Rail Vikas Nigam (RVNL) Q4 06/07 earnings summary

Executive summary

• Project expenditure, including SPVs, rose 46.59% to Rs. 1,236.24 crore; 778 km of doubling, new line, gauge conversion and electrification works were completed in FY2006-07.

• Income from project execution reached Rs. 6.54 crore and profit for the year was Rs. 3.59 crore; net worth rose to Rs. 1,668.26 crore.

Financial highlights

• Project expenditure, including SPVs, increased to Rs. 1,236.24 crore from Rs. 843.35 crore, up 46.59% YoY.

• Income from project execution rose to Rs. 6.54 crore from Rs. 4.65 crore, up 40.65%; profit for the year increased to Rs. 3.59 crore from Rs. 1.89 crore, up 86.77%.

• EPS increased to Rs. 0.04 from Rs. 0.02; net worth rose to Rs. 1,668.26 crore from Rs. 1,194.24 crore, up 36.69%.

• Interest income from banks was Rs. 11.66 crore; IRFC interest of Rs. 54.22 crore was treated as a pass-through recoverable from the Ministry of Railways.

Outlook and guidance

• FY2007-08 MoU targets: 340 km gauge conversion, 70 km doubling, 20 km electrification and 15 km new line, with planned expenditure of around Rs. 1,800 crore.

• Thirteen projects or project sections were targeted for completion in FY2007-08.

• ADB-funded project disbursement target for calendar 2007 was US$78; all but one ADB-funded project were planned for completion by Dec. 2008, with the final project by June 2009.

• A second ADB loan was under preparation and expected to be substantially larger than the first; RVNL proposed addressing implementation delays experienced under the initial loan.