Railway PSU Braithwaite & Co has been declared a Miniratna-1 category company as the government also plans its merger with Rail India Technical and Economic Services (RITES).
Braithwaite chairman and managing director Yatish Kumar said the company would go by what the government decides. A railway board official, meanwhile, said that the merger was a part of the plan to restructure six railway PSUs, proposed by Sanjeev Sanyal, chief economic advisor to the finance minister. The idea was to merge Rail Vikas Nigam (RVNL) with Indian Railway Construction (IRCON), Railtel Corporation with the Indian Railway Catering and Tourism Corporation (IRCTC) and Braithwaite with RITES. The announcement was likely to be made in the Budget, the official said.
Kumar added that Braithwaite has become a debt-free company and it has been awarded Miniratna-1 status since it has already achieved above Rs 30-crore profit before tax and has been reporting net profit for consecutive three years, a criteria for getting Miniratna -1 status. The company will likely end the fiscal with a Rs 700-crore turnover, up from Rs 609 crore achieved in FY21. The company’s turnover was Rs 130.89 crore in FY 18.
Kumar said at the company level, Braithwaite was eyeing an IPO in 2025-26 and aims a turnover of Rs 2,500 crore by then. The rail PSU, operating in 10 verticals, has Rs 1,562 crore worth of orders at present. The Miniratna-1 status would enable Braithwaite to invest in debt-based schemes of Sebi-regulated public sector mutual funds enhancing the company’s credit worthiness.