Earnings Call Transcript - XNSE:TEXRAIL 2026-11-11

Operator

Ladies and gentlemen, good day, and welcome to Tech's Microrail, an engineering limited Q2FY27 earning 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 by pressing star, then zero on a touch-tone phone. Please note that this conference is being recorded. And now hand the conference over to Mr. Naveen Saradev from ICICI Securities. Thank you, and over to you, Mr. Saradev.

Naveen Saradev, Analyst — ICICI Securities

Thank you, Siddhant. Good afternoon, everyone. On behalf of ICICI Securities, I welcome you all to the Q2 FY27 earnings call of Texmicro Rail and Engineering. From the management, we have with us Mr. Indrajit Mukherjee, Executive Director and Vice Chairman, Mr. Shuditto Mukherjee, Managing Director, Mr. Shibut Matthews, the company CFO, and also Mr. Sandeep Banka, Deputy CFO and Head Investor Relations. So, without any further ado, I hand over the floor to the management for their opening comments. Over to you, sir.

Indrajit Mukherjee, Chairman

Thank you very much. This is Indrajit Mukherjee, Executive Director and Vice Chairman of Texan Corel and Engineering Limited. Good afternoon, all our friends, our investors. It's always a pleasure to connect with you. On behalf of the management team, I welcome you to the quarter 2 and H-127 earning calls of Texnak Odell and Engineering Limited. Joining me today in this call are our Managing Director, Mr. Sudip Tonkarji, our new Chief Financial Officer, Mr. Shibu Matthews, our Deputy CFO and Head of Investor Relations, Mr. Sandeep Banka. I would like to take this opportunity to welcome Shibu to his first year earning calls with TESMACO and look forward to his contribution as we take the company into its next phase of growth. Shibu has very rich experience in the financial areas, in various kinds of companies, and in various places. Our financial results and earnings presentations have been made available to all of you. And I hope you have had the time to review them. So I will like to take this opportunity to tell you broadly, give you a broad commentary of our operations and what we are thinking of doing and where the business is moving to. Shibu and Sandeep will be available to answer or dig your queries. When we introduced XFACO 2.0, we broadly spoke of three areas of focus. The first was strengthening our core freight loading stock business and our foundry business. The second was expanding into Related railway adjacencies, which are basically technologies and components, and thirdly, the concentration onto the export market. I'm happy to state that we are making very successful progress in all these areas. We are now in almost at the finishing stage of our work in progress towards achieving a Tech Spago 2.0. Patient support in our exercise. I think the tipping point has come. Please, I do not want to make an impression that we are moving away from our core business. On the other hand, we have strengthened our core business by improving on efficiency, cost control, and bringing in modern design through our GCC, which is Operating out of Delhi, as well as our partnership with Trinity Engineering, one of the major of the U.S., and VapTech. We had taken challenges from the formidable Chinese manufacturers. We are establishing our... Market with special focus on Africa. We have turned This is also reflected in our order book, where export has shot up to 54% against 9% on a YOY basis, fueling upward trend in the profit margin, because the export business has very high profit margin. Dear friends, Our earnings have definitely changed, despite a very challenging situation, which we have encountered, and that's why you will find that our quarter two results have been better than the quarter one results, with all qualities and in numbers. I would also like to say that we have made forays into a defense business, which is completely out of the railway business, but has the same DNA requirement of manufacturing. So, you will hear more about it as we progress. I would like to tell you a quarter at a glance. Before I... If you don't do anything else, I would like to say that the standalone revenue from operations was 863 crores, which is 15% higher than the last quarter. EBITDA was 88 crores with a margin of 10.2% and profit had been 36 crores. We delivered more wagons. Then, last quarter, we delivered about 1,106 wagons, and our foundry also started showing upward trend in producing 6,468 metric tonne. All three of our divisions grew in revenue over Q1, in spite of the condition environment that I have already stated. And two of them, which is freight car and infra, rail and green energy, improve both PBIT and the EBITDA margin. Our turnover mix is also broadening. Freight cars contributed 62.3% of standalone turnover this quarter, compared to 68.8% in Q1. And. 74.7% same quarter last year. Infra-business, infra-electrical businesses risen to 27.8% of turnover, which is a massive jump from earlier year. Put simply, businesses... Outside FedCars also are showing an improvement, and today it's make up almost like 37% of the turnover, as it is 25% same period last year. These are all some of the actions which we are in, where we are strengthening our core business, as well as our other businesses are also taking shape. So having said this, I would like to conclude, and if you, I would like to...

