Texmaco Rail & Engineering Limited · NSE:TEXRAIL
Texmaco Rail & Engineering — Investor Presentation (March 2024)
40 slides from Texmaco Rail & Engineering's investor presentation, March 2024
Slide 1: Investor presentation March 2024
Investor presentation March 2024 Embracing Sustainable Transformation 1
Slide 2: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 3: Adventz Group: USD 4bn conglomerate
Adventz Group: USD 4bn conglomerate Saroj Kumar Poddar, Executive Chairman Akshay Poddar, Non-executive Director Agri-Business Engg. & Infrastructure Emerging Lifestyles Services • Zuari Agro Chemicals • Texmaco Rail & • Zuari Infraworld India • Zuari Finserv Ltd. Ltd. Engineering Ltd. Ltd. • Advent
Slide 4: Texmaco: Snapshot of key business verticals
Texmaco: Snapshot of key business verticals Freight cars Steel Foundry Component systems & Rail Infra & Others solutions • Diverse range of rail freight • Largest internationally • Global sourcing partner for • Over-Head Electrification solutions accredited foundry in India precision fabricated part
Slide 5: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 6: New Texmaco
New Texmaco 01 04 Well-positioned to capitalize on Access to world class technology the highest ever capital outlay by from global partnerships Indian Railways 02 05 Full-suite wagon building De-risked business model - and component focused on manufacturing and manufacturing facilities, with export
Slide 7: The Great Rail Infra push
The Great Rail Infra push National Rail Plan1 Capital outlay2 Key projects Increase modal share of IR Rolling stock INR 1.5 lakh cr in freight from 26% to INR 4.8 lakh cr 45% by 2030 Dedicated Freight Corridor (DFC)1 (Wagons 0.9 lakh cr) Target freight volumes INR 2.4 lakh cr Terminals from 1.5bn to
Slide 8: Delivering freight cars, for the needs of many sectors
Delivering freight cars, for the needs of many sectors 20+ types of freight cars - supplied to core sectors of the nation … Agri / Food Auto Steel Cement Alumina / Oil Fly Ash Powders Iron ore Container LPG Coal Milk Defense … and many more Over 50,000+ freight cars supplied over Technically equippe
Slide 9: Near-term revenue visibility from order-book position
Near-term revenue visibility from order-book position Strong trend of ramp-up production Strong order-book of freight cars (Dec’23) 1,847 Private 1,637 18% 1,413 1,331 1 1,077 INR 5,750 482 Crs 82% Indian 127 Railways Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 Q1 FY'24 Q2 FY'24 Q3 FY'24 No. of Freight Cars
Slide 10: One of the largest supplier of freight cars
One of the largest supplier of freight cars 12,000+ VUs sold to Indian 7,000+ VUs sold to private 550+ VUs exported to Railways in over 10 years parties in 10 years foreign markets over the past 10 years Gondola Wagon for Iron Ore (Liberia) Tank Wagon (Sri Lanka) Oil Tank Wagon (Bangladesh) Mi
Slide 11: Full-suite manufacturing facilities, and infrastructure
Full-suite manufacturing facilities, and infrastructure Six 2 wagon Total ~200-acre Effective manufacturing Strategic location manufacturing facilities expansion facilities facilities 5 located at Connectivity to 12 Bays for ~114 acres at Expansion of Agarpara, Belgharia, major highways and producti
Slide 12: Largest and internationally approved steel foundry in India
Largest and internationally approved steel foundry in India Capacity of 42,000 tones p.a., currently running at near 100% utilization Versatile process with demonstrated quality & capability Industry leading Infrastructure base Railway Bogie, Coupler & Crossing mfg. facilities Two Class A Foundrie
Slide 13: Sole exporter of railway castings from India
Sole exporter of railway castings from India Export Turnover (INR in Crs) Strong moat of technical capabilities and certifications Only Indian company certified by Association of American Railroad (AAR) 140 114 112 Exports to niche markets – USA, Australia, and Eurasia, etc. 92 95 77 Manufactu
Slide 14: Partnerships with Global leaders
Partnerships with Global leaders Hi-tech products • TMX® Bogie mounted brake systems - durable, Wabtec lightweight materials, freely suspended systems Texmaco • Low & High Friction Brake blocks for Freight, Loco & Coach applications • Draft Gear and Friction Wedges Leasing solutions • Serves a diver
Slide 15: Component systems & Solutions
Component systems & Solutions Australia Mozambique Kazakhstan Spreading wings in international markets Large equipment base, enabling automation and precision Hi-tech components turnover (INR cr) Surge in global demand for high standard components; supply- chain disruptions create new and large
Slide 16: Direction as we move forward
Direction as we move forward Focus on Exports Markets for Railway Steel Selective acquisitions for backward and Castings forward integration Look‐out for inorganic growth opportunities Enter New Segments of Railway Components in Rail Sector for Domestic and Export Market Capitalize on the Indian rai
Slide 17: TexERM
TexERM • TexERM* is our Brand for Enterprise Risk Management across the Corporation • Policy & Documentation are ready to launch • Core group and Departmental Champions identified • Project approach on Risk areas initiated under Chief Risk Officer (CRO).
