Rail Vikas Nigam Ltd Q3 Results: Profit Down 13%, Revenue Slips 3%
Business and Industry Overview:
Rail Vikas Nigam Limited (RVNL), a Central Public Sector Enterprise has been given the status of a Navratna PSU in India. It was established in 2003 under the Ministry of Railways. The organization aims to execute project development, financing, and implementation for all types of railway infrastructure. The primary focus of RVNL is to implement transportation infrastructure projects related to Indian Railways while mobilizing extra-budgetary resources through Special Purpose Vehicles (SPVs). Over its two decades of operation, RVNL has completed more than 150 railway projects. It has also expanded its focus to a broader range of infrastructure projects, both domestically and internationally. RVNL arranges financial resources, undertakes project execution, creates project-specific SPVs, and commercializes projects. After RVNL completes a railway project, the respective Zonal Railway operates and maintains it under specific financial arrangements. In the fiscal year 2021-22, RVNL successfully completed 18 projects, with a total of 102 projects completed since its inception up to March 2021. Currently, there are 72 projects at various stages of implementation by RVNL. The company is publicly traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
As of March 31, 2023, the Indian railway network covers a route length of 68,584 kilometers (42,616 miles). The track sections are rated for speeds ranging from 80 to 200 kilometers per hour (50 to 124 miles per hour), with the maximum speed achieved by passenger trains being 160 kilometers per hour (99 miles per hour). Indian Railways, one of the largest railway networks managed under a single entity, transported approximately 19.8 million passengers and 2.4 million tonnes of freight each day in 2009, making it one of the world’s largest employers. The railways play a crucial role in transporting passengers and cargo across India’s vast territory, and RVNL is the only authority responsible for building and maintaining railway infrastructure.
Latest Stock News:
On February 14, 2025, Rail Vikas Nigam’s stock price decreased by 2.19%, closing at ₹378.95 per share. The stock is currently trading at ₹370.65 per share. During the day, the stock reached a high of ₹387.40 and a low of ₹365.90. The company has a market capitalization of ₹78,992.43 crore, with a 52-week high of ₹647 and a low of ₹213. The BSE recorded a trading volume of 609,577 shares.
RVNL on Friday (February 14) reported a 13.1% year-on-year (YoY) dip in net profit at ₹311.6 crore for the third quarter that ended December 31, 2024. In the same period in FY24, the company saw a net profit of ₹358.6 crore.
At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) was down 3.9% YoY to ₹239.4 crore in Q3FY25 over ₹249 crore. The EBITDA margin was largely flat at 5.2% compared to 5.3% in the corresponding period in the previous fiscal.
Segmental Information:
New Lines/Doubling: The company has completed 1,343 km of project length, which includes 119 km of New Line, 925 km of Doubling, and 299 km of Railway Electrification, all of which have been handed over to the Zonal Railway. Additionally, it completed 863 km of the Metropolitan Transport Project.
Railway Electrification: The company commissioned 299 route km (681 track km) of pure Railway Electrification works.
Metro: RVNL commissioned the Joka-Taratala (13 km) section of Kolkata Metro and the New Garia-Hemanta Mukherjee (11 km) section of the New Garia-Biman Bandar Section.
Subsidiary Information:
High Speed Rail Corporation of India Limited: The High Speed Rail Corporation of India Limited (HSRC) is an SPV incorporated in 2012 as a subsidiary of RVNL to implement high-speed rail projects in India.
Kinet Railway Solutions Ltd: RVNL has established a private company, Kinet Railway Solutions Ltd, which will act as the SPV signing the manufacturing-cum-maintenance agreement with the Ministry of Railways.
Kyrgyzindustry-RVNL: RVNL also formed a 50:50 joint venture with the Kyrgyz company Kyrgyz Industry. This joint venture will develop rail, road, and other infrastructure in Kyrgyzstan.
Q3 Highlights:
- Revenue went down to ₹4591 in Q3 FY25 from ₹4676 in the last quarter Q3 FY24.
- EBITDA was down 3.9% YoY to ₹239.4 crore in Q3FY25 over ₹249 crore.
- Shares of Rail Vikas Nigam Ltd ended at ₹360, down by ₹18.95, or 5%, on the BSE.
Financial Summary:
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 4,676.00 | 4,591.00 | 20,282 | 21,733 |
| Expenses | 4,676 | 4,328 | 20,282 | 21,733 |
| EBITDA | 246 | 263 | 1,244.00 | 1,346.00 |
| OPM | 5% | 6% | 6% | 6% |
| Other Income | 326 | 284 | 1,004 | 1,183 |
| Net Profit | 326.00 | 295.00 | 1,268 | 1,463 |
| NPM | 6.97 | 6.43 | 6.25 | 6.73 |
| EPS | 1.56 | 1.41 | 6.08 | 7.02 |