Sudipta Mukherjee, Other

Thank you very much for the opportunity to wish all of you a very happy Diwali, and of course we normally follow that immediately after the result we go for the investor call.

Shibu Matthews, CFO

So, rated us as Thank you.

Operator

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. 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 Sukrit Deepartal from iSight Fitrade Private Limited. Please go ahead.

Hari Kumaras, Analyst — Individual Investor

Good afternoon to the team. You need to unlock your iPhone first.

Sukrit Deepartil, Analyst — iSight FinTrade Private Limited

Sorry, was there a disturbance? Can I continue?

Sudipta Mukherjee, Other

Can you be a bit louder?

Sukrit Deepartil, Analyst — iSight FinTrade Private Limited

Yeah. Am I audible right now?

Sudipta Mukherjee, Other

Absolutely fine.

Sukrit Deepartil, Analyst — iSight FinTrade Private Limited

Yeah. So my first question to Mr. Suditta Mukherjee is, your revenue fell 30-31% this year on year because I understand Indian railway orders have slowed down. Though your recent 426-427 crore private wagon win shows strong diversification. Just want to understand, as you shift more towards private domestic buyers and export markets, how are you managing the risk of order delays or custom design changes? And what steps are you taking to make sure the factories run at full capacity without relaying heavily on government tenders? Just want to understand, you know, in case the government tenders slow down, what is the next plan of action?

Sudipta Mukherjee, Other

Thank you very much for the question. So, one thing, as you have, I think, whatever you have narrated, it has the answers within it. So, this diversification was conscious on part of Techsmackle, that we do not want to depend on one single customer or one single domain. Say more than 40%. That's our internal kind of target we have taken to diversify the portfolio and to have a sustainable growth. In terms of the, while we do this diversification and more pie on the private and the export. As you have rightly mentioned, it comes with new designs and new supply chain and a new this thing. So, all of this takes time, but the output of these wagons will never match with the numbers of the commodity wagons, which we normally used to make or seen in the last couple of years during the execution of the Indian Railway orders, because these are of different types and it calls for a different... I mean, input in the whole life cycle. So, you are not also comparing in terms of numbers, but yes, we are very well protected that even if there is not much railway order, you can see that I have mentioned in my remarks, opening remarks, that we have around 8,000 crores of rate wagons orders to be executable within this year and the next year as of now. 85% of the private orders. I've made a mean fund. I'm going to go to the call.

Sukrit Deepartil, Analyst — iSight FinTrade Private Limited

Thank you. My second question to Mr. Matthews is, I just want to understand that once we take out the one-time 75-75 crore JV gain, your core business profit is much lower than last year, if I'm not mistaken, because of higher input costs and lower volumes. I just want to understand a forward guidance on how you will defend your profit margin in case raw material prices rise, and how will you make sure private customers pay on time without tying up your working capital? Thank you.

Shibu Matthews, CFO

Yeah, so as you mentioned, the exception income is a one-time gain, and there is more to meet disclosure requirements. But if you look at our EBITDA performance over the quarter, previous quarter, we have defended our EBITDA quite well by taking multiple actions to reduce waste, the player chain is working on reducing cost of raw materials, the various initiatives around cost reductions which we have undertaken. There are also steps around, say, the finance cost. If you would see, there's a reduction in finance cost compared to the previous quarter, that is, due to of last year, and even to the last quarter. As I mentioned earlier, we are working on upgrade of our freight rating, which is also translating into lower finance costs. There are multiple initiatives in power and fuel in freight negotiations, through which we feel that we'll be able to generate better returns. And also, if you look at the bid-time margins, it's also improving because of mix. Thereby the margins are getting better. So I think the combination of this, we are pretty confident that we are able to retain, if not improve, our margins going forward.

