Texmaco Rail and Engineering Ltd (NSE: TEXRAIL) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Indrajit Mookerjee — Executive Vice Chairman
Sudipta Mukherjee — Managing Director
Kishore Kumar Razgariya — Chief Financial Officer
Analysts:
Unidentified Participant
Mohit Kumar — Analyst
Maitri Shah — Analyst
Devarsh Shah — Analyst
Parth Shah — Analyst
Rajesh Bhandari — Analyst
Akash Vora — Analyst
Sandeep Mukherjee — Analyst
Ashok Shah — Analyst
Vedant Sarda — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Tax Marco Real and Engineering Limited Q1 FY26 earnings conference call host hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your rushed on phone. Please note that this conference is now being recorded. I now hand the conference over to Mr. Mohit Kumar from ICICI Securities. Thank you.
And over to you, sir.
Mohit Kumar — Analyst
Yeah. Good morning Huda. Sorry. Thank you Huda. Good morning. On behalf of ICICI securities, we welcome you all to the Q1FY26 earnings call of TXMAC or Rail and Engineering Ltd. Today we have with us from the management Mr. Indrajit Mukherjee, Executive Director and Vice Chairman, Mr. Sudipta Mukherjee, Managing Director and Mr. Kishore Kumar Razgariya, Chief Financial Officer. Without much delay, I’ll now hand over the call to the management for opening remarks which will be followed by Q and A. Thank you. And over to you sir.
Indrajit Mookerjee — Executive Vice Chairman
Thank you. Mohit. This is Indrajit Mukherjee. Good morning everyone. I’m extremely pleased to welcome you to our earning calls for the quarter one FY26. I trust that by this time you had the opportunity to review our results and earning presentations filed with the Stock Exchange. I would like to make a few small comment to create the platform and then like to talk less and allow the interested investors to ask us questions. So my brief includes that we would like to say that during the Q1FY26 we reported a revenue from operations of 911 crores with an EBITDA of 79 crores reflecting a margin of 8.7%.
And profit after tax has been 29 crores which has a margin of 3.2% of the revenue. As of 30 June 2025, our order book stands at 7,053 crores providing a strong visibility for execution in the upcoming quarters. The other positive part is that this order book has combinations of prospects from various quarters and not only heavily tilted towards one business domain. The decline in revenue was primarily due to the short supply of wagon wheel sets from Indian Railways which has been incidentally a sector wide issue. And most of you may be aware that the shortage of the same and also a restriction on imports.
However, the situation is different now. I think we have gone over the crisis and with the improvement of supply, we expect revenues to normalize in future. Additionally Our Texmaco west, which was an acquired company, experienced also a temporary revenue dip in the last quarter because of certain holdup inspections by rdso. Happy to say that we are also over that right now, so we are in full steam. Texnaco delivered 1,815 freight cars during the quarter under review which is Q1 FY26 with the foundry division achieving sales volume of 8,667 metric ton supporting the production of rolling stock.
Despite challenges like wheel set disruptions, the quarter saw very strong order inflows from both India and international markets, further reinforcing our position in the freight roaring stock sector. The expansion of India’s rail infrastructure and logistics modernization continues to be supported by substantial public investment with projects such as multi tracking high density corridor expansions and the development of Gati Shakti cargo terminals driving freight capacity growth. These developments offer a very promising outlook for logistics and rail services. In line with these opportunities, texbaco have strengthened its relationship with Indian Railways, securing multiple orders and thus demonstrating the company’s commitment for support of the Indian Railways infrastructure growth.
Incidentally, this also falls in line with the railway plan which means the budget that they had for the current year where there has been large allocations of fund for the infrastructure development and we follow in line with our business opportunities fall in line with the same. Additionally significant orders for the manufacturing and supply of wagons reinforced our leadership in the freight rolling stock industry. This is a repeated achievement of ours to be the leader in supply of number of wagons to the country. The sustained capital expenditure by Indian Railways in traction freight and maintenance infrastructure further reinforces our demand.
On the international front, Texaco continued to expand. We have secured a major 20 years maintenance contract in Africa for the manufacture and supply of wagons along with traction related orders in the Middle East. These contracts are expected to enhance texmaco’s presence in the international markets aligning with its broader strategy for global expansion. Our newly formed Global Capability center in Delhi near Delhi also have been helping us in this cause towards development of wagons, new wagons, efficient wagons. Texnaco signed an MOU with Rail Vikasha Nigam Limited RVNL which is expected to enhance the company’s capabilities in manufacturing, infrastructure and technology driven projects.
