RVNL Q1 results: Stock crashes 5% after railway PSU posts 35% decline in PAT

State-owned Rail Vikas Nigam Ltd (RVNL) Ltd reported a 35 per cent decline in its consolidated net profit for the first quarter ending June 2024, with earnings of ₹224 crore, compared to ₹343 crore in the same quarter last year.

After posting the first quarter results, the shares of the railway PSU also crashed over 5 per cent to ₹537. 55 on Thursday's trading session. The stock has risen by 367 per cent over the past 12 months.

Track RVNL's Q1 results live updates

Revenue from operations during the April-June 2024 period dropped by 27 per cent, reaching ₹4,074 crore, down from ₹5,572 crore in the corresponding period of the previous year.

EBITDA for the first quarter dropped 48 per cent year-on-year to ₹189 crore, compared to ₹349 crore in the same quarter last year. Additionally, margins declined by 180 basis points year-on-year to 4.5 per cent.

On a sequential basis, net profit decreased by 53 per cent from ₹478 crore reported in the previous March quarter. Revenue from operations also fell 39 per cent quarter-on-quarter, down from ₹6,714 crore in the March 2024 quarter.

Total expenses decreased by 25 per cent year-over-year to ₹4,036 crore in the June quarter, compared to ₹5,374 crore in the same period last year.

The company reported finance costs of ₹137 crore for the reporting quarter, down from ₹146 crore in the previous year’s quarter.

RVNL focuses on two main goals: rapidly implementing projects to build and enhance rail infrastructure capacity and raising extra-budgetary resources for Special Purpose Vehicle (SPV) projects.

The company is involved in the development, financing, and execution of rail infrastructure projects and also mobilizes financial and human resources for their implementation.

RVNL went public in late 2019 with an IPO price of ₹19 per share. Since its listing, the stock has delivered positive annual returns each year. This year has been its best calendar year performance to date, surpassing the 166 per cent gain it achieved in 2023.