Texmaco Rail and Engineering Ltd (NSE: TEXRAIL) Q3 2025 Earnings Call dated Feb. 03, 2025
Corporate Participants:
Indrajit Mookerjee — Executive Director and Vice Chairman
Sudipta Mukherjee — Managing Director
Hemant Bhuwania — Chief Financial Officer
Analysts:
Abhijeet Singh — Analyst
CA Garvit Goyal — Analyst
Chintan Patel — Analyst
Jainam Jain — Analyst
Rajesh Bhandari — Analyst
Deepak Poddar — Analyst
Akash — Analyst
Unidentified Participant
Balasubramanian — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Texmaco Rail & Engineering Limited Q3 and FY ’25 Earnings Conference Call hosted by ICICI Securities. 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 the conference call, please signal an operator pressing star turn zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Abhijit Singh from ICICI Securities. Thank you, and over to you, Mr Singh. Thank you.
Abhijeet Singh — Analyst
On behalf of ICICI Securities, I welcome you all to the Q3 FY ’25 earnings conference call of Xmaco Rail and Engineering Limited. Today, we have with us from the management Mr Mukherjee, Leady and Vice-Chairman; Mr Mukherjee, MD; Mr Heman Bhawania, the CFO. I now hand over the call to the management for opening comments, post which we will host the Q&A session. Over to you, sir. Thank you.
Indrajit Mookerjee — Executive Director and Vice Chairman
Good morning, everyone. This is Indujit Mukerjee, the Executive Director and the Vice-Chairman. I want to compliment you on the day of the. I hope today is a day, so it’s a celebration all of our investment world. On this happy note, I would like — like to take the pleasure of welcoming you to our Q3 financial year ’25 earnings discussion. I hope by this time you have the opportunity to review our financial results, results and the earnings presentation, which has been made available to stock Exchange on last Friday. Delivered a stable performance this quarter, navigating various operational challenges while maintaining our business momentum. Recorded a revenue of INR1,326 crores in the quarter with an EBITDA of INR139 crores, which reflects a 10.5% margin, PAT stood at INR76 crores with a margin of 5.8%. For the first-nine months of FY ’25, revenue from operations reached INR3,766 crores, driven by consistent flow of order and execution in the key segments. EBITDA for this period of nine months was INR411 crores, which translates into close to 11% margin, while PAT stood at — stood at INR210 crores, reflecting a 5.6% margin. The performance highlights our continued momentum across its business segments, driven by operational efficiencies and favorable market dynamics and also a strong presence in the market. In Q3 FY ’25, we delivered 2,714 freight cars are marking a 54.6% Y-o-Y growth compared to same-period last year when we did, say, 1,756 freight cars. Our cumulative deliveries for the first-nine months of FY ’25 stood at 8,015 freight cards, reflecting a 70% increase from the same-period last year. This growth reaffirms our strong manufacturing capabilities and our ability to cater to the rising demand of freight cars.
Operator
Ladies and gentlemen, the management line has been disconnected. Please be on-hold while we quickly get them reconnected Ladies and gentlemen, the management line has been reconnected. Please go-ahead.
Indrajit Mookerjee — Executive Director and Vice Chairman
I apologize for the disconnection. I don’t know why — how it happened, but we are in the — I thought we are in the age of supreme technology. So in the communication field, but I don’t know, maybe AI had created some problem. So I would not start from the beginning, I hope so. I’ll start from where I ended. So the performance in Q3 FY ’25 was slightly lower than Q2 FY ’25. So Q3 was slightly tad lower than Q2. And I think we owe an explanation. And this happened because there were non-availability of wheelsets from Indian Railways. As you know that the wheel sets come from Indian railways, from railwheel factory and those are used for the freight cars. So there was a shortage of supply during the quarter and that pulled us down, but we tried to make it up as much as possible by doubling up our production in the later part of the quarter this also reflects on our strategic flexibility in managing our production issues. On the strategic front, I have to announce and I have to keep you informed that we had the approval from the Board for merger of TexMacco West Rail Limited with TexMacco Rail and Engineering Limited. For those who are not aware of the TexMaco Rail, TexMaco West, which is the company that has been acquired by us, which had the name of Jindal Rail Infrastructure Limited and we renamed it as West TexMacco West and we got the approval for a merger in the last Board meeting on Friday and we expect this is going to take about six to eight months for the exercise to get over. Additionally, as part of our business organization, we also decided to transfer the infra rail and Green energy, which is our EPC Group primarily as an ongoing business on a slump exchange basis into a 100% subsidiary of Rail. It is expected that the transfer should be completed within 12 to 15 months’ time because it has to go through many regulatory process. These steps align with our long-term vision to enhance operational efficiency and streamline our business structure. Besides, these two very important factors, there are many more advantages which these companies can get-in future in development of business. Our financial strength has also been recognized. I’m happy to inform that our long-term bank facilities have been upgraded to KRA, which is a notch improvement, one grade improvement, while the short-term bank facilities now hold a KRA 1 rating. But this reflects our stable financial performance and strong fundamentals. Looking ahead, we remain focused on driving operational efficiencies, enhancing capacity utilization and strengthening our presence in the market. With a healthy order book and strategic initiatives in-place, we are confident about our growth prospects in the coming quarters. I wish to thank you for your patient hearing and once again I apologize for the disconnection in-between. And between — we would be very happy to answer queries which you may have in this connection.