This has been a major boost to us to our future aspirations. These types of contracts can be our strategic partnerships to expand our international footprint also with specific focus on Africa, Australia and the Middle east market and strengthen our presence across the freight, clothing stock value chain. Furthermore, in recognition of our strong financial performance and stable growth trajectory in the past, CARE the rating company have upgraded our long term bank facilities rating to KRA which is a stable rating and reaffirmed our short term rating at KRA1. These upgrades reflect the market’s confidence in our financial stability overall.
TexPACO is committed to delivering integrated system services and solutions with a strong safety orientation. Blending innovation with operations excellence to meet and exceed global standards. As we continue to leverage our operational strengths, strategic investments and global partnerships, we are well positioned to capture growth opportunities in both Indian and international markets. So, dear friends, I would like to conclude by saying that we look forward to a challenging as well as happy growth situations to continue barring these small aberrations. Having said that, I would like to conclude and thank you for your patient hearing. Mohit. We are open to questions.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touched on telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Abhinav from ICICI securities. Please go ahead.
Unidentified Participant
Good morning, sir. Thanks for the opportunity. My first question is. So, as you mentioned the decline in waggons was on account of shortage of bill set supply.
operator
Mr. Abhinav, are you there?
Unidentified Participant
Yeah. Can you hear me? Hello.
operator
As there is no response I’m taking the next question from the line of Maitrisha from Sapphire Capital. Please go ahead.
Maitri Shah
Yeah. Hello. Am I audible? Hello. Hello.
operator
Misha, are you there?
Maitri Shah
Yeah. Hello. Hello. Am I audible? Hello. Hello. Yeah. Hello. Am I audible? Hello. Hello.
operator
I think there is some technical issue. Just give me a moment.
Indrajit Mookerjee
Okay.
operator
Sir, could you hear the participants?
Indrajit Mookerjee
No, we can only hear you.
operator
Okay. I am promoting their names but they are not saying anything. I don’t know what’s wrong. Just give me a minute.
Indrajit Mookerjee
Sure.
operator
Sam. The next question is from the line of Abhinav from ICICI securities. Please go ahead.
Unidentified Participant
Yeah. Thanks for the opportunity. My first question is. The decline in wagons was on account of shortage in wheel set supply from the Indian Railways. As you mentioned, that has been normalized now. So can you help us in terms of guidance for FY26? Can it surpass the 25 levels?
Sudipta Mukherjee
Hi. Good morning. Avina, this is Sudipta Mukherjee. So. I mean whatever. We have the guidance for the year. We can. We will stand by that. It’s not going to affect the guidance otherwise.
Unidentified Participant
Understood. So second question Is on the order pipeline in terms of both the private and the Indian railways. In the near term, how is it looking also for the international markets, you backed certain orders during the quarter. The margins compared to the domestic orders.
Sudipta Mukherjee
Avinab so far, the Texmaco verticals are concerned in the core business freight car division. It has this rolling stock as well as our foundry components. And we have this electrical infra and the rail infra business other than the other joint ventures. So in a consolidated manner, I can tell you that in all the fields we find a lot of positive traction. And there are three entities from which we can expect order. And normally the inflows come in. One is railway. I mean, if we talk about the domestic market, we feel that we are in the execution mode of the last long term contract.
And in between there have been many small, small contracts came in. But very soon railway is coming up with their new requirements. So that momentum will continue. And we expect to see renewed demands from the private sector. Investment in the domestic market and also in the export. As a strategy of texmaco. I mean, continuing with the leadership in India, we wanted to expand our reach to newer regions and horizons. That’s also we find huge focus on rail infra infrastructure improvement in various part of the continent. And with texmaco’s qualification, we have been able to participate in those today.
And we feel that there will be a steady pipeline from there also in the coming quarters.
Unidentified Participant
So the final question is on the MOU that was signed with rvnl. Can you throw some light in terms of value? What will be the contribution going ahead?
Sudipta Mukherjee
Can’t throw light in that for various reasons. And you know that’s a PSU and we can only say that it is for better synergy and to approach to certain product line and services which are going to be of course as a possibility of being game changer for text market.
Unidentified Participant
Okay, sir, thank you and all the best.
operator
Thank you. The next question is from the line of Maitre Shah from Sapphire Capital. Please go ahead. Yes, ma’. Am.
