Rail Vikas Nigam (RVNL) Q4 14/15 earnings summary

Executive summary

• FY15 delivered record turnover of ₹3,141.97 crore, 18% higher PAT and 475.95 km of completed project length; consolidated statements were prepared for the first time.

• Work spans rail doubling, electrification, gauge conversion, new lines, workshops and metro projects; high-speed rail studies expanded the portfolio.

Financial highlights

• Standalone turnover rose 26% YoY to ₹3,141.97 crore; PBT was ₹236.35 crore and PAT ₹185.71 crore, up 17.97% YoY.

• Consolidated turnover was ₹3,447.73 crore, PBT ₹391.94 crore and PAT ₹322.69 crore; consolidated net worth was ₹3,017.00 crore.

• Standalone other income fell to ₹96.05 crore from ₹105.11 crore; dividend income declined ₹12.50 crore, partly offset by higher project-execution and interest income.

Outlook and guidance

• FY16 MoU targets: 261 km of doubling/third line and 210 km of railway electrification.

• Executable balance order book was projected at ~₹14,237 crore at end-FY16; current work-in-progress was expected to be completed over the following three years, making new project awards important for growth.

• Further turnover growth depends on assured Ministry funding or extra-budgetary resource directions and regular assignment of projects, given an ~18-month project-development lead time.