Questions and Answers:
Operator
Thank you. [Operator Instructions] The first question comes from the line of CA Garvit Goyal with Analytics Advisory LLP. Please go-ahead.
CA Garvit Goyal
Hi, am I audible, sir?
Indrajit Mookerjee
Yeah.
CA Garvit Goyal
Hello, everyone.
Indrajit Mookerjee
Good morning, you are audible.
CA Garvit Goyal
Good morning, sir, my first question is on the freight wagon side. If I look at your standalone numbers, these numbers are falling. And at the same time, if we look at the recent budget, sorry, I missed the opening remarks, so I don’t know whether you have commented on that. So in the recent budget, there is no increase in the increase in the railing stock budget amount. So can you please put some color like, is it like the TAM is not growing for us in the freight wagon side.
Sudipta Mukherjee
Hi, good morning. This is Sujita Mukar. So I mean to answer you, I have two, three things to say. As you were very rightly mentioned that it — I mean, you have pointed out that it has not increased. So-far the numbers we know, I mean, many, many things are yet to come out in the domain. There is in the budgetary allocation, perhaps is a 7.5% — around 7.5% increase on the overall outlay of the budget, it is around 2.96 what we aren’t. But as a rolling stock manufacturer and being in our domain, if you are talking specific to the wagon, so if you see that the momentum started on a long-term mission and it has to span up to 2030, for the first milestone to achieve where the railway share in the logistic has to go-around 47% plus, which was 26%. So from ’23 ’24 or if we continuously see the allocation of on rolling stock remained in and around INR40,000 crore to INR45,000 plus crores. So the heartening fact to us being part of the ecosystem and one of the major stakeholder or a leading stakeholder is, there is no cut in that budget and it is still in and around INR46,000 crores. So-far the railway estimation goes and as per information available to us. So it is not necessary — I mean, let us be practical, it is not necessary to increase the budget allocation every time. We have to see that what was part of our long-term plan, whether that is — that talk has been walked in or walked up to or not. So it is consistently been walked up. There were no disruption being created. So what is the point of our? So we took it as a very positive step because there has to be a theme always. And in the whole growth plan, one engine cannot move. It has to be a holistic approach to the government and I mean to the government plan, whatever we have for 2047 or Big or whatever. So if the country goes and the GDP has to grow, it has to have a holistic approach. And our part of the share are completely intact. And that’s why we are feeling as, I mean very secured and we are at our momentum to for momentum into the plan of the growth of the company and contribute to the development, whatever government looks forward to.
CA Garvit Goyal
Understood, sir. Secondly, on the order inflow side, so do you expect order inflow in the near-term, particularly from the freight weather side from IR?
Sudipta Mukherjee
And I would like to point out to you, sir, that whatever was the actual — I mean based out-of-the plan per annum procurement, government further went out to give some small, small — I mean, came up with various small, small orders, which were significant in nature anywhere near to 10,000 to 12,000 in-between also because if you see in ’22, ’23, order was issued for three years, which are going to expire in ’25, ’26. Now the major order has to come. In-spite of that, in-between there is a Philip government wanted to give in the rail infrastructure. So for infrastructure, we thought of finding the government thought of putting up new lines, double — doubling of the lines or whatever work you know. For that matter, some special-purpose wagons were also tendered and your company got a fair share of it. And we feel that this same momentum will continue. And there are certain sectors, of course, you have also gone through the budget very carefully, like when we talk — we are talking about coal, we are talking about mining and give a boost to these industries. And for carrying those augmented material, you need specific solutions for rail freight rolling stock and we feel that there will be a huge opportunity for us in addition to the government procurement in these sectors to supply wagons in the coming days.
