Latest news with #CareRatings
Yahoo
19-05-2025
- Business
- Yahoo
Texmaco Rail & Engineering Ltd (BOM:533326) Q4 2025 Earnings Call Highlights: Robust ...
Release Date: May 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Texmaco Rail & Engineering Ltd (BOM:533326) reported a significant revenue growth of 48.5% year-on-year, reaching INR 5,107 crore. The company's EBITDA increased by 57.6% year-on-year, with a margin of 10.3%. Texmaco Rail & Engineering Ltd (BOM:533326) established strategic global partnerships with European and US-based firms, enhancing its international market presence. The company delivered 10,612 freight cars in the year, marking a 51% increase from the previous year. Care Ratings upgraded the company's long-term and short-term facilities, reflecting an enhanced credit profile and increased lender confidence. There was a noted decline in wagon production in the fourth quarter, attributed to supply chain issues, particularly with wheel supply. Margins in the fourth quarter were lower than expected, partly due to one-off expenses and provisions. The infra business segment did not contribute significantly to profits, remaining similar to the previous year's performance. The company's asset turnover ratio declined due to the acquisition of Texmaco West, impacting overall efficiency. Cash flow from operations has been a concern, with significant discrepancies between EBITDA and cash generation over the past five years. Warning! GuruFocus has detected 4 Warning Signs with BOM:533326. Q: Why is there a decline in wagon production? Has there been any problem with wheel supply? A: Sudha Mukherji, Managing Director, explained that wagon production should not be evaluated on a quarter-to-quarter basis due to varying supply chains and lead times. The production numbers should be viewed in continuity, considering the increase in private and export market shares. Q: Is there a possibility to exceed FY25 production numbers in FY26, especially with a higher share of private wagons? A: Sudha Mukherji confirmed that the company is focused on maintaining growth momentum and is optimistic about achieving significant growth across all business segments. Q: What is the expected timeline for the commercialization of the strategic partnerships with Trinity Rail Group and Neromo? A: Sudha Mukherji stated that the Global Capability Center (GCC) will begin commercial transactions within the financial year. The partnership with Trinity Rail focuses on global sourcing, while Neromo's high-speed rail technology is being explored for potential applications in India. Q: How do you see order inflow for FY26 given the lack of large tenders from Indian Railways? A: Sudha Mukherji expressed confidence in the government's execution of plans and expects significant wagon orders to be released. The private sector is also expected to remain bullish, contributing to order inflow. Q: What is the outlook for exports, and how much revenue do you expect exports to contribute in the future? A: Sudha Mukherji aims for exports to constitute around 20-25% of revenue across all verticals, with a focus on achieving a 60/30 ratio in the rolling stock and casting division. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Standard
17-05-2025
- Business
- Business Standard
Care Ratings reaffirms CD rating of IndusInd Bank at 'A1+'
IndusInd Bank said that the credit rating agency Care Ratings has reaffirmed its 'CARE A1+' rating on the certificate of deposit (CD) of the bank. Care Ratings stated that the reaffirmation of the rating assigned to the certificate of deposit (CD) programme of IndusInd Bank Limited (IBL) factors in comfortable capitalisation levels and growing franchise of the bank with focus on retail lending, earning higher yield on advances. While IBL has historically maintained a healthy earnings track record, profitability moderated in 9MFY25 due to elevated credit costs and a rise in deposit rates. CARE Ratings expects earnings in Q4FY25 to remain subdued due to one-time adjustments from derivative accounting discrepancies and potential implications arising from the ongoing review of the microfinance (MFI) portfolio. The rating also considers IBLs moderate resource profile, which has relatively higher proportion of bulk deposits. Asset quality moderated considering ongoing industry related stress in microfinance segment, which contributed 9% to the advances as on 31 December 2024 (down from 11% as on March 31, 2024) resulting in an increase in gross non-performing assets (GNPA) to 2.25% from 1.92% over the same period. CARE Ratings takes note of the lapses in the internal financial controls following the derivative accounting discrepancies identified in FY25, which will also adversely impact its earnings in Q4FY25. With resignations of both the managing director & CEO and the deputy CEO in April 2025, the progress of management transition, succession and stabilisation of operations will remain a key monitorable, notwithstanding the setting up of a committee of executives to manage day-to-day operations under the supervision of a board-level oversight committee until a new MD & CEO is appointed. Per the banks disclosure on 22 April 2025, the bank has roped in Ernst and Young (E&Y) to assist its internal audit department to examine certain concerns in the microfinance business, which have been brought to its attention in finalisation of accounts. Any adverse outcome in this matter can affect IBLs profitability and hence would remain an additional monitorable. Indusind Bank (IBL) is a new-generation private-sector bank promoted by the Hinduja group. IBL is the fifth-largest private bank in India in terms of total assets and total business as on 31 December 2024. The bank has a pan-India presence with 2,984 bank branches, 3772 branches of its wholly owned subsidiary BFIL, 300 vehicle finance marketing outlets, and 2,993 ATMs as on 31 December 2024. It also has representative offices in Dubai, Abu Dhabi, and London. The scrip had gained 0.26% to end at Rs 782.30 on the BSE on Friday.
