Texmaco Rail swung to a profit in the quarter ended June 30 after being mired in losses in the corresponding quarter of the previous year.

Also, the company's unit Texmaco Transtrak has signed a memorandum of understanding (MoU) with CAF Signalling, a subsidiary of CAF Spain. AK Vijay, CFO and ED of the company spoke to CNBC-TV18 about the earnings and the MoU.

“Texmaco today is a major player in rail EPC business and in signalling we are the pioneers. When the railway went for privatisation of signalling, Kalindee was the company which has started with it first and all the businesses in respect of signalling was primarily done by Kalindee in the initial stages. But earlier the signalling and all were basically manual in Indian railway system and gradually they are going to electronic thing. One of the very important component for this electronic signalling is the part which we are now agreeing with CAF Spain. The basic part is electronics inter-locking, which is basically required and necessary to let the train move even if there is slightly waterlogging in the tracks,” said Vijay.

“Till now the entire market was controlled by the multinational companies, so Texmaco coming in the field and joining hands with CAF certainly will yield better results for us and we are one of the major consumers for this item,” he added.

“We are seeing an upsurge in demand,” said Vijay.