Sukrit Deepartil, Analyst — iSight FinTrade Private Limited

Just a final note to that question and end my question with this only. I understand that that answers the raw material prices area, but what contingency plans have been done in case, you know, customers don't pay on time? You know, if that, you know, like it locks up your working capital. They want to understand what is the plan for that scenario also.

Shibu Matthews, CFO

Yeah, customers not paying on time is not a scenario, it's not something which is, they may be one or not exceptions, but we're not seeing a trend of that in our business. Because as you know, all our customers are well-placed and well-known, and we don't work with customers who are of redoubtable background. So we don't see that as much of a concern. Plus our entire contract, we have a significant portion which is advance. So, even before we start manufacturing, or even before we procure our materials, a significant part of the considerations are already received. And also, we have milestones through which by the time of delivery, by the time of the significant part of the revenue is already realized. So, we obviously continue to optimize this to make sure, like for example, in our The export contracts. Not paying us.

Operator

The next question comes from the line of Parvez Kazi from Mwama Group. Please go ahead.

Parvez Kazi, Analyst — Mwama Group

So, my first question is, we have obviously diversified a lot over the last one year, reduced our dependence on railways. I think the presentation mentions that barely around one, one and a half percent of our order book comes from the Indian Railways now. So, significant achievement. Now, we recently received a 400 group order from Indian Railways, which is Thank you, Mr. Parvish.

Sudipta Mukherjee, Other

This is Shwadipto. So, yeah, so we... These private orders and the export orders, whatever we are getting, and as I say that there will be a momentum, because this was also related to certain capability and engineering which we invested in and the people. So that will continue. In regard to Indian Railway, I mean, we can't have a base work, but yes, it was a very welcome initiative by Railway, because you know that certain things... For excess, I mean, for increased power generation, railway needed to invest in transportation of coal. So the last tender came out like that, and it has a statutory obligation that who had which contract and based on that, that percentage were distributed. But I think that this is not the end of all, because there are many things which... Railway is very consciously focusing and have spent a lot of money last two years on augmenting the infrastructure and decongest the whole network. And with the focus of the Honorable Minister, Railway Minister, that on the simplifying the procurement... So, the railway demand has to be looked into in two ways. These private companies will be investing, the PSUs and undertakings will be investing, and also the government of India will be investing, because the clear mandate is to increase the rail model share.

Parvez Kazi, Analyst — Mwama Group

Second question is regarding our South African order. So, we had earlier about 4,000 crore orders. Now we got the 1,300 crore orders for locomotives. So, one, who will do this locomotive part? Will this be done in our standalone entity or will this be done under our WAPTAC GV? That's the first question. And second, any color on what kind of execution? That we can see in FY28 on both the wagon and the locomotive part of the audit. That would be great. Thank you.

Sudipta Mukherjee, Other

So it looks like, I mean, as per the contract, so the FY... So, the FY2728 and plus one quarter, that is the delivery of both. Now, it was a turnkey solution, and, of course, wagon, locomotive, and it doesn't end here. We have to have a maintenance for 15 years. So, that will also continue for both. So, that also has to come. And regarding the locomotive, obviously, TexMarco... We'll be part of the manufacturing, cannot be or providing some of the stops to the integrator, but it's under discussion, and you will get to know very soon that how and in what mechanism it will be. But it will be from India, of course, that I can guarantee.

Parvez Kazi, Analyst — Mwama Group

Sure, sir. Thank you.

Operator

Thank you. A reminder to all the participants that you may press stop and want to ask a question. The next question comes from the line of Bala Subramanian from Arihant Capital. Please go ahead.

Bala Subramanian, Analyst — Arihant Capital

Good afternoon, sir. Thank you so much for the opportunity. Sir, we have signed MOU for Wheels JB. Could we share more updates, especially for this MOU, because our two other competitors are most in stage of their wheel set factories. I just want to understand our purpose and how we are going to take it forward, this WheelsJV.