CA Garvit Goyal
Understood, sir. That’s it from my side, sir. I’ll be in the queue.
Operator
Thank you. Our next question comes from the line of Chintan Patel with Abans Investment Managers. Please go-ahead.
Chintan Patel
Thank you, sir, for the opportunity. Sir, can you give us a number of Jindar revenues for the quarter and a number of wagons for produced by the Jindar?
Hemant Bhuwania
Yeah. So Mr Patel, I will answer to that. So for the quarter ended, Jindal has done around 526 wagons and a turnover of INR265 crores. They have reported a PAT of — sorry, PBT of INR35.72 crores.
Chintan Patel
Okay.
Hemant Bhuwania
For the — for the nine months ended, they had done 14, 17 wagons, a turnover of INR692 crores and a PBT of INR98.45 crores.
Chintan Patel
Okay. Got it. And sir, what is — what is our steel foundry captive consumption as we have around 45,000 ton of capacity.
Hemant Bhuwania
So right now we have a capacity of 48,000 metric tons and around 90% of the capacity is being used captively by our heavy engineering and West.
Chintan Patel
Okay and when can we see the still found a expansion will come on the board.
Sudipta Mukherjee
So the work is on in-full swing and by middle of next year will be your voice is baking.
Operator
This is the operator. Sorry for interrupting. Your voice is breaking, the management voice.
Sudipta Mukherjee
Yeah. So I said that presently, as has mentioned that we were doing around 48,000. So from the present capacity and combining the new facility coming up, our total capacity would be 80,000 metric tons finished casting and many of those will be beyond the domestic requirement and it is targeted to certain specific markets, including overseas. And we are going to have the highest capacity in the country in our segment and perhaps is the highest in the world.
Chintan Patel
Okay. And sir, regarding this, our slump exchange towards the BL, so what is your plan once it will completed fully? So whether we are looking for the monetize the EPC business or we are continuing with the operations.
Indrajit Mookerjee
Yeah. Actually I could hear the question. What is your question?
Sudipta Mukherjee
So sir, repeat the question please. In-between we couldn’t hear you.
Chintan Patel
Yeah, sure, sir. So sir, regarding that our infra rail and green energy slumps and slumps — slump exchange to transfer in the BL, our subsidiary. So this will complete in the 12 to 18 months. So what is your plan with this business, whether we are looking for the monetize of this business or we are continuing to do a business — we are continuing to operate this business. So what is that…
Indrajit Mookerjee
No, we want to continue with this business, we see tremendous future for the EPC business-related to our Indian railway. I think the — you all have read the budget speeches also where you find that a lot of focus has been given to the activities like playing off tracks and signaling and coverage. And in all these areas, we have our unique credentials. One or two areas maybe we are yet to acquire, but we are in a very advanced-stage of acquiring it. So answering your question, we want to focus on this business and we want to profitably grow and show exactly what we had done for our freight costs of rapidly-growing and becoming a prominent player. We also would like to do the same thing in the EPC business with a very strong management that we have.
Chintan Patel
Thank you. Okay. Okay, okay. Thank you, sir. That’s all from my side.
Operator
Thank you. Next question comes from the line of Jainam Jain with ICICI Securities. Please go-ahead.
Jainam Jain
Sir, my first question is, is the shortage of the wheel supply expected to be a problem for the remaining year as well? And is there any way we can hedge or circumvent this used risk?
Sudipta Mukherjee
So what has happened, of course, that crisis was there, but railway has taken a pragmatic decision along with discussion with the industry that they have allowed us to use the imported…
Operator
Ladies and gentlemen, the management line has been disconnected. Please be on-hold while we quickly get them reconnected ladies and gentlemen, the management line has been reconnected. Please go-ahead.
Sudipta Mukherjee
So I was answering to the question of the problem so I would like to point out to you it is so-far so long it’s resolved in the sense and that for private wagons manufacturing, we used to import wheels and railway has given us permission to use those — imported wheels into turning out of railway wagons with a replenishment basis up to April and that by April their supply will be I mean would be all bad.
