RVNL share price today: State-owned Rail Vikas Nigam Limited (RVNL) shares fell 7 per cent as the company announced disappointing results for the quarter ended September 30, 2024. RVNL's net profit fell 27 per cent to Rs 287 crore in the second quarter of FY 2024-25 compared to last year. Meanwhile, the company's revenue registered a marginal decline to Rs 4,855 crore. Experts expect a decline in revenue and profit due to low project execution and slow growth in the company's core segment.

RVNL revenue declines 9% YoY

On the operational front, Rail Vikas Nigam Limited's (RVNL) Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) declined by 9 per cent YoY to Rs 271.5 crore from Rs 298.2 crore in Q2FY2023-24. This resulted in a 40 basis point contraction in EBITDA margin from 6 per cent in September quarter of FY2023-24 to 5.6 per cent in Q2FY2025.

RVNL develops and constructs railway infrastructure

Rail Vikas Nigam is a Navaratna PSU dedicated to the development and construction of railway infrastructure across India. The company has wide-ranging involvement in a wide range of railway projects, including new line construction, track doubling, gauge conversion, electrification, workshops, metro projects and construction of bridges, cable-stayed structures and institutional buildings.

RVNL also raises financial resources for its projects

Additionally, RVNL offers financial resource mobilisation services to support its projects. The company's clients include the Indian Railways as well as central and state government ministries, departments and public sector undertakings.

RVNL share price falls

In the morning, RVNL shares were trading 5 per cent lower at Rs 453.20 on the National Stock Exchange (NSE). The stock has gained nearly 150 per cent this year, much higher than the Nifty's 10% gain. In the past 12 months, the stock has rallied 180%, nearly tripling investors' capital, while the Nifty has gained 23% during the same period.