissioning of hydro- mechanical equipment and providing after-sales services. It manufactures components, such as radial & vertical gates, flap gates, hoists, gantry & electric overhead travelling (“EOT”) cranes and other heavy steel structures, including barrage equipment. It has also forayed into refurbishment and replacement work opportunities in existing hydro projects and barrage equipment and presently, is executing a contract to commission and design a 456 MW hydropower project at Upper-Tamakoshi in Nepal. Bridges & Structures
This division manufactures steel superstructure, including girders, hull blocks and other parts of bridges & flyovers for large bridges for railways. The company has recently started delivering steel girders for railway bridges in Bangladesh through IRCON International.
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Texmaco Rail and Engineering Ltd.
Steel foundry - Installed Capacity & Capacity Utilisation:
This unit has a manufacturing capacity of 30,000 TPA, based at Belgharia in West Bengal which caters to the foundry/casting requirements of the rolling stock segment such as bogies & couplers, which are a part of wagons and CMS crossings. Texmaco is expanding its presence in export markets (North America), as it has put advanced mechanics such as PLC controlled moulding lines and sand systems and has also started supplying high tensile centre buffer coupler, which was earlier imported. Exhibit: Steel Foundry - (Installed Capacity & Capacity Utilisation)
32000 80% 75% 65% 24000 61% 59% 59% 60% 60%
16000 41% 40%
27% 8000 20%
8006 30000 18313 30000 17837 30000 17840 30000 30000 12193 30000 18000 30000 19500 30000 22500 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Steel Foundry Installed Capacity (TPA) Production (TPA) Capacity Utilisation (%)
Source: Company, SKP Research
Key competitors and customers:
IR is the primary customer followed by private players such as ACC, UltraTech Cement, Bulk Cement (India), Vedanta Aluminium, Hindalco, National Aluminium, BALCO and NTPC. Texmaco operates in a competitive environment with ~15 peers. The industry has capacity of ~25,000 wagons per year.
Exhibit: Key competitors and customers
Segment Key competitors Key customers Indian Railways, ACC, UltraTech Titagarh Wagons, Hindustan Cement, Bulk Cement (India), Vedanta Wagons Engineering Industries, Modern Aluminium, Hindalco, National Industries, Besco, Jessop & Company, Aluminium, BALCO, NTPC Jupiter Wagons
EMU coaches Indian Railways
Hydro- Alstom (Portugal), Technoprome Export NHPC, NTPC, Tehri Power, SJVN, mechanical (Russia), Andritz Hydro (Austria), Om Metals Infraprojects and Precision Mitsubishi Heavy equipment Technofab
Larsen & Toubro, Bridge and Roof India IRCON, Bangladesh Railways, Sri Bridges & and BBJ Construction Lanka Railways
structures Source: Company, SKP Research
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Texmaco Rail and Engineering Ltd.
Collaboration with MNCs
Texmaco has expanded its business by entering into strategic collaborations with renowned multi-national companies such as Touax Rail, France and Wabtec International Inc., U.S.A which have diverse experience in the rail industry.
Its joint venture company Touax Texmaco Railcar Leading Private Limited with Touax Rail (a French group) has been set up for leasing of wagons. In addition, Texmaco recently entered into a joint venture arrangement with Wabtec International Inc. which is a leading global provider of products for freight rail cars, passenger transit cars and locomotives, including brake equipment, electronics (including train control), doors, couplers, bogies, pantographs and engine rebuilds to develop market and sell products for the railway industry. Exhibit: Collaborations & JVs
Name Equity Stake Purpose Commencement Date 50:50 JV company, with JV with Touax Rail Touax Rail (a French Leasing wagons group) for leasing wagons
To provide Indian JV arrangement Railways with the latest Construction has JV with Wabtec with Wabtec safety and started in International International (US) control equipment & Q1FY16. systems Technical tie-up to Technical tie-up manufacture EMU with Kawasaki of coaches with Kawasaki of Japan Japan
Source: Company, SKP Research
Acquisition of Kalindee Rail:
Texmaco acquired a controlling stake in Kalindee Rail Nirman, which is in the business of providing EPC services to IR and metros, especially in the field of signalling, track, telecommunications and auto fare collection machines. It has leadership position in ballastless tracks (for metro lines) and has strong presence in signalling & track laying (a key thrust area for railways).Therefore,the company has made deeper inroads in the value chain of railways. Kalindee will be able to bid for higher value project given the strong financial backing of Texmaco.Higher value orders are margins accretive as this space is less crowded (2-3 players as against 10-15 players in lower value orders).