Time of India
14-05-2025
- Business
- Time of India
Road ministry sets timelines for land acquisition; environmental clearance for national highway projects
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The ministry of road transport and highways has set up milestones for land acquisition procedures , and environment, forest and wildlife clearances for all national highways projects that come up for bidding with effect from June 1, move will help synchronise the project approval, award and appointed date declaration activated by all the stakeholders and will help in avoiding delays in construction of national highway projects after award and prevent contractual disputes as well as time and cost overruns, the ministry said in a recent notification. Care Ratings report shows as much as 55% of the 374 road projects awarded by the national highways body, with an aggregate construction cost value of Rs 1 lakh crore, are delayed beyond six months as of December 2024 with time overrun up from 33% in June 2023 to 55% in December per the notification, environmental clearance , wildlife clearance, general agreement drawings of Railways and utility shifting estimates have to be in place before bids are received, while the general agreement drawings of the Inland Waterways Authority of India (IWAI) has to be completed before inviting the bid and the forest clearance have to be completed before issue of letter of land acquisition, however, it has notified that over 90% of right of way (ROW) length for the project has to be acquired before receipt of transport minister Nitin Gadkari, in response to a question in Rajya Sabha in December, said nearly 44% of national highway projects, each worth at least Rs 150 crore, across 32 states and union territories (UT), were under construction as of March 2024, but are facing to Gadkari, 419 out of 952 such projects had missed their original completion deadlines by March 2024, with delays at various stages of project completion, due to land acquisition bottlenecks, delays in obtaining statutory clearances and permissions, utility shifting, encroachment removal, and law and order had the highest number of delayed projects, with 59 out of 101 projects running behind schedule, he had said, adding proportionally, northeastern states and UTs are the worst affected.
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Business Standard
12-05-2025
- Business
- Business Standard
Care Ratings Q4 results: Profit rises 77% to ₹43.37 cr on higher income
Its total income rose to Rs 124.82 crore in the January-March period from Rs 100.43 crore in the March quarter of FY24, the agency said in a regulatory filing Press Trust of India New Delhi Care Ratings on Monday reported a 77 per cent jump in its net profit to Rs 43.37 crore for the fourth quarter ended March 31. The domestic ratings firm had a net profit of Rs 24.55 crore in the March quarter of 2023-24. Its total income rose to Rs 124.82 crore in the January-March period from Rs 100.43 crore in the March quarter of FY24, the agency said in a regulatory filing. For the full fiscal 2024-25, its net profit surged 36.5 per cent to Rs 140 crore against Rs 102.56 crore in 2023-24. Shares of Care Ratings closed at Rs 1,342.85 apiece, up 4.28 per cent over the previous close on BSE.
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Business Standard
28-04-2025
- Business
- Business Standard
India's IIP growth recovers to 3% in March, FY25 output at 4-year low
Growth in industrial production recovered slightly to 3 per cent in March from a six-month low of 2.72 per cent in February as a high base and lacklustre demand kept output expansion in check, data released by the statistics ministry on Monday showed. In March 2024, the IIP had grown by 5.4 per cent. The slight gain in the index of industrial production (IIP) for March came on the back of the acceleration in the electricity sector (6.3 per cent) and a mild uptick in that of the manufacturing sector (3 per cent). This was, however, offset by the dip in the growth of the mining sector (0.4 per cent). According to use-based classification, infrastructure goods (8.8 per cent) and consumer durables (6.6 per cent) grew at a robust rate, while output in capital goods (2.4 per cent) decelerated. The primary goods (3.1 per cent) and intermediate goods (2.3 per cent) saw slight acceleration in output. Meanwhile, contraction in the output of consumer non-durables (-4.7 per cent) deepened further and stayed in negative territory for the fourth month in a row. Rajani Sinha, chief economist at Care Ratings, said that the manufacturing sector in March may have benefited from inventory accumulation by companies ahead of the anticipated announcement of reciprocal tariffs. However, monitoring consumption trends remains critical, given the ongoing unevenness in the domestic demand landscape. 'While rural demand is showing signs of recovery, lagging urban demand continues to be a concern. Factors such as declining inflation, healthy agricultural activity, lower borrowing costs, and a reduced income tax burden are expected to support consumption demand going forward,' she added. Overall, IIP growth for FY25 stood at a four-year low of 4 per cent, thus reflecting subdued industrial growth during the year. In comparison, IIP had grown by 5.9 per cent in FY24. Previously, IIP had contracted 8.4 per cent in FY21 during the pandemic. Madan Sabnavis, chief economist at Bank of Baroda, says that industrial growth has been more subdued this year with the consumption side of the story having a major influence. Data shows that the consumer non-durable segment contracted by 1.6 per cent in FY25, while growth in infrastructure industries (6.6 per cent), intermediate goods (4.1 per cent), capital goods (5.5 per cent) and primary goods (3.9 per cent) decelerated during the year. However, the consumer durable segment did well for the year with growth of 7.9 per cent being driven by electronics, computers etc. Starting April 2025, IIP data is now being released on the 28th of every month, thus bringing down the time lag from 42 days to 28 days from the reference month and also doing away with the second revision of IIP. Aditi Nayar, chief economist at ICRA Ratings, says that the lower response rate associated with the advancing of the data release has dampened the estimated growth rate for March, which may subsequently undergo a relatively larger revision as compared to that seen in the past.
