The shares of Rail Vikas Nigam Ltd (RVNL) dropped 7 percent to open at Rs 336.25 apiece on February 17. This comes after the company reported a net profit of Rs 311 crore for the third quarter of the current financial year (FY25), marking a fall of nearly 13 percent from the Rs 359 crore net profit reported in Q3 of FY24.
RVNL released its results for the quarter which ended on December 31, 2024 in the post market hours of February 14. The stock saw a significant decline on February 17 morning as markets reopened after the weekend.
The railway company's revenue from operations meanwhile declined nearly 3 percent year-on-year to Rs 4,567 crore in Q3 FY25. It had earlier reported revenue from operations at Rs 4,689 crore in Q3 FY24. RVNL's total expenses rose 2 percent to Rs 4,480 crore. Its earnings per share (EPS) stood at Rs 1.49.
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Along with the Q3 results, RVNL announced that it has incurred expenditure on a project executed on behalf of Krishnapatnam Railway Company Limited (KRCL), a joint venture of the company. However, KRCL has not made payments as per the terms of agreement and is yet to pay Rs 1,441 crore to RVNL, as of December 31, 2024, the company said. The given amount includes Rs 927-crore interest, it added.
After opening significantly lower, RVNL shares recovered some losses to trade at Rs 347 per share. The stock is still nearly 4 percent lower than its previous closing price. The shares have seen significant volatility in the past one month, falling nearly 18 percent to the current levels. This comes as railway stocks rallied on expectations of a hike in capex allocation in Budget 2025, and then strongly tumbled after no changes were made on that front.
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