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Texmaco Rail and Engineering Ltd.
Exhibit: Kalindee – a turnkey solutions provider
Preparation of Supply of all Design Engineering Materials & Installation Drawings Equipments
Testing Commissioning Documentation Training
Maintenance & Warranty Services
Source: Company, SKP Research
Kalindee undertakes total turnkey projects, which include design, preparation of engineering drawings, supply of all materials & equipment, installation, testing, training, commissioning, documentation, maintenance and warranty services.
Kalindee supplies optical fiber and radio wireless systems, including wide & local area networking, GSM systems and mobile train radio.
For industrial units that need their own railway facilities and gauge conversion, Kalindee provides track construction on a turnkey basis.
Exhibit: Business combination of TEXRAIL and Kalindee
Service Kalindee Texmaco Combined Identity Planning / Designing News Lines Y Y Embankment & Earth-work Y Y
Bridges and Structures Y Y
Track Materials- Crossings Y Y
Track Linking – Lines & Witches Y Y
Electrification Y Y
Rail Signaling Y Y
Wagons, EMU and Bogies Y Y Passenger Automation Y Y Telecommunication & Safety Systems Y Y
Source: Company, SKP Research Exhibit: Income Statement of Kalindee Rail Nirman Ltd. Figures in Rs Million
Particulars FY13 FY14 FY15 FY16 FY17E FY18E
Net Sales 2,572.2 2,539.9 3,085.2 3,722.7 4,653.4 6,049.4 Growth (%) 5.3% -1.3% 21.5% 20.7% 25.0% 30.0%
EBITDA 292.6 21.2 203.6 336.2 442.1 589.8 EBITDA Margins (%) 11.4% 0.8% 6.6% 9.0% 9.5% 9.8%
Profit After Tax (PAT) 81.0 -71.0 -97.3 8.6 72.1 192.8 Growth (%) 5.4% NA NA -108.8% 738.0% 167.5% Source: Company, SKP Research
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Texmaco Rail and Engineering Ltd.
Acquisition of Bright Power: Moving into incremental segments to cater Railways demand:
Texmaco acquired controling stake in Bright Power Projects (India), an EPC company, specializing in over head electrification (OHE) solutions for IR. The enterprise value of the deal is ~Rs 1 bn which is to be funded through internal accruals. Bright Power had a net turnover of Rs 782 mn in FY15. Taking a cue from the proposed amalgamation of Kalindee Rail with Texmaco, we presume, even Bright Power, a much smaller company, will eventually get merged with Texmaco.
Investment Rationale
Well placed to benefit from Indian Railways growth drive,Volume growth to pick up:
Contrary to the subdued demand of ~5,000-6,000 wagons p.a. by IR , the sector is all set to get boost by massive pent-up demand in the replacement market and introduction of ~10% -20% freight loading through 25-tonne axle-load wagons in FY17 which will augment higher demand for wagons. Freight traffic growth in past years has moved in tandem with GDP growth. Pickup in freight traffic linked to rising economic and industrial activity could add another ~4-5% to wagon demand. Going forward, we expect, IR requirement to be ~10-12k wagons per year.
