Rail Vikas Nigam (RVNL) Q4 07/08 earnings summary

Executive summary

• FY 2007-08 project expenditure reached Rs.1,618.73 crore; the Directors’ Report described project-execution turnover as up 30.94% YoY to the same amount. The audited P&L separately lists turnover of Rs.1,423.11 crore.

• Profit before tax was Rs.39.34 crore, profit after tax Rs.28.43 crore and basic EPS Rs.0.21; the Board recommended a Rs.5 crore dividend.

• Nine projects spanning about 231 km were completed during the year; reported cumulative completion reached about 36% of the 6,686 km in the 55-project portfolio.

Financial highlights

• Audited P&L turnover was Rs.1,423.11 crore versus Rs.985.26 crore in FY 2006-07; project execution income was Rs.19.67 crore versus Rs.3.59 crore.

• Gross profit rose to Rs.46.78 crore from Rs.18.20 crore; PBT increased to Rs.39.34 crore from Rs.15.25 crore.

• PAT was Rs.28.43 crore versus Rs.11.27 crore; EPS was Rs.0.21 versus Rs.0.12.

• Net worth increased to Rs.2,119.09 crore from Rs.1,676 crore; paid-up share capital rose to Rs.2,015.02 crore from Rs.1,150.02 crore.

• Short-term deposit interest income was Rs.19.67 crore versus Rs.11.66 crore; direct tax paid was Rs.11.08 crore versus Rs.3.98 crore.

Outlook and guidance

• FY 2008-09 MoU targets: 240 km gauge conversion, 260 km doubling, 80 km railway electrification and 5 km new line; estimated expenditure Rs.1,725 crore.

• Longer-term project expenditure ambition was Rs.3,000 crore annually; the Chairman’s address also set Rs.2,000 crore as the current-year project-expenditure target.

• Railway Board targeted commissioning 863 km of work in FY 2008-09, versus 221 km physically commissioned across new line, gauge conversion, doubling and electrification in FY 2007-08.

• A second ADB loan was under processing; three newly assigned projects were expected to use that financing.