Rail Vikas Nigam (RVNL) Q4 08/09 earnings summary

Executive summary

• FY09 project turnover rose 5% YoY to Rs 1,698.38 crore; profit after tax increased to Rs 40.83 crore from Rs 28.43 crore.

• Execution reached 2,885 km of a 7,112 km project portfolio by March 31, 2009; the order book stood at ~Rs 19,000 crore.

• The Board recommended an Rs 8 crore dividend, up from Rs 5 crore in FY08.

Financial highlights

• Project turnover was Rs 1,698.38 crore versus Rs 1,618.73 crore in FY08; project expenditure for SPVs and other organizations contributed to margins.

• Gross profit increased to Rs 68.10 crore from Rs 46.78 crore; PAT rose to Rs 40.83 crore from Rs 28.43 crore.

• Net worth reached Rs 2,151.07 crore versus Rs 2,119.09 crore; reserves and surplus increased to Rs 66.55 crore from Rs 35.08 crore.

• Paid-up equity capital increased to Rs 2,085.02 crore from Rs 2,015.02 crore, reflecting additional Government of India equity.

Outlook and guidance

• FY10 MoU targets: 256 km gauge conversion, 219 km doubling, 115 km railway electrification and 8 km new line; planned expenditure ~Rs 1,571 crore.

• A second ADB loan of ~$500 million was under sanction processing; five projects had completed bankability studies and procurement preparations.

• The project order book was ~Rs 19,000 crore after transfer of five projects involving ~Rs 2,046 crore of capital expenditure.