Texmaco is the largest wagon manufacturer in India with a capacity of ~10,000 wagons (vs. annual industry capacity of 25,000-30,000 units). Over past two years, company’s financials have been affected due to insufficient orders from both, IR and private players. Texmaco is best placed to benefit from growth drive of IR with low cost infrastructure at its manufacturing facilities which would enable it to sustain aggressive price competition in this segment. Its facility in Kolkata is spread over 2mn sqft. of factor shed space and is a one- stop facility for multitude of products. It can concurrently manufacture multiple types of wagons given the multiple lines and benefits from low cost of production and significant scope to scale up.
Defence sector has opened a new avenue of wagon demand for the company. Enquiries from the private sector too have started after a lull of 2-3 years. With the expected pick-up of industrial demand over the next 2-3 quarters, demand from this segment will further inflate overall demand for wagons.
Over the last 2 years, the company has been able to maintain an average utilization of ~38% due to paucity of order. With improvement in demand from the defence and private sectors and expected improvement in orders from IR, we expect utilization to improve to ~52% in FY17E (3,538 wagons) and by ~56% in FY18E (3,800 wagons). This would lead to a volume CAGR of ~11% during FY16-18E.
Exhibit: Split between IR and non-IR wagon dispatches
4500
3500 549 517
1202 2500 2300 2200 200
1500 2550 3255 2954 671 2674
500 1862 1500 1338 550 161 -500 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
IR - Production (Nos) NON- IR - Production (Nos)
Source: Company, SKP Research
SKP Securities Ltd www.skpmoneywise.com Page 13 of 22
Texmaco Rail and Engineering Ltd.
Wagons revenue expected to grow at a CAGR of ~13.6% over FY16-18E
Notwithstanding muted wagon revenue growth over the last 2 years, we believe, ordering to resume with some level of normalcy over next 2-3 years. It has lately secured an order of 1,338 wagons from IR and expected to win a sizeable order (1,200-1,500 wagons) over the next one year.Going forward,we expect wagon revenue to grow at a CAGR of ~13.6% during FY16-18E on the back of a higher capacity utilization and improvement in operating margins.
Exhibit: Wagon Revenue and Blended Realizations
10000 120 Blended Realizatio (Rs Mn/ Wagon) 2.0 90 2.0 85 2.0 8000 1.9 1.9 60 1.9 6000 30
12 15 12 0 4000 -6 4.0 1.6
7735
7568
7201 6915 6760 -30 5995 2000 -56 -3 -60 3323 3236
0 -90
FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Wagon Revenue (Rs Mn) Growth (%)
Source: Company, SKP Research Focus on Non-wagon (value added) businesses to aid growth
TEXRAIL has significant presence in non-wagon businesses (steel foundry and hydro mechanical equipment), which are expected to offset any slow orders from IR. It has also forayed into wagon leasing (through 100% Hi-tech subsidiary), EMU coaches (received pilot order) and loco bogies frames (through JV) and plans to enhance presence in rail safety, which bodes well for company’s growth. Further, robust demand of steel foundry products arising from exports (North America) augurs well.
Given the technical knowhow strength and infrastructure, a move into defence is a matter of time. Any Global company establishing its base in India would like to have partner like Texmaco. Defence can be the key revenue driver for the company in years to come.
Exhibit: Steel Foundry Revenue and Growth (%)
3000 60 38 2500 19 15 13 30 2000 3 5 1500 0
1000 2471 2082 1987 1968 1914 -35 -30 1660
500 1440 1270 0 -60 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Steel Foundry Revenue (Rs Mn) Growth (%)
Source: Company, SKP Research
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Texmaco Rail and Engineering Ltd.
Strong Financial performance: Sales CAGR of ~15% during FY16-18E
Key drivers for revenue growth for Texmaco going forward will be (1) Government’s railway infrastructure development thrust, (2) increase in freight market share of the rail segment and (3) value added growth opportunities led by its foundry business, coaches, track laying, and project capabilities and (4) expected future foray into defense.
We expect Texmaco to report a revenue CAGR of ~15% over FY16-FY18E backed by improvement in the domestic rail wagon segment, as higher ordering from both IR and the private sector fuels a volume recovery. The heavy engineering segment is expected to record a revenue CAGR of ~14% during FY16-18E.