Jainam Jain
Okay so sir is there any limit to what to the percentage of consumption of the vehicles which can be imported.
Sudipta Mukherjee
There was a time when there was a restriction now they have opened it up to April 2026.
Jainam Jain
Okay, sir and where are we importing from and how does it affect the cost.
Sudipta Mukherjee
So we import the approved, there are approved sources from railways. It is mostly from China and for the freight wagons, if you see and there was a time things used to come from Ukraine, but it is no more. So mostly it is from China as on-date.
Jainam Jain
Okay, sir. And sir, my second question is regarding the interest. Sir, the interest this quarter was much lower than the Q2. And my question is that we can — we have seen fluctuating interest levels this year. So what is the reason for that? And what can we expect for the next year?
Hemant Bhuwania
Would like to address this?
Sudipta Mukherjee
Yes.
Hemant Bhuwania
So finance cost, if you see, the last quarter we reported INR32 crores and this year also we reported INR32.93, which is almost the same. So we do not see any major variance in terms of finance cost. However, in terms of interest, last quarter, you see it was INR18.48 crores as against this year INR21.2. The prime reason for this was that there were certain — we did acquisition of in the month of September. So we had a buffer — we had that buffer because of which the CC limits to some extent were lying unutilized in Q2. So that is the reason you see that the finance cost has marginally gone up in-quarter three.
Sudipta Mukherjee
To answer the second part of the question that what is the plan for the future. So along with the efficiency of the operations, we have a definitely clear focus on improvement on all those parameters, including cost and the cost of various components of the business. And we are hopeful that there will be good improvements in another side.
Jainam Jain
Okay, sir, that answers my question. Thank you and all the best.
Sudipta Mukherjee
Thank you.
Operator
Thank you. Next question comes from the line of Rajesh Bhandari with Nakoda Engineers. Please go-ahead.
Rajesh Bhandari
Good morning, sir. Congratulations for the good numbers. Sir, Meera, a question is you double-deck wagons you have, sir, are we into double-deck wagons also?
Sudipta Mukherjee
[Foreign Speech ]
Operator
This is the operator. Sorry for interrupting management, your line is breaking. Can you just come a little closer to the mic? Please go-ahead. Thank you. Mr. Bandari, please rejoin the queue for more questions. Next question comes from the line of Deepak Poddar with Sapphire Capital. Please go-ahead.
Deepak Poddar
Yeah, am I audible, sir? Hello.
Sudipta Mukherjee
Yeah, please.
Deepak Poddar
Yeah, thank you. Thank you very much, sir, for the opportunity. Sir, just a few things wanted to understand.
Sudipta Mukherjee
Could you please speak little louder, Mr Podar?
Deepak Poddar
Yeah, yeah. It’s better now.
Sudipta Mukherjee
Yeah, much better, sir.
Deepak Poddar
Okay. So first thing, just wanted to understand we have an order book of INR7,600 crores-odd. So how many wagons that equates to?
Sudipta Mukherjee
It’s not about all wagons. If you see that we have around 11,000 plus wagon orders and we have also 11,500 odd order — order for wagon orders. So that is — that cumulates to this thing. And there are — our electrical division, we have more than INR2,000 crore order. So we have other businesses, if you see that also has cumulative around INR400 crore INR500 crore orders.
Deepak Poddar
Understood. So in terms of agon, this 11,500 and plus the other?
Sudipta Mukherjee
11,500 is the vehicle number as on-date.
Deepak Poddar
Okay, okay, great, great. And sir, you mentioned that the wheel set problem is resolved as of now. So can you throw some light, I mean, what sort of volume improvement one can see because we saw a dip in this quarter on a quarter-on-quarter basis. So some volume indication or understanding in 4th-quarter, what we are targeting in for FY ’26 would be very helpful.
Sudipta Mukherjee
Mr. Poddar, I cannot comment on a — I mean on a futuristic numbers or a statement, but I can only standby to the plan which company shared already with the investors earlier and we have given a guideline that time. So — and we are very much confident to be maintaining and working to improve upon. That’s what I can say.
Deepak Poddar
So sir, can you just please reiterate the guideline? I mean, what sort of guideline we have given?
Sudipta Mukherjee
I cannot do that. You can find it in with our partner. I mean I can guide you on that.
Deepak Poddar
Okay, fair enough. That’s very helpful, sir. I think that’s it from my side. Thank you so much.
