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Informist, Friday, Feb. 14, 2025

 

--Rail Vikas Oct-Dec net profit INR 2.95 bln vs INR 3.26 bln year ago 

--Rail Vikas Oct-Dec revenue INR 45.91 bln vs INR 46.76 bln year ago 

--Rail Vikas Apr-Dec net profit INR 8.15 bln vs INR 10.30 bln year ago 

--Rail Vikas Apr-Dec revenue INR 135.24 bln vs INR 150.32 bln year ago 

 

By Aman Aryan

 

MUMBAI – Fall in revenue and increase in finance cost weighed on Rail Vikas Nigam Ltd.'s earnings for the December quarter. The railway infrastructure company's net profit fell for the third straight quarter, down 9.5% on year. However, the fall in net profit was lower than that 35% and 18% in the previous two quarters. Revenue, too, fell for the third straight quarter.

 

Rail Vikas Nigam posted a net profit of INR 2.95 billion for the quarter under review, down from INR 3.26 billion in the year-ago quarter. The company's profit was lower than IDBI Capital's estimate of INR 3.46 billion, which would have meant an on-year growth of 6%. The company's net profit has fallen four times year-on-year in the last five quarters.

 

The Delhi-based company's revenue fell nearly 2% on year to INR 45.91 billion. The fall in revenue was more than the 1?ll it registered in the previous quarter. Sequentially, the company's revenue fell about 6% while its net profit declined 2.5%. 

 

An over 2% on-year fall in total expenses, which was mainly driven by a 2.6?ll in operational expenses, could not offset the impact of the decline in revenue. The company's total expenses for the December quarter were INR 44.80 billion and operational expenses were INR 42.21 billion. A 4% on-year rise in finance cost to INR 1.45 billion amplified the pressure on the company's earnings for the December quarter.

 

The tax outgo for the quarter was INR 995.6 million, lower than INR 1.03 billion a year ago. The company incurred an expense on project 'Railway' executed on behalf of Krishnapatnam Railway Co. Ltd., a joint venture of the company. The amount recoverable from the joint venture as on Dec. 31 was INR 14.41 billion. The company has received a request from the joint venture to waive the aforesaid departmental charges.

 

For the nine months ended December, the company's net profit fell 21% on year to INR 8.15 billion and revenue fell 10% to INR 135.24 billion. The company declared its earnings after market hours. Friday, shares of the company closed at INR 359.90 on the National Stock Exchange, down 5%.  End

 

Edited by Ashish Shirke

 

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