Exhibit: Expect revenue CAGR of ~15% over FY16-FY18E
10000 80 69 60 8000 40
6000 20 14 8 14 4000 -4 0 -18 -20 2000 -40 -46 9318 7603 8248 4446 4278 7245 8262 9389 0 -60
FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Net sales (Rs Mn) Growth (%)
Source: Company, SKP Research
EBITDA of 3x in FY18E over FY16, Margin improvement to take time
We expect an EBITDA CAGR of ~80% during FY16-18E, due to low base effect and driven by volume growth. We expect incremental volumes growth will lead to higher absorption of fixed cost resulting overall margin improvement for the company. Over FY13-FY16, muted volumes (slack demand from coal and iron ore) and depressed realisations due to competitive pricing has severely affected margins as operating leverage turned negative.
With more than 25,000 wagons capacity in the industry, every railway wagon producer is underutilizing its capacity which is resulting in predatory pricing. Margin for the industry can only improve with higher volume, by absorbing fixed cost.Realization on wagons is in the range of Rs 2mn-3.8mn depending on whether the product is being sold to IR or to private operators. IR wagons are priced much lower as the company gets raw material in the form of wheel-sets, bearings and steel from IR itself.
However, as volumes gather momentum (IR & Non IR), driving up operating leverage, and change in product mix (forging and exports); we expect margins to steadily recover to ~5- 6%+ over FY16-FY18E. Though, it would still be below ~17-18% margin enjoyed by the company during FY11-12.
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Texmaco Rail and Engineering Ltd.
Exhibit: EBITDA of 3x in FY18E over FY16
1800 18.6% 21.0% 17.2% 18.0% 1500 15.2% EBITDA margin to witness a V- shaped recovery 15.0% 1200 12.0% 900 6.6% 9.0% 600 5.6%
176 6.0% 195 2.6% 300 3.0% 463 622 1729 1310 1251 4.0% 4.6% 0 0.0% 192 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
EBITDA (Rs Mn) EBITDA Margin %
Source: Company, SKP Research
PAT to grow at a CAGR of ~71% during FY16-18E
Texmaco has a strong balance sheet with net cash of Rs.0.4 bn as on FY15 end. The company raised ~Rs. 2.9bn in FY15, which provides it the flexibility to pursue in-organic growth or to infuse money to scale up business of Kalindee.With stronger revenues and margins over FY16-FY18, net profit growth in FY18E is expected to be Rs 0.63bn from the FY16 levels of RS.0.22bn, driven by higher operating profit.
Exhibit: PAT of 3x in FY18E over FY16
1300 14.0% 13.0% 12.2% 12.0% 1000 11.4% 6.6% 10.0% 700 8.0%
400 170 5.6% 6.0% 3.8% 137 216 4.0% 3.1% 3.0% 930 943 469 633 100 1215 2.0%
FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E -200 0.0%
PAT (Rs Mn) PAT Margin (%)
Source: Company, SKP Research
De-leveraging balance sheet with low capex commitment:
Over the last few years, Texmaco has reduced its net debt from Rs 0.94 bn in FY11 to Rs 0.80 bn in FY16, bringing down net D/E ratio significantly to 0.1x in FY15. Going forward, we do not expect any substantial increase in leverage ratio.
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Texmaco Rail and Engineering Ltd.