Sudipta Mukherjee
Thank you. Thanks for your understanding.
Operator
Thank you. Next question comes from the line of Akash with Dalal & Broacha. Please go-ahead.
Akash
Yeah, thanks for the opportunity. Sir, my first question would be on the other expense. Why do we see such a spike in the other expense this quarter on a sequential basis?
Hemant Bhuwania
Hi, Akash. So yes, there has been a hike in other expense. There has — there has been certain initiatives taken by management for the future growth and the prospect of the company with the results of which you will see in the coming quarters because of which the expense you see has gone up from INR27 crores to around INR35.98 crores.
Akash
So I mean, you know, holistically I just wanted to understand what sort of an EBITDA margin should we take for modeling purpose going-forward as well are this quarter’s margins in the true, 10%, 10.5% would be the range we’ll be working at?
Hemant Bhuwania
So Akash, on the EBITDA side, we have reported — numbers we have reported, we won’t be able to comment on the forward-looking statement. But yes, certainly, we can tell you that from here onwards, there would be growth, which you will be seeing in-quarter — coming quarters too.
Sudipta Mukherjee
This is our endeavor to keep on growing.
Hemant Bhuwania
And this is the endeavor of the company that we keep on growing and you would see a continuous improvement from here on.
Akash
Understood, sir. And sir, just one question on the wagon production side. So I mean, do you expect that in FY ’26, we’ll be able to produce more values than what we have been doing in FY ’25?
Sudipta Mukherjee
We are, I think — I mean if you analyze the numbers and in the trajectory, I mean then you can — I mean the answer you will get immediately. Of course, it is on an improvement in this thing. And that is the expectation and that’s the endeavor?
Akash
Understood. Okay. I just want to understand the margin of improvement would it be double-digit or how much growth we can see in FY ’26, like just a estimate?
Sudipta Mukherjee
You go by the guidance, I would suggest again ji, okay. So these numbers are never being discussed in such a manner. So we are showing a growth or our — you can see the results whatever we are putting in. And we can only say that your management is working relentlessly to improve upon all the fundamentals.
Indrajit Mookerjee
Yeah, it has shown historical growth and we’ll continue to do that.
Akash
Okay, sir. Thank you.
Operator
Thank you. Next question comes from the line of Deepak Sharma, an Individual Investor. Please go-ahead.
Sudipta Mukherjee
From where?
Operator
Individual investors. Please go-ahead.
Unidentified Participant
Yeah, thank you for the opportunity, sir and congratulation on the good numbers. Just one question is, in the previous calls, you have given the guidance of 12% to 13% margin going ahead in the 1 and 1.5 year. So it’s already two quarters are past. So you are expecting that in FY ’26, we can achieve 12% to 13% EBITDA margin.
Hemant Bhuwania
So Deepak, just two points over here. We do not foresee that we had given any forward-looking statement of 12% to 13%. However, answer — to answer to your question, the numbers which you are seeing over here is a consolidated number of Infra Green Energy, Bright Power and freight car division. So if you see only the results of freight car division, we have an EBITDA of 11.85% that is almost 12% over.
Unidentified Participant
Okay, okay. And one question from the budget side. In budget, the Indian government has given a flattish type of — means allocation to railways. So do you think that you will get enough orders in FY ’26 as — because the budget numbers are flat?
Operator
Ladies and gentlemen, the management line has been disconnected. Please be on-hold while you can get them reconnected ladies and gentlemen, the management line has been reconnected. Please go-ahead.
Sudipta Mukherjee
So Deepak, some technical, we do not know-how. Apologies for that. You will please continue with your question.
Unidentified Participant
Yeah. The question is, suppose you are doing INR10 rupees of revenue in H1 and consistently in the past calls, you are saying that we will — H2 will be much better than the H1. That means we can expect the quarter-four numbers will be at least at par or the better than the Q3.
Sudipta Mukherjee
That’s the endeavor.
Unidentified Participant
Sorry?
Sudipta Mukherjee
I said that’s the endeavour we have been doing it from the you can you can see that we are always trying to improve upon the past. So that’s the endeavor of the management to do better.
Unidentified Participant
Okay. My last question.
Indrajit Mookerjee
Yeah, negative impact, we don’t foresee negative impact for the coming quarter. So hopefully…
Unidentified Participant
Okay. My last question is, what are the opportunities and threat you are looking for the FY ’26 from the railway perspective.