Maitri Shah
Yeah, good morning. I had a few questions first. On the FBD side we had a degrowth this quarter. So are we still expecting to grow about 35 to 40% for the year?
Indrajit Mookerjee
Maitri, sorry, your voice was. Could you please speak?
Maitri Shah
Hello? Hello.
Indrajit Mookerjee
Yes, you are audible, but the voice was breaking. Please, please, please continue.
Maitri Shah
Okay. For the SPD side you have guided for 35 to 40% growth. And for the first quarter we had a bit of a degrowth. Are we still on track to maintain this guidance?
Sudipta Mukherjee
I have Answered in the answering to Avina that our guidance whatever we have given and in the public domain and also shared with the investors. So that will remain intact because the business which we are in it cannot be determined on a month and a quarter basis. This is a cycle and these are long term things and you have seen in last two years that how we have grown and we feel that’s not enough. There is a huge room to grow for the company and the momentum will continue and we stand by our commitment.
Maitri Shah
Also how is Q2 shaping up? Are we seeing growth in more freight deliveries going from now on especially in July and half of August?
Sudipta Mukherjee
It is on a right asking rate compliance that I can say to you whatever, as per our plan it is moving on in the as per the same run rate.
Maitri Shah
Okay. And for the EBITDA margins on the FTV side we had guided first double digits for the full year when hitting those ranges in this quarter or maybe a quarter three.
Sudipta Mukherjee
So I think that we also had a promise that we will improve in the bottom line in the coming days. And except whatever you have seen in the last quarter, we stand by our talk that you will see upward movement towards lower teen at least in the same.
Maitri Shah
Okay. And any like pipeline quantification you could give orders we’re getting inquiry for.
Sudipta Mukherjee
I mean I cannot give you the complete breakup for of course you know for a reason. But what I can say that in all our vertical of the existing business we have very good and upward inquiry and we are very close to even completing few if you have seen that the last quarter was very good in terms of order intake and we feel this momentum will continue in the coming quarters and we will have enough orders in hand even for the next financial year in all the verticals. That’s what is our target and we are confident that will be in that journey very positively.
Maitri Shah
Okay. Yeah, that is it from my side. Thank you.
Sudipta Mukherjee
Thank you.
operator
Thank you. The next question is from the line of Devar Shah from Sunidi Securities. Please go ahead.
Devarsh Shah
Hello sir, Am I audible?
Sudipta Mukherjee
Yes, yes sir, you are audible.
Devarsh Shah
So my first question is so out of 1815 how much has been contributed from text macro?
Sudipta Mukherjee
I think it was in the range of around 240.
Devarsh Shah
Okay. And would you like to comment like what would be the percentage share of private variants in this quarter?
Sudipta Mukherjee
I think every thing is being all these percentages are shared in in our presentation but normally I think it is in the range of 75:25 ratio which is going on. I mean whatever was there in the last quarter.
Devarsh Shah
Okay. Sir and what will be the difference between the rate of private vehicles and the normal vegans like which you give it to Indian dealers? So is there any crisis?
Sudipta Mukherjee
There is a. There is no specific number I can quote to you There is a price difference the reason is for the scope of work because in railway wagons it comes as a sometime as a bulk and it is more of a commodity type nature of product and there you have a wheel supply from railway on a predetermined price which is variable on a quarter to quarter basis On a private wagon there are two types of wagons One is that you have a design which is exclusively designed by RDSO Indian Railway and you have a turnkey execution contract including all components and also the extended sometime the services which you need to give to a private player and another is that suppose it is designed by Texmaco and we execute turnkey including all the BOQs.
So this is how both things are different the railway scope and the scope so prices vary from one to the other.
Devarsh Shah
Okay sir, so if I consider like a normal vegan to be in a range of 30 lakh then we might charge a premium upon the private vegan so can it be upwards of around 45 to 50 lakhs?
Sudipta Mukherjee
It depends on the type of the product like it depends on the. Suppose if we say that we want to produce 2012,000 wagons so that measure is based on a commodity type of product but when you have some exclusive types so the price range of the private wagon today in India I can give you a range it varies from 35 lakhs a wagon to around 70 lakhs a wagon so because you see the private companies who wants to invest are the types of suppose in automobile, in petroleum, cement, movement, steel and normally the railway wagons remains on the coal, food, grain and all of this so there is a huge gap in the range can’t have a specific one fits all answer.
