Texmaco Rail & Engineering Limited · NSE:TEXRAIL
Texmaco Rail & Engineering — Investor Presentation (September 2023)
37 slides from Texmaco Rail & Engineering's investor presentation, September 2023
Slide 1: Investor presentation September 2023
Investor presentation September 2023 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, Group Chairman Akshay Poddar, Non-executive & Non-independent Director Agri-Business Engg. & Infrastructure Emerging Lifestyles Services • Zuari Agro Chemicals •Texmaco Rail & • Zuari Infraworld India • Zuari Finserv Ltd. Ltd. Engineering Ltd.
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 State-of-the art component De-risked business model - manufacturing facilities, with focused on manufacturing and export capabilities
Slide 7: The Great Rail Infra push
The Great Rail Infra push National Rail Plan Capital outlay1 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 ton
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 (Jun’23) 63% 83% 78% 28% 20% 7% 1,413 1 Private 1,331 1,077 INR 54 bn Indian 482 Railways 127 80% Q1 FY'23 Q2 FY'23 Q3 FY'23 Q4 FY'23 Q1 FY'24 No. of freight cars mfg. (#) Capac
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 ✓ Two Class A Foundries in Kolkata & Raipur with Railway Bogie, Coupler
Slide 13: Sole exporter of railway castings from India
Sole exporter of railway castings from India Export Turnover (INR in cr) 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 Manufacturer an
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 State-of-the-art products from the Hi-tech mechanical and fabrication workshop Australia Mozambique Kazakhstan Large equipment base, enabling ✓ Spreading wings in international markets ✓ automation and precision Hi-tech components turnover (INR cr) Surge in global deman
Slide 16: 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 17: Enablers to change management as we restructure
Enablers to change management as we restructure 01 02 Management 03 04 Focus areas Efficiency Monitoring Identify Strategic Infusion of best talent from Rationalization of Equip management Business Units (SBUs) within & outside the product and process with tools to monitor industry and execute Focus
Slide 18: 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 & Vice Chairman Dy. Managing Director Chief Financial Officer Chief Executive Officer (Steel Foundry) • B.Tech in Chemical • Po
Slide 19: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 20: 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 21: 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 22: 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 23: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 24: Snapshot of recent financial performance (Q1 FY'24)
Snapshot of recent financial performance (Q1 FY’24) Demonstrated growth across revenue and profitability Revenue (INR cr) Status of order-book (as of Jun’23) 693 Freight cars (68%) 129% yoy Rail Infra & Others (19%) 303 ~INR growth 8,000 cr Steel foundry (6%) Components (1%) Q1 FY' 23 Q1 FY' 24 Othe
Slide 25: Overview of key financial metrics
Overview of key financial metrics Total revenue (INR cr) Split of Revenue (in %, for FY’23) 2,270 Freight cars (45%) 1,853 1,714 1,644 INR Rail Infra & Others (33%) 2,600 cr1 Steel foundry (21%) FY' 20 FY' 21 FY' 22 FY' 23 Component systems & solutions (1%) EBIDTA (INR cr) PBT (INR cr) 175 159 165 2
Slide 26: Table of contents
Table of contents Company Overview Key Business Highlights Growth outlook Key financials Annexure
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: Steel Foundry
Steel Foundry Kolkata & Raipur units
Slide 33: Railway components
Railway components The plant The products
Slide 34: Component business (Hi-tech unit)
Component business (Hi-tech unit)
Slide 35: Export – Hi-tech engineering products
Export – Hi-tech engineering products Kazakhstan Australia Mozambique
Slide 36: Thank You
Rall & Engineering Ltd. Thank You adventz
Slide 37: 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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