Sudipta Mukherjee, Other

So, we intend to be in the wheel business, and while we want to do it, we want to do it in a more complete way, and our scale of product range, we are looking forward that also keeping it in line with the ambition of the country, I mean, in terms of the heavy haul and the high-speed trains. So, this is, in a way, the ambition of TexMarco. So, you will get to know further details as we progress, but we can say, as Mr. Indrajeet Mukherjee has also mentioned, that we are in the very active work in and around everything what we have communicated to you, and it's a work in progress and within the timeline.

Bala Subramanian, Analyst — Arihant Capital

Okay, sir. Sir, my second question, our export order book nearly 5,800 crore range, and we made a provision nearly some 700 crore as majorly for export-related freight and other things, including Bangladesh orders. So if I'm calculating, it's almost a 12% kind of range of order book for provisions. Generally, export margins are 14-15% kind of range, but if you already made an adjustment of 700 crore, hardly 3-4% left on the table. So please correct me if I am wrong, like what we went wrong, and what are the process and implementations we have done, especially for upcoming export orders.

Sudipta Mukherjee, Other

It has nothing to do with the... Our return on execution, what we'll be doing, including the export orders of locomotives, the wagons, all the top lines and bottom lines will come, and these are all very good, profitable work orders. I mean, in relation to the infrastructure business. Let you know that most of the legacy businesses of the company is over, and I mean, we are in a very good position to even, we believe that. We, uh...

Bala Subramanian, Analyst — Arihant Capital

Sir, my last question on the CAPEX side, if I'm looking at the balance sheet, there is no movement compared to FI26 still now. I just want to understand how we are planned for our CAPEX and what is the progress, and especially if you look at debt side also, we could share, because most of the CAPEX is linked to debt. You could share that CAPEX plan as well as how that debt profile moves over next two to three years.

Shibu Matthews, CFO

Yeah, so Shibuya, I will not be able to give you the exact number of our CAPEX spend. It's an evolving thing, but we have a plan, and we have a plan, and we have a plan, and Thank you. We have ambitious growth. We'll be spending If you look at our balance sheet, we are actually retiring debt.

Sudipta Mukherjee, Other

Persuiting the present.

Bala Subramanian, Analyst — Arihant Capital

Yes, sir. Actually, why I'm asking these questions, we have given guidance of 2.0, nearly 9,000 to 10,000 crore kind of top lane. So that's why, like, what kind of support capital we are going to infuse, if you could get some sense on it in terms of sales for KPEX or maybe three to four years time, if you could share more clarity.

Sudipta Mukherjee, Other

So, it's again something that we will come back to you. Definitely, it's a very, very valid question. Time to time, we will come back to you. It's a combination of organic and inorganic kind of a process. We will follow a financial discipline. We will follow that the business, even if we have to acquire, has to earn money from it. Refilling our criteria of much higher data and sustainability.

Bala Subramanian, Analyst — Arihant Capital

Got it, sir. Thank you. All the best.

Sudipta Mukherjee, Other

Thank you.

Operator

Thank you. The next question comes from the line of Hari Kumaras, who is an individual investor. Please go ahead.

Hari Kumaras, Analyst — Individual Investor

Thank you, sir. Thank you for the opportunity. I'm audible, sir. Okay. Two questions, sir. One is on the, this R&L JV was expected to be a huge opportunity, but when is it going to start, sir?

Sudipta Mukherjee, Other

So, we are waiting for the right size of tender or opportunities to work with. It is already there. And many things, I mean, the big portions, big topics or the big tenders, which were, you know, it takes a little bit of time. So, that's how it is. It can start any moment, even if... We expect that within this financial year, something should come out. A good one.

Hari Kumaras, Analyst — Individual Investor

Okay. And the second question, sir, on this NIMAG, and how is the European opportunity, and how is the NIMAG potential, sir?

