RVNL Share Price Snaps Three-Day Rally To Fall Over 7% After Q2 Profit Miss

Rail Vikas Nigam Ltd.'s share price snapped three-day rally to fall over 7% on Friday as its profit declined in the second-quarter, missing analysts' estimates. The company's consolidated net profit declined 27% year-on-year to Rs 286.9 crore in the quarter ended September, according to an exchange filing. Analysts polled by Bloomberg had estimated a profit of Rs 356 crore.

Revenue from operations declined 1.2% to Rs 4,854.95 crore in the July–September period as against Rs 4,914.3 crore in the year-ago period.

• Revenue down 1.2% to Rs 4,854.95 crore. (Bloomberg estimate: Rs 5,160 crore).

• Ebitda down 9% to Rs 271.5 crore. (Bloomberg estimate: Rs 310 crore).

• Margin narrows 50 basis points to 5.6%. (Bloomberg estimate: 6%).

• Net profit down 27% to Rs 286.9 crore. (Bloomberg estimate: Rs 356 crore).

During the quarter, the company incurred a net loss of Rs 15.2 crore from its joint venture and associates as compared to a gain of Rs 24.2 crore last year. Finance costs and depreciation also increased as against a decline in other income for the business.

Shares of the company fell as much as 7.23% to Rs 443.30 apiece. The stock pared losses to trade 4.7% lower at Rs 455.20 apiece as of 11:12  a.m. compared with 0.1% decline in Nifty.

From its lifetime high of Rs 647 per share that it hit on July 15, the stock has fallen over 30%. The stock has risen 148% on a year-to-date basis and 178% in the last 12 months. Total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 43.8.

Out of the three analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.4%.