Rail Vikas Nigam (RVNL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a year-over-year and sequential decline in both revenue and profit, attributed to project execution delays from geopolitical issues, election-related disruptions, and pending clearances in key projects like Maldives and metro lines in multiple cities.

• Board approved unaudited standalone and consolidated financial results for Q1 FY2024-25 on August 8, 2024.

• Limited review by statutory auditors found no material misstatements in the financials.

• The order book remains robust at INR 83,221 crore, providing visibility for the next four years, with major contributions from new lines and double line projects.

• Appointment of M/s R. M. Bansal & Co. as Cost Auditor for FY 2024-25.

Financial highlights

• Standalone revenue from operations for Q1 FY25: ₹4,064.27 crore, down from ₹5,446.25 crore in Q1 FY24.

• Consolidated revenue from operations for Q1 FY25: ₹4,073.80 crore, down from ₹5,571.57 crore in Q1 FY24.

• Standalone net profit for Q1 FY25: ₹217.80 crore, down from ₹333.57 crore in Q1 FY24.

• Consolidated net profit for Q1 FY25: ₹223.92 crore, down from ₹343.09 crore in Q1 FY24.

• Kolkata Metro turnover dropped 65% year-over-year in Q1, from INR 858 crore to INR 291 crore.

Outlook and guidance

• Management maintains FY25 revenue guidance of INR 22,000 crore, expecting to recover lost ground in subsequent quarters as execution normalizes.

• Anticipates continued strong order inflow, supported by government infrastructure push and recent cabinet approvals for new railway projects.

• Current tax expense is not comparable year-over-year due to adoption of the new tax regime from FY 2023-24.