Texmaco Rail & Engineering shares ended lower after the company posted a net loss of Rs26.43cr in the quarter ended June 2020 as against a net profit of Rs10.23cr during the previous quarter ended June 2019.
The sales also declined 44.29% to Rs218.42cr in the quarter ended June 2020 as against Rs392.09cr during the previous quarter ended June 2019.
The stock ended at Rs27.05 down by Rs0.9 or 3.22% from its previous closing of Rs27.95 on the BSE.
The businesses of the Company during the 1st Quarter were severely affected by the ongoing COVID-19 pandemic and lockdown protocols. This had led to frequent disruptions to the operational activities of the Company. Due to complete lockdowns as announced by the Central / State Governments from time to time from 24th of March2020 to 3 May 2020, the Company in a phased manner could resume its operations only partially since 4th May,2020 complying with the government prescribed precautions/ guidelines to combat spread of COVID-19. This coupled with the impact of Cyclone ‘Amphan ‘, which swathed through Bengal during mid-May devastating in its wake the city of Kolkata, has dented the Q1 performance of the Company.
The continuing severity of COVID-19 is still impacting the businesses, albeit the Company is taking all possible actions to restore normalcy in its operations which has started showing its positive impact.
The overall impact of COVID-19 on the country is still severe with falling economic indicators including GDP, economy in doldrums and mounting deficit financing.
The Board of Directors (‘Board’) at its Meeting held on 8th September, 2020 has reviewed the progress of Rights Issue approved at its Meeting held on 26th April 2019 to ensure adequate resource availability for the Company. However, the overall slowdown in the worldwide economy coupled with the decline in market price of Equity Shares of the Company delayed the opening of the issue’ In view of the impracticality to open the issue now, the Board has decided not to proceed with the Rights Issue. However, having regard to the urgency of the fund requirements of the Company, the Board has approved issuance of Equity Shares of the Company by way of Preferential Issue to the promoters/ promoter Group for an amount not exceeding Rs. 200 Cr (Rupees Two Hundred Crore)’ The consolidated order book of the Company including its subsidiaries and JVs is Rs. 4,200 Cr (approx.).