Sudipta Mukherjee
Opportunities I mentioned that we feel that there will be along with the railway, railway will continue to have their procurement plan, whatever they have done for a longer-term. And we feel that in the coming year, they may come up with larger, I mean which are large number tender again and but that is the expectation. But because as per plan, so-far last three, four years, things are moving. So it is due, so naturally it has to come. We also feel that the private sector investment will grow in the infrastructure, various things like minerals, coal, iron-ore and this food grain and continental movement, perishable, auto. So these things will get a very good momentum in the coming year. So these are the opportunities. Threat, of course is perhaps is a kind of a unknown thing that what would be the global dynamics in terms of the geopolitical situation we do not know but India, I think is on a right trajectory. And of course, we are bullish about it and your company has a kind of a risk mitigation while we are into almost all continents where we are steadily increasing our supply and customer-base. And that also comes as an opportunity and also comes as a risk mitigation. And third point of risk mitigation I would like to say is that the movement in the rail infra and the electrification sector and our order book is very steadily growing because we are consciously moving into that. The profitability is very good in that also and we really want to harness that and make a complete bouquet of very good performing verticals within the company.
Unidentified Participant
Okay. Okay, sir. Thank you.
Operator
Thank you. Next question comes from the line of Abhijeet Singh with ICICI Securities.
Abhijeet Singh
So my first question. My first question is on the number of wagons in the budget for FY ’26. So — and the reduction of the number of wagons for FY ’22, the revised estimate versus the budget estimate. Sir, in the light of these changes that have happened in the budget, how do we look at the mindset of the Indian railways and the government? Like going-forward, the initial plan to shift a majority share of the freight loading to railways from road. Is there a delay or is there a change in mindset at the government level that we see right now and that could hamper the order inflows going-forward for us? That’s my first question.
Operator
Thank you, sorry to interrupt you, so you are not audible, sir ladies and gentlemen, please stay connected while we reconnect the management, please ladies and gentlemen, we have the management line reconnected, so you can go-ahead.
Sudipta Mukherjee
Yeah. I said that I couldn’t understand the first part of the statement made, which was included in the question that it was perhaps was mentioned that some allocation has gone down in freight wagon. Could you please repeat that part because I’m not privy to any such information. So I want to know from you first.
Abhijeet Singh
I’m saying that for FY ’26 budget estimates, the wagon number has remained flat at about 38,000. That is the budgeted number. So in that context, do we see a risk to our order inflow going-forward? Or is there a structural change in mindset by the Indian Railways as to the initial plan of shifting the freight loading from railways to roads? So is there a change in mindset that you see come happening here and is there…
Sudipta Mukherjee
No, we do not see any such shift in the mindset at all because it is not sustainable. In railway, we have to move more-and-more for better connectivity, I mean lesser number of logistic cost and for carbon emission targets and everything for the global requirement. And I mean, we don’t find any shift at all. And if you see, I think if my data is correct, I mean rail freight is one of the major income of the government and Indian Railway, which is on a steady growth trajectory. Last financial year also, I think it was around INR1.88 lakh crore RNE, which is also a significant growth. So I feel it has to continue. And whatever figure you have said, 38,000 odd whatever, actually if we calculate the national rail plan, so it comes around 38,000 to 40,000 per annum only and with the boost of the private investment, so which is a very, very healthy and on-track, very good thing for us.
Abhijeet Singh
Right, sir, right. Sir. And second question would be on the exports, sir, right now with the change in the rate in the US administration and the policies that we have seen of late, sir, what is the kind of risk that we anticipate to our business of — particularly of casting that we export generally?
Sudipta Mukherjee
So see, we do not know what tariff, regime and all of these have to come. But we know that US railroad is due for — overdue for renewals. And we expect a huge momentum and the investment has to happen for that country to be better-off. And they do not have enough resources or sources to have these things procured and considering the relationship and the trend we see in the geopolitical issues, I do not want to name any other country. We have — we are very — I mean well-poised and that’s why we are gearing up for better numbers to give it to them.
Indrajit Mookerjee
And one of the major reason also in our beliefs are — one is the demand in the market to answer you straight, we feel it will be fair for India and it will grow. And so-far coming back to us in our capability question, we are efficient, we are cost-effective globally. So — and quality standard wise also we are competing with everybody. So we find — we don’t find much trade-in and around it.