Devarsh Shah
Okay sir, understood. So the range would be very helpful and the last question is when will the upcoming 40,010 Odisha foundry get operational? Like is there any timeline?
Sudipta Mukherjee
So there is no timeline we have defined, we have. If you have gone through our present board, the notes and the press releases we have done we have tweaked it into. We have divided into two phases the first phase your company is trying to do now is to ramp up in the existing facility out of Kolkata and Raipur and also debottlenecking the present capacity and depending upon the ongoing requirement the infusion of the fund will be decided in Odisha because what we Are more concerned cautious about in the way forward is the the return which will be low hanging and bringing us to prosperity first.
operator
Thank you. The next question is from the line of Parth Shah from Morgan Stanley. Please go ahead.
Parth Shah
Hi sir, good morning.
Sudipta Mukherjee
Good morning Parth.
Parth Shah
Hi. So can you throw some light on the JV to text macro? How is the demand, what is the competition looking like? And how is the government pushing for initiatives in the leasing space?
Sudipta Mukherjee
Okay Parth, so if you talk about JV of Texmaco so I have to run you through few of those. The first joint venture is with Wabtec Corporation USA and Texmac1 Wabtec they have a joint venture factory in India out of West Bengal Kolkata and we have been manufacturing frictional items that means more of a kind of brake equipments for the US market and also rest of the world where Wabtech supplies those items. Along with it we have some dumping components like the drop gears and all of this which we also sell in India. To tell you in a nutshell that this company and this joint venture has grown 100% over a period of last three years and we feel that we will have a decent 15 to 20% growth minimum in the coming this financial year.
Also now coming back to another joint venture which is a freight rolling stock leasing business. So texmaco has a joint venture with a company called Toax from France Europe and we today hold around 15 20% of the market share. And because we were historically dealing on a very specialized niche market where more than scale we were looking at the quality and this business has also grown on a pace of decent 12 to 15% last couple of years. But now we feel with the rising demand in the freight rolling stock market by the private investment, we being one of the company who are there in the market with all the bandwidth and having a kind of know how and access to newer designs and services, we want to scale this business up also and we expect to grow this business significantly.
I can’t, I will refrain to tell you a number now today but I can promise you sir that we are looking at it very keenly to have a better growth rate compared to whatever 12 15% we had in the last financial years. Now another third joint venture I would like to mention is a joint venture with one Slovakian company and a Czech entity called Nimwag and that Texmacro and Nimwag is coming up with a specialized freight rolling stock manufacturing plant which is going to be the most modern of its kind with all world class infrastructure and we expect to start operation of this plant in this financial year itself and maybe maximum by next quarter.
And this particular initiative is also directed towards to things of course to serve in the domestic market because we find there is a room for certain special kind of rolling stocks which the solutions are perhaps not available. And with the maturity of the market those things are going to come and also to serve to the European market. So these are the three joint ventures we had and have. And this is what is the update I think I have been able to answer. If not, please ask me
Parth Shah
sir, only one question. The government is pushing for leasing of coaches. But we see only a couple of players. Is there any development which you can, you know let us know.
Sudipta Mukherjee
Parth if we are talking about the freight rolling stock and if you talk about government. So I can Refer you certain PSUs who are coming up with some leasing proposition like Concorde, like cwc. And if you are talking about the passenger mobility side of it, of course this joint venture doesn’t do anything on that. And Indian Railway per se directly I am not aware of any leasing tender which has come up. So you can guide me on that.
Parth Shah
Thank you sir. I think that should be all.
Sudipta Mukherjee
Thank you.
operator
Thank you. The next question is from the line of Rajesh Bhandari from Nakoda engineers. Please go ahead.
Rajesh Bhandari
Good morning sir.
Sudipta Mukherjee
Good morning. Rajeshi.
Rajesh Bhandari
Yeah [Foreign Speech]
Sudipta Mukherjee
Rajesh ji, that was acquisition [Foreign Speech] the manufacturing plant from Jindal. [Foreign Speech] The arched Jindal rail. I think.
Rajesh Bhandari
[Foreign Speech] Double decker wagon, closed wagons.
Sudipta Mukherjee
Correct. Correct [Foreign Speech] Rajesh ji. So I’m happy to let you know in the last call that last quarter for prototype manufacturing.
