RVNL share price in focus today: Rail Vikas Nigam Limited (RVNL), a railway infrastructure company, saw its shares drop 3% in early trade on Wednesday, November 12, to the day’s low of ₹308 apiece following the release of the company’s September quarter performance, which came in lower than Street estimates.
The company, post-market hours on Tuesday, reported a decline in both operating level and net profit, while revenue was the only metric that showed growth on a year-on-year (YoY) basis. The major railway reported a 20% fall in consolidated net profit to ₹230.52 crore in the September quarter, impacted by higher expenses.
It had clocked a net profit of ₹286.90 crore in the year-ago period, the company said in an exchange filing. The company’s total income rose to ₹5,333.36 crore from ₹5,136.07 crore during July–September FY25.
Its operating expenses during the reporting quarter rose to ₹5,015 crore from ₹3,972 crore in Q1 and ₹4,731 crore in the year-ago quarter. At the operating level, the company reported an EBITDA of ₹217 crore, down from ₹256 crore in the same period last year, with margins contracting by 100 basis points YoY to 4%.
Though the numbers were weaker on a YoY basis, they showed improvement compared to the preceding June quarter. Net profit and revenue improved by 72.8% and 31% on a quarter-on-quarter (QoQ) basis, respectively.
RVNL bags multiple orders in recent weeks
The company last week secured another order worth ₹272 crore from Central Railway, which involves the design, supply, erection, testing, and commissioning of a 220/132/55 kV traction substation, sectioning posts (SPs), and sub-sectioning posts (SSPs) in a 2 x 25 kV traction system (Scott Connected Transformer) for the Daund–Solapur sections of Central Railway. The project is aimed at meeting a 3,000 MT loading target on an EPC mode, according to the company’s regulatory filing.
This marks the company’s fourth order in less than two months. In October, Rail Vikas Nigam received three orders, including a major infrastructure project worth ₹165.5 crore awarded by the North Eastern Railway as part of its regular business operations.
RVNL share price trend
The company’s shares resumed their losing streak in October after ending a three-month slide in September. In November so far, the stock has extended its decline, losing another 4%. The shares have been on a one-way slide since hitting a fresh all-time high of ₹647 apiece.
At current levels, the shares are trading 40% lower than their 1-year high of ₹502 apiece.
In terms of yearly performance, the stock is down 25.25% so far. If this trend continues toward the end of the year, it will mark the company’s first yearly decline since its 2019 listing.
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