Sudipta Mukherjee, Other

NIMAG, we have created a joint venture in India. Of course, the objective was to bring new... Design rolling stocks to Indian market and also to export to the other countries. And so far, India is concerned. The company has got the RDSO is a research, design and standard organization who gives an approval for a company to start manufacturing. So there is a certification called G105 certification, we got the initial approval of the G105 certification, and we are under the condition that first we have to create a prototype or start manufacturing something, we have applied to railways for granting some orders for us to start the prototype. So the plant is almost production ready.

Hari Kumaras, Analyst — Individual Investor

And lastly, Seth, this... Castings business, being there is a huge potential, why are we not putting more, expanding our capacities in the foundry business?

Sudipta Mukherjee, Other

Very good question. Foundry business, we have already expanded our capacity to a large level. I mean, you know that couple of years back, we were in the range of 20,000-25,000 metric ton. Today, we are, I think, the largest. So, 60,000 metric ton is our capacity today in terms of, I mean, combining both the foundries. And I'm happy to let you know that so far the trajectory and trend is going that other than meeting with our domestic requirement, we'll be having one of the highest expectations. It has a very high growth trajectory.

Hari Kumaras, Analyst — Individual Investor

Are we not constrained of the capacity, sir?

Sudipta Mukherjee, Other

Not at all. Okay. Thank you.

Operator

Thank you. The next question comes from the line of Viren Patel from Balaji Investments. Please go ahead.

Viren Patel, Analyst — Balaji Investments

Good afternoon.

Sudipta Mukherjee, Other

Good afternoon.

Viren Patel, Analyst — Balaji Investments

Am I audible, everyone?

Sudipta Mukherjee, Other

Yes, sir. You are.

Viren Patel, Analyst — Balaji Investments

Sir, first of all, I would like to know that we have an order book of 10,000 crore. So, my first question is when this 10,000 crore of order books is going to be executed? And my second question is regarding the provision of 700 crores last one year or around six months back. There is hardly any exact details about what these provisions are all about and why suddenly these provisions have come and exact details have not been shared with the investors. So that's a huge amount. And even Crystal has not given any update about what this provision is all about. And in spite of that, you got the A rating. So that's something we have not able to understand. And my third question is, I've been part of this investor call for quite a long time. And you've always been very optimistic, you know, you'll be coming up with great results in coming quarters. But you know, whenever the quarter results count. We never see that kind of results happening from the company side and there is always a quarter happening. When do we see a continuous basis that we will be having good quarters and the profits will remain better than last quarter? So these are my three questions. I hope you can answer them properly. Thank you.

Sudipta Mukherjee, Other

Let's see. Sorry, if I go wrong, because it was multiple questions together, so I may miss the flow.

Viren Patel, Analyst — Balaji Investments

If you want, I can break it up in three, if you can go by.

Sudipta Mukherjee, Other

So one was the order book when it is executable, second is that quarter-to-quarter result, and the third was related to some provision. 700 crores. Yeah, yeah, yeah. So, I think that provision thing is, I think, two quarters or three quarters. We have already given a clarification about that. So, there is no point of again and again.

Viren Patel, Analyst — Balaji Investments

But, sir, what exactly that is not able to understand? What is it?