Rajesh Bhandari
Enclosed. Enclosed enclosure.
Sudipta Mukherjee
Yes. Enclosed enclosure. [Foreign Speech] Yeah. Significantly the automobile transportation map [Foreign Speech] could change Kara. Because you know [Foreign Speech] to answer you precisely on the order [Foreign Speech] more or less I can share that around 65, 70% market share is business [Foreign Speech] and [Foreign Speech] center of excellence.
Rajesh Bhandari
Because your dedicated freight line [Foreign Speech].
Sudipta Mukherjee
[Foreign Speech] And dedicated freight line may dimensions different [Foreign Speech]. So design capability [Foreign Speech] optimized wagon [Foreign Speech] global capability center Design [Foreign Speech].
Rajesh Bhandari
[Foreign Speech] Turnover for FY26, 27 and 28 just expected.
Sudipta Mukherjee
[Foreign Speech] And to give you a kind of trajectory and on a reasonable pace. Keeping in line with the growth of GDP of India and bottom line improvement [Foreign Speech].
Rajesh Bhandari
Since we are into electrical infrastructure also [Foreign Speech].
Sudipta Mukherjee
[Foreign Speech] Proven invest and work the talk current it is out of radar. But we are working to have a right time for doing things. Not only covers you can find few other things also to come in.
Rajesh Bhandari
Just last question sir. Just one. Just last question. Last question. Question. Okay. Thank you. Thank you. Thank you. Thank you.
operator
Thank you. The next question is from the line of Akash Vora from Dalal And Brocha, please go ahead.
Akash Vora
Yeah, thanks for the opportunity. Sir. Firstly, I would like to understand how many wagons do we have in the current order book.
Sudipta Mukherjee
It is as on 1st of July. I think it is around 8500.
Akash Vora
Okay, 8500, right.
Sudipta Mukherjee
Yeah.
Akash Vora
Understood. And secondly since you’re talking about bottom, bottom line growth. Sir. So two questions from my side. First firstly sir, what kind of margins, EBITDA margins are we targeting for FY26? And secondly, earlier you also spoke about you know a fresh tender coming from Indian Railway. So I mean this is your discussions. When, by when do you expect this to come around?
Sudipta Mukherjee
I have answered the first point about the EBITDA expectations. I said that we are targeting anywhere near lower teens or double digit though. That is what we. I mean as per the guideline but I can’t be very specific that what exactly we are. I mean we can
Akash Vora
sir, but actually. We have not achieved those margins even in the past two years.
Sudipta Mukherjee
You are very right. But you must have also seen that we are progressing and achieving better every time last two years.
Akash Vora
Correct? Correct, Correct. So double digit margin is very much Possible .
Sudipta Mukherjee
every time as we are in the right trajectory and we are. We have significantly grown in last two years and we are saying that we, we will. Some parameters we have been able to do very good or as per expectations and some parameters we felt that if we can make it better. That’s what I think the company is consciously working and we are talking about.
Akash Vora
Okay sir, so 35, 40% guidance is on the bottom line level. Right For FY23 .
Sudipta Mukherjee
comment on a percentage. I think the guideline is displayed closed thing with the investors. So we will. We will. We are as per that and second part of the question was related to your railway tender. So we cannot again I’m sorry that I can’t be so specific when it is because I don’t have that knowledge. But what we hear and what we know being in the business that it should be anytime this year or within this financial year.
Indrajit Mookerjee
Yeah. Generally railways should require wagons. But when it’s going to come is very difficult to say for us.
Akash Vora
Okay. Sir. Sir, actually I was trying to search your guidance but I mean I don’t think you all have said it in.
Sudipta Mukherjee
The PPT to give you a very specific straight answer that due to. We don’t envisage any lack of order to fulfill our guidance. And I have maintained also and mentioned in this call also that we will have orders in all the verticals even beyond the guidance achievement of this financial year. And there will be residue orders for the next financial year. So we have that thing in mind.
Akash Vora
Understood, sir. Thank you. Thank you.
Sudipta Mukherjee
Thank you.
operator
Thank you. The next question is from the line of Parve Kazi from Nirma Group. Please go ahead.
Unidentified Participant
Hi, Good morning and thanks for taking my question. So my first question is regarding the amalgamation of Texas West. So by when do we expect to get completed?
