RVNL shares are down 25% this year and they react to Q4 results today

RVNL bags ₹39-cr NMDC order for residential campus project in Hyderabad's Banjara Hills


Shares of Rail Vikas Nigam Ltd. (RVNL) are in focus on Tuesday, May 26, after the company reported a weak set of earnings in the fourth quarter.

The company’s profit after tax (PAT) plunged nearly 60% to ₹187.7 crore in the fourth quarter from the previous year’s ₹459.12 crore. It also declined 42% sequentially from ₹322.8 crore.

RVNL’s profitability was impacted due to a troika of factors. Its other income declined by 54% from last year to ₹85 crore. Its profit from JV and associate companies fell to just ₹4 crore from over ₹52 crore in the base quarter and ₹56.4 crore in the December quarter. Additionally, operating expenses were also on the higher side on a year-on-year basis.

The railway PSU’s operating performance also took a hit during the quarter, with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declining by 38% to ₹268.5 crore, while margins narrowed to 4% from 6.7% in the base quarter and 4.7% in December.

The only silver lining was a 4% growth in revenue at ₹6,695.9 crore from the previous year’s ₹6,426.88 crore. This also grew 43% sequentially from ₹4,684.5 crore.

RVNL also accounted the closure of its joint venture company Kyrgyzindustry-RVNL CJSC in Kyrgyzstan.

Shares of RVNL ended the previous session 0.6% higher at ₹272.7 apiece. The stock has declined 10.9% in the past month and by 24.6% this year, so far. The stock is down over 60% from its record high of ₹647 that it had surged to in 2024.

Also Read: Brigade Enterprises signs JDA for ₹850 crore residential project in Hyderabad



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