Rail Vikas Nigam Ltd. saw lower incremental growth as compared with the past, as revenue incurred from projects started to taper down, according to Chairman and Managing Director Pradeep Gaur.
Revenue growth on projects taken from bidding has expanded 3-4 times year-to-year, he said. Gaur expects the company to reach a compound annual growth rate of 25-30% in the next few years.
Scaling To Other Sectors
Since RVNL was established as an executive arm of Indian Railways, it received projects assigned by the Ministry of Railways. But from FY22, the company has started to expand to other sectors "way beyond its mandate", Gaur said.
These sectors include metros, national highways, ports, irrigation and solar projects.
45% of RVNL's orders include metro contracts and the company, along with its joint venture partner, plans to build 120 sets of Vande Bharat trains. “We are also doing a strategic port in Maldives, solar projects in Central Asia and Middle East, along with a transmission line in Africa."
RVNL's margin while executing railway projects was stable as compared with an improved margin currently. This is because the margin received from various sectoral projects rely on their performance, said Gaur.
In the past, the company only had employees from the railway sector, but presently, it has people working from different sectors, depending upon the projects, he said.
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