Indrajit Mookerjee
Yeah, we have got the. Yeah, I’m Kishore here. We have got the NCLP order. Final order on amalgamation certified through copy has been applied. We will be expecting to get that in 10, 15 days. And then we will file with ROC and the amalgamation will be effective. It will be effective from first April 25th.
Unidentified Participant
So secondly on I think we had some orders in Bangladesh in the railway APC segment. So just wanted to get some views on that. Has there been any progress there?
Sudipta Mukherjee
See, we are happy to say. Happy to tell you this. Indrajit Mukherjee. We are happy to say that despite all the political uncertainties that’s going on we have finished one project very, very successfully. And we have been. We have received acknowledgment and compliments for the same. As far as the second project is concerned which we expect to end it by March 2026. You can understand that given the present situation it’s a very challenging work. But I have to congratulate our strong team with great resilience. That work is going on on the balance project at a very fast rate.
And March 26th we expect to even complete the same. So it’s been a. It’s been been a difficult project for us. But I’m happy to say that the. I’m happy to see that the worst is over.
Unidentified Participant
Sure. And lastly what would be consolidated net debt?
Sudipta Mukherjee
I will direct this to answer.
Unidentified Speaker
Yeah. It is similar to the March range. So it is about 800 crore. The debt portion and then some cash balances are there. So it will be 650 to 700.
Unidentified Participant
Sure. Thanks. And all the best of your time.
operator
Thank you. The next question is from the line of Sandeep Mukherjee, SKP Securities. Please go ahead.
Sandeep Mukherjee
Yes, sir. Thanks for taking my question. My question is like in the presentation you have mentioned that the components and the railway casting is expected to grow to 3 to 5×5 times over the next 2, 3 years. So sir, what is the strategy here and the revenue potential from the same.
Sudipta Mukherjee
Yeah. Sandeep, good morning.
Sandeep Mukherjee
good morning.
Sudipta Mukherjee
So revenue potential we have already mentioned which you have mentioned. I mean reading the guidance we have given, as I said that we are Doing it in two ways I can tell you. Tell you. One is that with our extended reach to newer markets and I mean independently as well as through our various partners through which we have the access of various markets. And second is that we are getting into or working on into certain new product lines and for which you have. You can correlate with it with our plan for foundry. As we have mentioned that we are doing a first phase and we have reviewed and debottlenecking our foundry and taking it to a level of 80,000 metric ton and 90,000 metric ton.
So these are the things through which we will be able to do it 3x and 5x. And we would like to recognize it as a different profit center. And it has a. I mean if I have to tell you that whatever be there in the thing in the coming days, it has a potential to be a good profitable business line for the company.
Sandeep Mukherjee
All right. Okay. Thank you. Thank you.
operator
Thank you, thank you. The next question is from the line of Ashok Shah from a Clavya Invesco family office. Please go ahead.
Ashok Shah
Thanks for taking my question over last many years or something. We are facing a problem of sourcing wheel set in only single railway wheel making factories unable to supply to all the manufacturer. So we have to source from outside China or Taiwan or somewhere. So why we are not expanding in decline.
Sudipta Mukherjee
Okay. You have very quite rightly mentioned that last couple of years we have found this problem. So it is a matter of. It’s a mix of a policy and a mix of a market situation actually. So last couple of years also we all have seen that how the production and the requirement have multiplied in terms of rolling stock for which wheels were required. So that is a point where for some odd private orders there was a mix from railway supply as well as from import. But as I say that the market dynamics is that there is no darth of wheel sets in the world and the pricing are also very competitive.
So it’s a kind of a mix and progress which is happening. And I mean Indian railway has also drastically improved the production but again the production of rolling stock were more so. And in between of course you see that no country and no nation is 100% self reliant for something or the other. You have to depend on the other other place to source your raw material or input or something. So with the present geopolitical situation the situation may look like grave but I think government is working very actively into it and we stakeholders are also working.
So there are, I mean it’s a very clear Route through which a little. I mean with the time all this will be taken care of. And as a company, if you. If you ask us that why we have not invested on the wheel sets. Because that is one of the dilemma which definitely where you put in money and where there is enough supply. So what where you will sell those wheel sets. Yeah.
Unidentified Speaker
Actually one more point I can add to you if you agree. If you permit me that you know we are constantly evaluating the business, the market and if you find that it is worth investing money, we definitely will do that. But we cannot make any comment at this stage.
Ashok Shah
Totally it’s imported from China or how it is imported.