Exhibit: Debt/Equity and Interest Coverage Ratio
25.0 22.4 0.3 0.2 20.0 0.2 0.2 0.2 15.0 0.2 0.1 9.7 0.1 10.9 0.1 0.1 0.1 10.0 0.1
5.0 2.7 0.1 0.6 0.4 0.5 3.9 0.0 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17E FY18E
Interest Coverage Ratio (X) Debt/Equity (X)
Source: Company, SKP Research . Peer Comparison:
Exhibit: Peer Valuation Revenue PAT Mcap Revenue (Rs Mn) CAGR EBITDA Margin (%) PAT (Rs Mn) CAGR (Rs (%) FY14- (%) FY14- Mn) Company FY14 FY15 FY16 16 FY14 FY15 FY16 FY14 FY15 FY16 16 Titagarh Wagons Ltd 10500 6241 7611 9593 24.0% 0.6% 3.3% 4.2% -89 -33 -252 NA
Texmaco Rail & Engineering 19778 4446 4278 7245 27.7% 4.0% 4.6% 2.6% 170 137 216 12.8% Source: Company, SKP Research
ROE (%) P/E P/Bv EV/EBITDA Company FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Titagarh Wagons Ltd -1.7% -1.7% -3.4% 60.5x 117.2x 164.9x 0.4x 1.9x 1.5x 8.9x 22.4x 14.1x
Texmaco Rail & Engineering 3.0% 1.9% 2.3% 51.0x 208.0x 100.4x 1.5x 3.2x 2.4x 54.5x 150.7x 118.4x Source: Company, SKP Research
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Texmaco Rail and Engineering Ltd.
Valuations
With acquisition of Kalindee Rail and Bright Power, Texmaco is well placed to capitalize on the opportunities provided by increasing spends on rail infrastructure coupled with company’s strategy to diversify its revenue stream by building technical collaborations with global players and strong balance sheet with net cash (after factoring current investments)to pursue organic and in-organic growth.
We expect Texmaco to witness the full impact of recovery from FY18 lead by higher volumegrowth amid improved demand for wagons from IR & private players coupled with diversification benefits and growth from steel casting & hydro-mechanical segment, due to focus on exports.
We have valued the stock on the basis of P/E. In view of the sharp correction in the share price to Rs. 94 now, after rallying to a 52 week high of Rs 154 recently, we recommend a BUY on the stock with a target price of Rs. 119/- (26% upside) in 15 months.
Exhibit: Valuation Particulars FY18E Total Net Profit (Rs Mn) 1,077.1 - TEXRAIL (Rs Mn) 955.4 - Kalindee Rail (Rs Mn) 121.7 No of Shares - Post Amalgamation of Kalindee Rail (Mn) 227.4 EPS (Rs) 4.7 Target Multiple (x) 25x Target Price Per Share (INR) 118.4 Source: SKP Research
Risks & Concerns Dependent on the Indian Railways for a large portion of its wagon orders
Currently IR provides a majority of revenue for the company. If IR reduces its volume of business with Texmaco, including an amendment of the relevant policies to favour public sector enterprises, or a withdrawal of the programs and policies beneficial to the private sector, or if the IR do not release any new wagon orders, thenCompany’s business, financial condition, results of operations and prospects maybe adversely affected. Competitive pressure may lead to lower margin
Wagon manufacturing industry has 15 players with underutilised capacity. Cost competitiveness coupled with meagre ordering environment can hurt Texmaco’s order book and profitability. Kalindee Rail acquisition may not lead to desired results
Kalindee Rail acquisition will enhance Texmaco’s portfolio (it will enter into track laying, signalling & telecommunications), it requires huge working capital and eventually the company would have to do capex in this business. Furthermore, this segment is also highly competitive, and any delay in receiving orders or getting low margin orders may adversely affect return ratios.
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Texmaco Rail and Engineering Ltd.
