RVNL Share Price Rises Despite Q4 Profit Slip

Shares of Rail Vikas Nigam Ltd. rose over 2% on Thursday, even as its fourth quarter net profit declined.

The company's net profit fell 4.1% to Rs 459.2 crore in the quarter ended March, as compared to Rs 478.6 crore in the same period last year. Revenue from operations declined 4.3% to Rs 6,427 crore in the fourth quarter, as against Rs 6,714 crore in the year-ago period.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 5.2% year-on-year to Rs 432.8 crore. The Ebitda margin contracted 10 basis points to 6.7%.

RVNL on Wednesday has announced final dividend of Rs 1.72 per equity share for fiscal 2025, subject to approval at the ensuing annual general meeting. The company announced distribution of Rs 358 crore to shareholders in the fourth quarter of this fiscal.

In comparison, the company had issued a final dividend of Rs 2.11 apiece on Sept. 23, 2024 and a final dividend of Rs 0.36 on Sept. 20, 2023.

Shares of RVNL rose as much as 2.15% to Rs 420.90 apiece, the highest level since May 20. It erased gains to trade 0.47% lower at Rs 410.10 apiece, as of 10:04 a.m. This compares to a 0.83% decline in the NSE Nifty 50.

The stock has risen 20.06% in the last 12 months and fallen 3.08% year-to-date. Total traded volume so far in the day stood at 1.7 times its 30-day average. The relative strength index was at 68.41.

Out of three analysts tracking the company, one maintains a 'buy' rating and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 34.3%.