Unidentified Speaker
It’s not totally imported from China. For the wheels for which Indian railway gives us contract. Indian Railway wheel factory we source from there. And for the private wagon and export wagons we import from China. Not only China, from international sources is not specific to China.
Ashok Shah
Recently there was news that one company called Vehicle Metal for has been approved by Indian Railway to manufacture wheels. So are we approaching them or doing something to make it easy for us?
Sandeep Mukherjee
I cannot comment about them. But As I think Mr. Mukherjee has also mentioned that we are evaluating if that situation arises that this is going to be one of the key and our investment into it is going to fetch us some good fortune. We will definitely consider. We cannot comment right. At this point of time we have. To also give you return. Otherwise you as investor will not be happy.
Ashok Shah
Last suggestion sir. Can you organize a plant visit in Western India plant any of. Because we have largest number of shareholder from Western India plant.
Sudipta Mukherjee
Absolutely yes. And not only in western India. You have to visit also the east part of India. East and west both we can organize for you. I think we please place your request with ICICI security who’s our partner. And once we have sufficient numbers we will be very happy to host you in our Baroda plan as well as in Calcutta plan. But please leave your request with IC ISEC And then .
Unidentified Speaker
I think we have a investor relation. I think somebody. Somebody.
Sudipta Mukherjee
Sorry. I am sorry. Also I’m. I’m sorry. I’ve been changing my version. Plus be. Please be. Be in touch with Church Gate and we will be very happy to do this.
Ashok Shah
Please send invite to all the participant when we organize. So I am sending it. But please send all to all the participant of the call. Thank you. Thank you.
Sudipta Mukherjee
We shall do that. It’s a good. I’m sure we will do it and we will welcome you there. You will be our guest.
Ashok Shah
Thanks. Thank you sir. Thank you. Bye Bye. Thank you.
operator
Thank you. The next question is from the line of Rajesh Bandari from Nakuda Engineers. Please go ahead.
Rajesh Bhandari
Yeah, thanks for giving chance once again. [Foreign Speech] So are we giving these components for Metro and. And this Namo Bharat. And.
Sudipta Mukherjee
[Foreign Speech] Again.
Rajesh Bhandari
Oh good.
Sudipta Mukherjee
And expansion. [Foreign Speech] Expansion. [Foreign Speech] One is automobile, another is mining.
Rajesh Bhandari
Is it good value addition.
Sudipta Mukherjee
Unavalid .
Rajesh Bhandari
Requirement. [Foreign Speech] It is more of consumable. So normally. Normally they say per approximately on an average what is the price?
Sudipta Mukherjee
Because specialized products. It’s not exactly expansion commodity market.
Rajesh Bhandari
Because mining is more of it the commodity market.
Sudipta Mukherjee
We are not expanding in a commodity market.
Rajesh Bhandari
Okay. Okay. Okay. Okay. Okay.
Sudipta Mukherjee
Thank you.
Rajesh Bhandari
Yeah, yeah, yeah. Thank you sir. Thank you very much.
operator
Thank you. The next question is from the line of Vedant Sarda from Nirmal Bank Securities. Please go ahead.
Vedant Sarda
As you mentioned many times you are stick to on your guidance is. Can you repeat the guidance?
Sudipta Mukherjee
I don’t want to repeat the guidances for all decency. And it is already published document and available with the investors. You can connect with this our investor relations also if you have any queries to cross check. Okay.
operator
Thank you. Participants with questions may enter star and one on the touch tone telephones. As there are no further questions, I now hand the floor over to the management for closing comments.
Sudipta Mukherjee
I would like to thank all the interested investors. It is your company and we very much like answering to all the queries or all the inquiries that you had. Because after all we all work for you so that give you additional value. And with your good wishes and with your support we will continue to deliver results to you and add value to your holdings. So having said that, the team of TexPACO from Sudipto Mukherjee, our Managing director, Kishore Rajgaria, our Chief Financial Officer and me, Indrajit Mukherjee. I would like to thank all of you for your time and you are most welcome anytime to get in touch with our investor relations company and direct any questions that you may have.
And I assure you that you will get prompt answers from us. At the same time we will also set up factory visits for whoever who would like to visit our factory both in Calcutta and in Baroda. It will be a pleasure for us to host you. Having said that, thank you very much and wish you a very good festive season.
operator
Thank you very much sir. On behalf of ICICI Securities. That concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.
Sudipta Mukherjee
Thank you.