Rail Vikas Nigam Limited (RVNL) shares opened 7 per cent lower at Rs 336.25 on February 17. This happened after the company reported a net profit of Rs 311 crore for the third quarter of the current financial year (FY25), marking a decline of nearly 13 percent from the net profit of Rs 359 crore reported in the third quarter of FY24.
RVNL released its results for the quarter ended December 31, 2024, when the market opened after February 14. The stock witnessed a significant decline on February 17 morning when the market reopened after the weekend.
Meanwhile, the railway company’s revenue from operations declined nearly 3 per cent year-on-year to Rs 4,567 crore in Q3 FY25. It had earlier reported revenue from operations at Rs 4,689 crore in Q3 FY24. RVNL’s total expenses rose 2 per cent to Rs 4,480 crore. Its earnings per share (EPS) stood at Rs 1.49.
Along with the Q3 results, RVNL announced that it had incurred expenditure on a project executed on behalf of Krishnapatnam Railway Company Ltd (KRCL), a joint venture of the company.
However, KRCL has not made the payment as per the terms of the agreement and is yet to pay Rs 1,441 crore to RVNL by December 31, 2024, the company said. The amount paid includes interest of Rs 927 crore.
After opening significantly lower, RVNL shares recouped some losses and traded at Rs 347 per share. The stock is still down nearly 4 percent from its previous close price. The stock has witnessed a lot of volatility in the past one month, falling nearly 18 per cent to current levels.
This happened after railway stocks surged on expectations of a hike in capital expenditure allocation in Budget 2025, and then fell sharply after no changes were made on that front.
