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Braithwaite & Co , a wholly owned subsidiary of the Indian Railways, is looking to touch a turnover of ₹2,500 crore by FY25, up from ₹764 crore in FY22, backed by a steady demand across its various product portfolio. The company is looking to go for an initial public offering (IPO) post FY25, once it achieves the ₹2,500 crore turnover target.
According to Yatish Kumar, Chairman and Managing Director, Braithwaite, the company is likely to end the current fiscal with a turnover of ₹1,000 crore. Braithwaite, which is currently a Miniratna Category 1 company, is looking to upgrade into a Schedule A company by 2025 and then into a Navaratna company. It will then go for an IPO.
Order book position
“Our order book position has improved from around ₹600 crore in FY18 to close to ₹3,100 crore during the current fiscal. We hope to touch a turnover of ₹2,500 crore by FY25 and then we will look to go for an IPO,” Kumar said at a special session organised by the Merchants’ Chamber of Commerce & Industry here on Wednesday.
It is hopeful of touching an order book of close to ₹5000 crore by FY25.
Wagon manufacturing
The company, which was primarily focused on wagon manufacturing, has diversified its product basket and added more verticals to spread out the risk. Wagon manufacturing, which accounted for nearly 98 per cent of its turnover in 2018-19, has come down to close to 50 per cent at present.
Braithwaite is focusing on ONM (operations and maintenance) segment of various government facilities. This apart, it has forayed into several other verticals including construction of buildings, bridges, metal handling equipment, container manufacturing, foundry and solar segments.
“Earlier we used to make only wagons but then recently we created new verticals so that if there are losses in one business then we can offset it with other businesses,” he said.
The company has been able to bring down the ratio of overhead (fixed cost) to sales from a high of 32 per cent in FY18, to close to 7 per cent at present. It is hopeful of bringing it down further to 6 per cent by the end of this fiscal.
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