Rail Vikas Nigam on November 9 reported a 3.5 percent rise in its consolidated net profit for the quarter ended September 2023 (Q2FY24) to Rs 394.4 crore.
The rise in profit was despite the company's revenue from operations remaining flat when compared to the same period last year at Rs 4,914.32 crore. A 33.4 percent on-year rise in income from other operations to Rs 296 crore also helped RVNL report a rise in its bottom line for the quarter ended September 2023.
Sequentially, the company's net profit also rose 15 percent, from Rs 343 crore during the quarter ending June 2023. The revenue from operations of the RVNL declined nearly 12 percent quarter-on-quarter as it stood at Rs 5,571.57 crore during Q1FY24.
RVNL has seen its topline fall consecutively for two straight quarters in a row. The company's revenues have fallen from Rs 5,719.9 crore during Q4FY23 to Rs 4,914 crore last quarter.
Last quarter, analysts had raised concerns over the company's falling topline and following its results, RVNL's shares had fallen over a percent in the morning trade on August 14.
In standalone terms, net profit jumped 24 percent from Rs 217.69 crore during Q2FY23 to Rs 296.45 crore during the period under review. The revenue from operations in the standalone terms remained flat at Rs 4,909.79 crore during the period under review.
Last month, the company's joint venture RVNL-MPCC received a letter of award for engineering works and supply of 50 mm machine crushed stone ballast, complete track works including linking of track works in connection with gauge conversion work between Nadiad- Petlad of the Vadodara Division on Western Railway.
The order is valued at Rs 245 crore and has to be completed in 24 months.
Recently, the Ministry of Railways unveiled the conferment of Navratna status upon RVNL. This elevation in status will result in a heightened transfer of authority, increased operational latitude, and greater fiscal independence for RVNL. These transformative changes are poised to significantly catalyze the advancement of the company, especially as it endeavors to extend its influence beyond the domestic railway domain, venturing into international ventures.
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