Sudipta Mukherjee, Other

We don't have the document right now. It's a published document and company given a note on that. Please go through and we'll be very happy to answer you if you have a separately, if you want, we can clarify again. First, go through that. I don't have the paper right now with me. And it was definitely done on... In apprehension of the situation of the geopolitical reasons to remove the uncertainty, because the company was venturing into a growth path, which actually relates to your question of a sustainable growth. So, I'm very happy to know that in every quarter, you have been participating in the call, and we really appreciate. Patience and your belonging to the organization. And it is our utmost responsibility to give the best out of ourselves and return to you as a shareholder. And if you are in the calls and if you are noticing with belongingness to the company, then you must have noticed that the company has transformed last A couple of years, particularly from 2022-23 to till date, and it was... The company had the highest number of orders from Indian railways in the history of its life, and the company's history goes back to 80 years. And I mean, from there to today, we have recognized the issue. The question you have asked that when we have a sustainable growth, so we came out with a clear thought process that we have to de-risk our business by removing the over-dependence, and if our co-strength is manufacturing, let us focus on manufacturing, let us focus whatever we are doing in terms of our core business, like freight rolling stock, the foundry, and the other niche components, let us have Strength, which is global. And that's what we are doing. We have also decided that we will not put all the eggs into the same bucket while we maintain our leadership. And as a proud Indian, we will be a global company. At the same time, we will have diversified portfolio. So this we mentioned as strengthening the core. We will have a sustainable contribution of the business in the top line of the company in and around 4,000 to 5,000 crores in the coming days, and balance 5,000 to 6,000, we wanted to create a mirror with various business plans like our air agencies, like wheel, passenger mobility components, and passenger trains, and also in breakaway businesses like defense and renewables. So these are very well-need plan of the company. The company has clearly focused last three and a half years, or more particularly last two and a half years, on creating the capability within the organization. And then once we have got convinced about it, we came to you, published our Vision 2030, which Mr. Mukherjee was mentioning as Text Marco 2.0, and we are on that track. And you can see that... Thank you. Or even before that, in the freight rolling stock or in the foundry business, the railway contracts used to constitute 95% or 90% of the order. And today we are 80 plus 85% private and export orders and balancer of railway. We heavily depend or hugely depend on Indian Railway. We are sold out to the history of Indian Railway. So being Atmanirwar, we want to be a global Indian company who not only serves the world-class products to the Indian Railway, but also supplies to the world as I'm making India. This is how is the theme, and we feel we have given you a result which is better than the last quarter. There are some force-major and geopolitical situations which is not unique to TexMarco. It affects our life. We can't say anything on that, but we are very much on track, and we are very much hopeful that we will be giving you better results even from the next quarter onwards.

Viren Patel, Analyst — Balaji Investments

So, this 10,000 crore will be executive in...

Sudipta Mukherjee, Other

I'm sorry I missed that part, but I'm also not sorry because I'm repeating, you have not heard my first opening remark. I mentioned to you that all the rolling stock orders are executable in the next 10 quarters.

Viren Patel, Analyst — Balaji Investments

Oh, fantastic. Thank you. So, we expect that in coming quarters, the result will be better than last quarter. That is all. We can look at the...

Sudipta Mukherjee, Other

We must expect and you must have faith and trust in us.

Viren Patel, Analyst — Balaji Investments

Thank you so much.

Sudipta Mukherjee, Other

Really appreciate your time. Thank you so much. Thank you.

Operator

Thank you. A reminder to all the participants that you may press up and want to ask a question. The next question comes from the line of Sandeep Mukherjee from SKP Securities Ltd. Please go ahead.

Sandeep Mukherjee, Analyst — SKP Securities Ltd

Yes, sir. Thanks for the opportunity. Sir, what will be the pending number of wagons for Q2?

Sudipta Mukherjee, Other

Q2 specific is difficult to say, we have an order book of around 7200 wagons, I think, if I'm not wrong, so which...

Indrajit Mukherjee, Chairman

Can you reframe the question?

Sudipta Mukherjee, Other

No, no. He is asking the pending wagon orders.

Indrajit Mukherjee, Chairman

No, no. The question is different. What is the question? Can you repeat, please?

Sandeep Mukherjee, Analyst — SKP Securities Ltd

Sir, what will be the pending number of wagons? Number of wagons I am mentioning. Then you already have to answer it. Yes. Okay. 7200. And this is split. Yes, sir. This is as on date. After execution of Q2. And my next question is, sir, what will be the volume from the steel foundry or the steel foundry dispatch in H1FI27?

Sudipta Mukherjee, Other

That is a little difficult for me to answer because it will depend on the wagon numbers and few orders coming in, but we should be able to deliver in and around 35,000 to 40,000 metric ton minimum, and at least 25 to 30 percent, which I was referring to, should be exports. Thank you. And which was not there. I mean, this is something which is good, going to happen with the company.

Sandeep Mukherjee, Analyst — SKP Securities Ltd

Okay, sir. Thank you. Thank you very much.

Operator

Thank you. The next question comes from the line of Hari Kumaras, who is an individual investor. Please go ahead.