Q4FY16 Result Update
Exhibit: Q4FY16 Result Review Figs. in Rs M illion
Particulars Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%) FY16 FY15 YoY (%)
Net Sales 2,602.3 1,766.9 47.3% 3,243.7 -19.8% 9,171.3 5,595.6 63.9%
Other Operating Income 8.3 66.4 9.7 35.0 107.6
Total Income 2,287.3 1,444.9 58.3% 2,547.9 -10.2% 7,280.1 4,385.8 66.0%
Expenditure 2,188.3 1,318.6 66.0% 2,427.0 -9.8% 7,087.6 4,215.5 68.1%
Material Consumed 1,711.7 1,278.9 33.8% 2,178.3 -21.4% 6,032.9 3,117.1 93.5%
(as a % of Total Income) 74.8% 88.5% 85.5% 82.9% 71.1%
Power & Fuel 111.8 108.8 2.8% 115.6 -3.3% 422.3 350.2 20.6%
(as a % of Total Income) 4.9% 7.5% 4.5% 5.8% 8.0% Changes in Inventories & WIP 95.9 (302.0) -131.7% (107.5) -189.1% (264.2) (63.0) 319.2%
(as a % of Total Income) 4.2% -20.9% -4.2% -3.6% -1.4%
Employees Cost 124.3 109.8 13.3% 127.7 -2.6% 486.9 453.2 7.4%
(as a % of Total Income) 5.4% 7.6% 5.0% 6.7% 10.3%
Other Expenses 144.6 123.1 17.5% 113.1 27.9% 409.7 358.0 14.4%
(as a % of Total Income) 6.3% 8.5% 4.4% 5.6% 8.2%
EBITDA 99.0 126.3 -21.6% 120.9 -18.2% 192.5 170.3 13.0%
EBITDA M argin (%) 4.3% 8.7% (441)Bps 4.7% (42)Bps 2.6% 4.6% (196)Bps
Depreciation 32.9 47.3 -30.4% 31.6 4.2% 124.5 149.4 -16.6%
EBIT 66.0 78.9 -16.4% 89.3 -26.1% 68.0 20.9 225.1%
Other Income 125.4 102.1 22.8% 66.3 89.3% 320.1 236.9 35.1%
Interest Expense 32.5 23.8 36.8% 35.8 -9.3% 126.1 95.6 31.9% Profit Before Tax 158.9 157.3 1.0% 119.7 32.8% 262.0 162.3 61.5%
Income Tax 45.3 24.9 81.9% 46.1 24.9 85.2%
Effective Tax Rate (%) 28.5% 15.8% - 0.0% - 17.6% 15.3% -
Profit After Tax (PAT) 113.7 132.4 -14.2% 119.7 -5.1% 215.9 137.4
PAT M argins (%) 5.0% 9.2% (420)Bps 4.70% 27 Bps 2.97% 3.13% (17)Bps Diluted EPS 0.5 0.6 -14.2% 0.6 -5.1% 1.03 0.65 57.2%
Source: Company Data, SKP Research
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Texmaco Rail and Engineering Ltd.
Exhibit: Income Statement Figures in INR Million Exhibit: Balance Sheet Figures in INR Million
Particulars FY15 FY16 FY17E FY18E Particulars FY15 FY16 FY17E FY18E
Total Income 4,385.8 7,280.1 8,427.2 9,576.5 Share Capital 210.1 210.3 210.3 210.3 Growth (%) -1.7% 66.0% 15.8% 13.6% Reserve & Surplus 8,724.1 8,899.2 9,295.2 9,855.9 Expenditure 4,190.4 7,088.6 7,964.7 8,954.9 Shareholders Funds 8,934.1 9,109.5 9,505.5 10,066.1 Material Cost 2,720.3 6,032.9 6,573.2 7,182.4 Total Debt 1,038.2 1,014.1 997.9 987.7 Traded goods -63.0 -264.2 -210.7 -143.6 Other current liabilities 1,403.3 1,446.2 1,489.5 1,534.2 Employee Cost 453.2 486.9 547.8 670.4 Liabilities & Provisions 2,031.0 2,833.6 2,524.4 2,597.3 Admin & Other Exp. 1,079.8 832.0 1,053.4 1,244.9 Deferred Tax Liabilities 75.7 84.7 84.7 84.7 EBITDA 195.4 191.5 462.6 621.5 Total Liabilities 