Rail Vikas Nigam Ltd. reported a sharp decline in profit in the second quarter of the current financial year, weighed by higher expenses.
Consolidated net profit fell nearly 20% to Rs 230 crore in the July-September period, compared to Rs 287 crore in the corresponding quarter last year, as per results announced on Tuesday. It was the second consecutive quarter of decline.
Revenue rose 5.5% to Rs 5,123 crore, from Rs 4,855 crore.
Operational performance also lagged, with earnings before interest, tax, depreciation and amortisation down 20% to Rs 217 crore. Margin contracted to 4.2% from 5.6% last year.
RVNL is a central public sector undertaking under the Indian Ministry of Railways that functions as the main construction arm for railway infrastructure projects.
The PSU implements projects like new lines, gauge conversions, railway electrification, and major bridges, and has also expanded into metro and urban transport systems. RVNL is a "Navratna" company, which gives it significant financial and operational autonomy.
Rail Vikas Nigam share price closed 0.6% higher at Rs 317.75 apiece, ahead of the results, compared to a 0.4% gain in the benchmark Sensex. The stock has slumped 27% in 12 months.
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