RVNL share price slips 7% after September quarter profit tanks 27% YoY

RVNL share price: State-owned railway company Rail Vikas Nigam Limited (RVNL) tanked up to 7.02 per cent to hit an intraday low of Rs 444 per share on Friday, November 08, 2024. 

 

The fall in RVNL share price came after the company announced a weak set of September quarter of financial year 2025 (Q2FY25) results on Thursday post-market hours. 

 

RVNL’s profit plunged 27.2 per cent year-on-year (Y-o-Y) to Rs 287 crore in the September quarter of FY25 (Q2FY25), from Rs 394.3 crore in the September quarter of FY24 (Q2FY24).

 

The company’s revenue, however, fell a little over 1 per cent annually to Rs 4,855 crore in Q2FY25, from Rs 4,914.3 crore in Q2FY24.

 

At the operating front, earnings before interest,tax, depreciation and amortisation (Ebitda), dropped 9 per cent Y-o-Y to Rs 271.5 crore in Q2FY25, from Rs 298.2 crore in Q2FY24. 

 

Consequently, Ebitda margin squeezed 40 basis points to 5.6 per cent in the September quarter of FY25, from 6 per cent in the September quarter of FY24. 

 

On Wednesday, November 06, RVNL announced that it has secured a letter of acceptance (LoA) for an order worth over Rs 180 crore from East Central Railway.

 

RVNL is a company based in New Delhi, specialising in the construction of rail infrastructure projects across the country. Set up in 2003, the company is actively involved in the development and implementation of various railway projects, including new lines, doubling, gauge conversion, railway electrification, workshops, metro projects, bridges, construction of cable-stayed bridges, and institution buildings. 

 

Additionally, it offers financial resource mobilisation services to support its projects. Rail Vikas Nigam Limited caters to clients such as Indian Railways, central and state government ministries, departments, and public sector undertakings.

 

The market capitalisation of RVNL is Rs 95,076.92 crore, according to BSE. The company falls under the BSE200 category.

 

At 9:29 AM, shares of RVNL were trading 4.51 per cent lower at Rs 456 per share. In comparison, BSE Sensex was trading 0.11 per cent lower at 79,451.72 levels.