Rail Vikas Nigam (RVNL) Q4 10/11 earnings summary

Executive summary

• FY11 turnover fell to ₹1,444.65 crore from ₹1,749.08 crore as projects neared completion, but gross profit and net profit rose on higher interest and dividend income.

• Project delivery reached 441 km during the year; the order book was replenished with new assignments, including 66 km of Kolkata Metro lines, while five ADB-funded projects awaited execution.

Financial highlights

• Turnover was ₹1,444.65 crore versus ₹1,749.08 crore in FY10; direct project expenditure declined to ₹1,399.63 crore from ₹1,690.38 crore.

• Gross profit increased to ₹84.51 crore from ₹80.83 crore; profit before tax rose to ₹75.45 crore from ₹67.49 crore, while net profit was ₹61.09 crore versus ₹51.91 crore.

• Interest income rose to ₹17.76 crore from ₹12.02 crore, and dividend income reached ₹15 crore versus ₹3 crore, offsetting lower project-execution income.

• Dividend recommended was ₹12.5 crore, up 25% from ₹10 crore; reserves and surplus reached ₹151.50 crore and net worth ₹2,236.52 crore.

Outlook and guidance

• FY12 MoU targets: 230 km of doubling, 190 km of railway electrification, and completion of Dankuni workshop civil works by 28 February 2012.

• FY12 project expenditure was forecast at ₹1,290 crore, with contracts worth ₹1,500 crore expected to be finalized.

• Five ADB projects, with an estimated cost of ₹5,350 crore, were expected to move to contract award and execution after the second loan negotiations concluded in July 2011.

• New project transfers and Kolkata Metro expansion were expected to support a recovery in turnover; ₹1,650 crore of contracts were awarded in FY11 versus ₹600 crore in FY10.