Shares of Rail Vikas Nigam Ltd. (RVNL) fell as much as 8.5% in opening trade on Friday after the company reported its December quarter results.
Both net profit and revenue for the state-run railway company declined on a year-on-year basis. Despite a 16% jump in other income, RVNL's net profit fell 6.4% from last year. Even revenue declined 6% year-on-year.
EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation declined by 9.6% year-on-year to ₹249.1 crore, while margin narrowed by another 20 basis points to 5.3% from 5.5% last year. When compared on a sequential basis, the margin declined by 80 basis points from 6.1% in September.
Rail Vikas Nigam has been one of the outperformers among railway companies over the last 12 months, during which the stock has risen over 270%.
The government had sold a strategic 5.4% stake in RVNL in July last year at ₹119 per share. The stock has more than doubled even from those levels.
Based on the December shareholding pattern, the government still holds 72.84% stake in RVNL, which is valued at over ₹40,000 crore.
Shares of RVNL are down 8% at ₹259. This is the biggest single-day drop seen in the stock since January 23 this year.
First Published: Feb 9, 2024 9:23 AM IST
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