Slide 18: Environment, Social & Governance @ Texmaco
Environment, Social & Governance @ Texmaco • World Bank approved ESG framework launched • Impact assessment & Severity Audited with Materiality under process • 5‐year horizon plan to create positive impact on Environment, Social factors and overall Governance
Slide 19: A De-risked business model
A De-risked business model Key risks Risk mitigation Focus on areas of core-competence with Operational risks Full-spectrum vs. specialized experience of 70+ years Full-suite facilities; Management bandwidth; Execution risks Manufacturing and vendor ecosystem Gradual shift towards in-house manufactu
Slide 20: Enablers to change management as we restructure
Enablers to change management as we restructure 02 03 04 Focus areas Management Efficiency Monitoring Identify Strategic Infusion of experienced Rationalization of Equip management Business Units (SBUs) talent from within & product and process with tools to monitor outside the industry and execute F
Slide 21: Professionals leading change management
Professionals leading change management 50+ 25+ 16+ 35+ yrs exp yrs exp yrs exp yrs exp Indrajit Mookerjee Sudipta Mukherjee Hemant Bhuwania Avijit Mitra Executive Director and Vice Dy. Managing Director Chief Financial Officer Chief Executive Officer (Steel Foundry) Chairman • B.Tech in Chemical •
Slide 22: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 23: Future ready company, in a comprehensive revamp
Future ready company, in a comprehensive revamp 01 02 03 04 Streamlining Optimizing Enabling Demerging non- operations revenue mix transformation core businesses Re-engineer existing Increase share of Re-organized key Kalindee product lines exports and sales to management (Track laying, Signaling, M
Slide 24: Strong growth visibility - existing and future
Strong growth visibility - existing and future IR plans to procure 1,50,000 Won its largest ever order of freight cars by 2025 20,000+ freight cars from Indian Railways, execution underway Texmaco augmenting 3-5x growth in export of existing human capital and components and railway expand on technol
Slide 25: Cost reduction drive
Cost reduction drive Project costs Standardization Sourcing Inventory Reorganization management Process Creation of Renegotiation of Inventory Reorganization engineering by standard existing supplier reduction with and having identifying definitions and contracts based tie ups and specific Job role
Slide 26: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 27: Snapshot of recent financial performance (9m FY'24)
Snapshot of recent financial performance (9m FY’24) Demonstrated growth across revenue and profitability Revenue from Operations (INR Crs) Status of order-book (as of Dec’23) Freight Cars (67%) 2,358 Infra ‐ Rail & Green Energy (13%) 1,408 68% YoY ~INR Infra ‐ Electrical (10%) 8,517 growth Crs Steel
Slide 28: Overview of key financial metrics
Overview of key financial metrics Total Revenue (INR Crs) Split of Revenue (in %, for FY’23) 2,270 2,408 Freight Cars (56%) 1,853 1,714 1,644 Rail Infra & Others (33%) INR 2,270 Crs Steel Foundry (10%) Components Systems & Solutions (1%) FY 20 FY 21 FY 22 FY 23 9m FY 24 EBIDTA (INR Crs) 1 PBT (INR C
Slide 29: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 30: Awards and accolades
Awards and accolades • ISO 9001: 2015. ISO:14001, ISO:45001 certfied by Berue Veritus • AAR M 1003, M201, M210 & M215 by Association of American Railroads. • Product and Facility Certified by Ukrain Railroad. • DSIR, Govt. Of India recognised In house R&D Unit. • Certified Export House recognised by
Slide 31: Certified manufacturing process and facilities
Certified manufacturing process and facilities Quality management system ISO 9001 : 2015 Infrastructure & Process AAR M-1003 Environmental Management System ISO 14001: 2015 Certified Research Designs & Facilities and manufacturing Standards end-product Occupational health & processes RDSO certificat
Slide 32: Freight cars for export market
Freight cars for export market Gondola Wagon Tank Wagon (Sri Lanka) Oil Tank Wagon (Liberia) For Iron Ore (Bangladesh) Mineral Wagon (Ghana) Tank car for transport of MG Container flat Phosphoric Acid (Senegal) wagon for Mali Covered cars with sliding Open side discharge cars for doors for Zambian r
Slide 33: Freight cars for export market (cont'd)
Freight cars for export market (cont’d) Open hopper side discharge Covered side discharge hopper car Covered cars with sliding cars for Bangladesh railway for Bangladesh railway doors for Uganda railways Covered cars with sliding doors Low sided flat cars for Hungarian Covered car with sliding doors
Slide 34: Loco shell & fabricated bogies
Loco shell & fabricated bogies Loco Shells to Indian Railways Loco Bogie Frame- Queensland Railways Flexi Curve Loco Bogie- Mozambique Flexi Curve Loco Bogie- Mozambique Loco Bogie Frame- Queensland Railways LHB Bogies - Indian Rlys. LBogies for Bangalore Metro, through BEML
Slide 35: Steel Foundry
Steel Foundry Kolkata & Raipur units
Slide 36: Railway components
Railway components The plant The products
Slide 37: Component business (Hi-tech unit)
Component business (Hi-tech unit)
Slide 38: Export – Hi-tech engineering products
Export – Hi-tech engineering products Kazakhstan Australia Mozambique
Slide 39: Thank You
, 8 Texmaco adventz Thank You
Slide 40: Disclaimer
Disclaimer This investor presentation has been prepared by Texmaco Rail & Engineering Limited and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof), delivered or supplied,
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