Rail Vikas Nigam’s Profit Drops For Fourth Straight Quarter On Weak Revenue

Rail Vikas Nigam Ltd. posted a nearly 14% on-year fall in net profit for the March quarter to ₹3.73 billion, marking the fourth straight quarter of profit decline. The dip was largely driven by a fall in revenue, which dropped over 5% on year to ₹63.45 billion.

Sequentially, both profit and revenue improved; net profit rose 27% and revenue jumped over 38%.

Expenses for the quarter were ₹60.81 billion, down 5% on year but up nearly 36% from the previous quarter. Operating expenses, which make up over 96% of the total, declined almost 5% on year to ₹58.58 billion. Finance costs were down more than 22% on year at ₹1.17 billion, while the company’s tax outgo dropped nearly 43% to ₹839 million.

For the full year ended March, the railway infrastructure firm’s net profit dropped almost 19% to ₹11.89 billion and revenue fell 9% to ₹198.69 billion. The board has announced a final dividend of ₹1.72 per share for 2024-25.

The company also disclosed that the total pending receivables from its joint venture Krishnapatnam Railway Co. Ltd. stood at ₹13.56 billion as of March 31, including ₹8.90 billion in interest for delayed payments. The JV includes stakeholders such as Sagarmala Development Co., NMDC, the Andhra Pradesh government, Krishnapatnam Port Co., and Bramhani Industries.