Hari Kumaras, Analyst — Individual Investor

Thank you once again, sir. Am I audible, sir? Yeah, the recent government said that our share of the total order has been less. Is there any strategic reason, sir, or we are not, we don't have the capacity?

Sudipta Mukherjee, Other

We have enormous capacity, sir. Unfortunately, the government decided to distribute the option, exercise the option quantity. Based on a specific contract, and it calls for that whoever had executed that particular type on that particular contract got the more order, you know. So it happened in that way, but it is a cycle. Now it doesn't stop us to get our option quantity from our order when government needs these packets. Okay. So it's only a matter of timing and optic, and government has been very fair, and we look forward because we have our certain approaches lying with the ministry related to the same coal power generation, and it's a good amount.

Hari Kumaras, Analyst — Individual Investor

Okay, sir, and this power transmission, like the national grid expansion is going on, sir, are we eligible, are we planning to participate in them also, sir?

Sudipta Mukherjee, Other

We are already participating in various electrical tenders, and just to give you a kind of a feel that we are very hopeful, you can see that our Growth has been phenomenal in terms of achievement of the top line in the electrical business, which is never before. And we crossed, I mean, we reached almost to 50 crores in one quarter. So in a run rate multiplied, it is going, I mean, it has all the possibilities to touch upon four figure, which is going to be a significant jump. And we have an order backlog of around 1,600 crores to be executable within this financial year and next.

Hari Kumaras, Analyst — Individual Investor

Thank you, sir. Thank you for the detailed explanation.

Operator

Next question comes from the line of Naveen Sahadev from ICICI Securities Limited. Please go ahead.

Naveen Saradev, Analyst — ICICI Securities

And thank you for the opportunity. So just to confirm, did you mention that we need not set up any facility in South Africa and everything can be then exported from India itself? Is that correct or that's still under evaluation?

Sudipta Mukherjee, Other

That's not correct. We will be putting up a facility in South Africa because we have to carry out the maintenance and we want to have a much more bigger pie. Of the businesses, this is not the end of all. This is a very good beginning, we can say. I mentioned that the locomotives mostly will be supplied from India. It will be, we are looking for a make in India locomotive to supply.

Naveen Saradev, Analyst — ICICI Securities

Understood. So then from that perspective, is there possibility of any revenue of the South African order accruing in second half of this fiscal, or it will largely be in the next fiscal onwards only?

Sudipta Mukherjee, Other

It will be next fiscal.

Naveen Saradev, Analyst — ICICI Securities

And I always appreciate the way you have diversified your overall order book, so congratulations on that. And that's it from me.

Operator

Thank you, ladies and gentlemen. As there are no further questions, we have reached the end of question and answer session. I now hand the conference over to management for closing comments.

Indrajit Mukherjee, Chairman

This is Indrajit Mukherjee. I request Shuripto to conclude the meeting.

Sudipta Mukherjee, Other

Okay. So, thank you, everyone. I mean, it has been really encouraging the way you participated and asked questions, and your compliments makes us more responsible, and we can promise that we are very honestly and very transparently trying to... And we want to engage with you more. And we are here. I mean, we have taken all kinds of possible measures in terms of, as I have emphasized, that the key pillars is the financial discipline, cost. Visibility of earning some revenues at the earliest. It's too ambitious to call for this financial year, but I'm just telling that the way the management is agile and focusing on it to have the work done, and we want to really try to put the company into a robust, sustainable growth model when some of you were very conscious and eager that we perform better each and each every quarter and in the coming years. So that is the focus of the management. And look forward for your continued support. All the best wishes for the upcoming festivals and look forward to engage with you more. Any questions, anything specific, you may please feel free to connect Sandeep, who is our deputy CFO and the new industrial relations person. And we'll be very, very happy to answer you and engage with you and take your advice. Keep you informed. Thanks a lot.

Operator

Thank you. On behalf of ICICI Securities and TextMicroRail and Engineering Limited, that concludes this conference. Thank you for joining us, and you may not disconnect your line.