Rail Vikas Nigam (RVNL) Q4 09/10 earnings summary

Executive summary

• FY2009-10 project-execution turnover reached ₹1,749.08 crore, up 5.7% YoY; gross profit was ₹80.83 crore and profit after tax ₹51.91 crore.

• Physical completion totaled 391 km during the year; 22 projects had been fully completed by March 31, 2010.

• The board recommended a ₹10 crore dividend, up 25% from ₹8 crore in FY2008-09.

Financial highlights

• Project expenditure rose to ₹1,749.08 crore from ₹1,654.16 crore in FY2008-09; turnover from project activity matched ₹1,749.08 crore.

• Gross profit increased to ₹80.83 crore from ₹68.10 crore; PBT rose to ₹67.49 crore from ₹57.28 crore.

• PAT was ₹51.91 crore versus ₹40.83 crore; EPS was ₹0.25 versus ₹0.20.

• Net worth increased to ₹2,191.78 crore from ₹2,151.07 crore; reserves and surplus reached ₹106.76 crore versus ₹66.56 crore.

Outlook and guidance

• FY2010-11 MoU targets: 44 km of gauge conversion, 233 km of doubling and 142 km of railway electrification; planned project expenditure of ~₹1,250 crore.

• Seven additional projects transferred in 2010-11 involved ~₹9,300 crore of capital expenditure; new work includes metro lines and a diesel-loco component factory.

• Five projects proposed for ADB Phase II funding were prepared for tendering, but execution awaited in-principle approval and loan sanction.