State-run Rail Vikas Nigam Ltd (RVNL) on Thursday recorded a 27.24 per cent year-on-year (YoY) drop in its September 2024 quarter (Q2 FY25) net profit. During the quarter under review, the rail PSU's profit came at Rs 286.88 crore as against Rs 394.26 crore in the year-ago period. Revenue from operations fell 1.21 per cent to Rs 4,854.95 crore from Rs 4,914.32 crore in the corresponding period last year.
On a sequential (quarter-on-quarter) basis, RVNL's profit increased by 28.12 per cent and revenue moved up by 19.18 per cent in the July-September 2024 quarter.
In Q2 FY25, tax expenses slipped 0.49 per cent (YoY) to Rs 4,731.52 crore but surged by 17.21 per cent QoQ.
The quarterly results were announced shortly after market hours today. Earlier in the day, RVNL shares settled 1.69 per cent higher at Rs 477.55. At this price, the multibagger stock has delivered 162.17 per cent returns to investors in calendar year 2024 so far.
Bourses BSE and NSE have put the securities of RVNL under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Around 4.85 lakh shares changed hands on BSE today. The figure was lower than the two-week average volume of 6.46 lakh shares. Turnover on the counter came at Rs 23.23 crore, commanding a market capitalisation (m-cap) of Rs 99,570.13 crore.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 72.68 against a price-to-book (P/B) value of 12.45. Earnings per share (EPS) stood at 6.46 with a return on equity (RoE) of 17.12.
RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry to execute projects assigned to it. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning, including stages of design, preparation of estimates, calling and award of contracts, projects and contract management.
As of September 2024, the government held a 72.84 per cent stake in the rail PSU.