Abhijeet Singh
Sir, are we also looking at opportunities that we might be able to capture once you know if there are tariffs applied to some other countries, let’s say, which are doing business with them already. So let’s say, some other product-line or something that we could capture in this event. So are we looking at…
Sudipta Mukherjee
Yeah. It’s a very good point you have mentioned. It’s all about the transportation cost and the tariffs. And your company is absolutely flexible and we are known for our good relations with various global partners across the world. And if you — I would also like to give you a hint on certain important criteria in terms of our selling of castings and that we are — we have our presence in Australia and that is also going up. And in the mining sector other than railway, we have forage into. And we are — I mean we feel that it’s a significant growth engine, domestic as well as export.
Abhijeet Singh
Right, sir. So thanks a lot for answering the questions. I’ll join back-in queue.
Sudipta Mukherjee
Thank you.
Operator
Thank you. The next question comes from the line of Balasubramanian with Arihant Capital. Please go-ahead.
Balasubramanian
Good morning, sir. Thank you so much for taking my questions. Sir, out of this 11,500 vagants, how much is comes from private vacants?
Operator
So the focus of sorry to interrupt you, sir, your audio is not clear, sir.
Sudipta Mukherjee
So am I audible now?
Operator
Yes, sir, this is better.
Sudipta Mukherjee
So the total number of private wagons in nine months is 2,679 numbers.
Balasubramanian
Sir, I’m asking about order book?
Sudipta Mukherjee
So it is — private is 25% approximately and railway is 75% as on-date.
Balasubramanian
Okay, sir. So currently we are importing wheel cells from China. So what would be the price difference between Indian wheel cells and Chinese wheelsets?
Sudipta Mukherjee
It is a varying cost and it is almost competitive.
Balasubramanian
So as the current price sir, wheel we are importing how much the realization?
Sudipta Mukherjee
It is apple-to-apple there are various types of wheels. Apple-to-apple it is almost same.
Balasubramanian
Okay. Is there any price range, sir like importing the wheel prices currently? Earlier would be anywhere between 2.3 lakh to INR2.7 lakh per wheel. Is there any changes right now?
Sudipta Mukherjee
I have not got your question.
Balasubramanian
So earlier the wheel set prices anywhere between 2.3 lakh to INR2.7 lakh per. Is that in the same range or is there any price increase happened?
Sudipta Mukherjee
Okay. So I think it has come down because the supply is more than the demand in the market presently.
Balasubramanian
Okay, sir.
Operator
Thank you. Ladies and gentlemen, we have reached the end of our question-and-answer session. I would now like to hand the conference over to the management for closing comments.
Indrajit Mookerjee
Thank you very much and I’d like to personally, we like to thank all the investors or all those who are interested in knowing about our company, I could only say that we are not going to disappoint you. We are — our team is working our Managing Director, has mentioned relentlessly to improve the performance and you must be also watching it and seeing it from distance from the numbers. They are showing an upward trend in all the numbers. If we look at the problem that there’s only one problem that we had is that we had a flat numbers between Q2 and Q3 and that was because of a absolutely difficult situation that we pass-through, which was not within our control, this is — which we discussed a lot in the conversations that it was due to unavailability of some very key components for making the freight cars. So you will see us growing, you would see us getting the best of the opportunity. You would also see that our acquisition is very strategic. We are developing and moving into better designs of wagons. We also are looking into the private segments, which also you will see there is an phenomenal changes taking place. We used to be 10% of our orders on private, which has gone up to 25% and there is a number that it’s not that we’re going to do all private wagons, but I think we have almost come to an optimum number that we will — that is the best because there are many other advantages also of doing the railway wagons. So the railway, we are very interested in doing railway wagons. It’s not that we would like to do only private. I think we have come to a very healthy mix. You also will see us are growing in the other areas. That’s the reason we have decided to demerge the EPC business, which is the infra rail energy and rail green energy business. And you would see also some — our foray into the very careful step steep into the passenger mobility. As you have seen, strategically we are moving through component supplies like the acquisition we have made to buy an European company called Cyra where we make the interior. So it’s the — it’s a very careful we are trading through. We don’t want to take too much risk, so that — so that we are — we are in a position when we can keep on delivering without blips. So with these few words, I’d like to once again thank all of you to be with us and we all need you good wishes for us to succeed.
Operator
[Operator Closing Remarks]