13,482.4 14,488.0 14,812.3 15,480.4 Depreciation 149.4 124.5 132.4 139.4 Net Block inc. Capital WIP 2,111.8 2,177.8 2,245.4 2,307.0 EBIT 46.0 67.0 330.1 482.1 Deferred Tax (Net) - - - - Other Income 236.9 321.0 380.1 431.9 Non-Current Assets - - - - Interest Expense 120.7 126.1 124.5 122.6 Inventories 2,393.6 2,748.3 3,045.6 3,332.2 Profit Before Tax (PBT) 162.2 262.0 585.6 791.4 Sundry Debtors 1,497.7 2,243.4 2,148.0 2,224.9 Income Tax -24.9 -46.1 -117.1 -158.3 Cash & Bank Balance 399.4 206.2 328.9 334.1 Profit After Tax (PAT) 137.4 215.9 468.5 633.1 Other Current Assets 18.7 39.5 39.5 39.5 Minority Interest - - - - Loans and Advances 964.7 1,656.5 1,905.2 1,852.8 Adj PAT (Post Minority) 137.4 215.9 468.5 633.1 Non Current Investment 1,440.0 2,077.8 1,817.6 1,877.7 Growth (%) -19.1% 57.2% 117.0% 35.1% Current Investment 4,656.5 3,338.6 3,282.1 3,512.3 Diluted EPS 0.7 1.0 2.2 3.0 Total Assets 13,482.4 14,488.0 14,812.3 15,480.4
Exhibit: Cash Flow Statement Figures in INR Million Exhibit: Ratio Analysis Particulars FY15 FY16 FY17E FY18E Particulars FY15 FY16 FY17E FY18E Profit Before Tax (PBT) 162.2 262.0 585.6 791.4 Earning Ratios (%) Depreciation 149.4 124.5 132.4 139.4 EBITDA Margin (%) 4.6% 2.6% 5.6% 6.6% Finance Costs 120.7 126.1 124.5 122.6 PAT Margins (%) 3.1% 3.0% 5.6% 6.6% Chg. in Working Capital 588.8 533.2 627.4 274.5 ROCE (%) 0.4% 0.5% 2.3% 3.2% Direct Taxes Paid (34.5) (46.1) (117.1) (158.3) ROE (%) 1.8% 2.3% 4.9% 6.2% Other Charges - - - - Per Share Data (INR) Operating Cash Flows 408.5 476.8 555.8 444.6 Diluted EPS 0.7 1.0 2.2 3.0 Capital Expenditure (183.1) (125.2) 67.6 60.6 Cash EPS (CEPS) 1.5 1.6 2.9 3.7 Investments (3,174.8) 286.8 - - BVPS 46.6 43.3 45.3 47.9 Others 40.5 (20.1) (24.5) (24.5) Valuation Ratios (x) Investing Cash Flows (3,317.3) (412.8) 43.2 36.1 P/E 208.0 91.7 42.2 31.2 Changes in Equity 28.0 - - - Price/BVPS 3.2 2.2 2.1 2.0 Inc / (Dec) in Debt 54.3 (70.8) (279.2) (280.5) EV/Sales 6.7 2.9 2.4 2.2 Dividend Paid (inc tax) (53.1) (60.5) (72.5) (72.5) EV/EBITDA 150.7 108.5 44.6 33.2
Financing Cash Flows 2,820.1 (257.3) (476.2) (475.6) Dividend Yield (%) 0.2% 0.2% 0.3% 0.3% Chg. in Cash & Cash Eqv (88.8) (193.2) 122.7 5.1 Balance Sheet Ratios Opening Cash Balance 134.5 399.4 206.2 328.9 Debt - Equity 0.1 0.1 0.1 0.1 Balances with Banks 353.8 - - - Current Ratio 5.3 3.9 4.5 4.7 Closing Cash Balance 399.4 206.2 328.9 334.1 Fixed Asset Turn. Ratios 1.0 1.7 1.9 2.1 Source: Company, SKP Research
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Texmaco Rail and Engineering Ltd.
Notes:
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Texmaco Rail and Engineering Ltd.
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