Texmco Rail & Engineering said that its production of wagons was “adversely affected as a large order from the Railways for a new design” was “inoperative” for a major part of the March-June quarter.
According to sources, though order for 1010 BCNHL (covered heavy load bogie with air brake) wagons were issued in the middle of January, the final drawing was released in mid-June. The problem could be sorted out effectively in July at the manufacturing stage.
The company in its notes to the accounts for first quarter ended June 30 said: “The issues have since been resolved and the production is in full swing currently.” But it was a primary reason for drop in net profit to Rs 21.22 crore from Rs 33.65 crore in the Q1 of 2011-12.
Texmaco Rail, which signed an equal joint venture agreement with French group Touax Rail to foray into wagon leasing business, said the entity’s paid-up capital of Rs 25.30 crore was subscribed to early this month. Touax Texmaco Rail Car Private will now apply for licence to the railways for leasing business commencement.
The other 50:50 joint venture with UGL Rail of Australia for manufacture of locomotive bogie frames and wagons was scheduled to start production in October this year.
The company said the hydro mechanical engineering division bagged two orders worth Rs 134 crore recently.