Rail Vikas Nigam will host an investor conference call on Monday, August 12, 2024, at 5:00 PM IST to discuss its financial performance for the quarter ended June 30, 2024. The session provides investors with a direct channel to management regarding the latest operational metrics and quarterly outcomes. This disclosure is made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Management Participation

The call will feature key executives from Rail Vikas Nigam who will address investor queries. The management team represented includes:

• Pradeep Gaur, Chairman and Managing Director
• Rajesh Prasad, Director (Operations)
• Sanjeeb Kumar, Director (Finance) & CFO

Dial-in Details

Investors can join the conference via universal access numbers or international toll-free lines provided by Antique Stock Broking Limited. The dial-in details are listed below:

Participants may also use the Express Join feature with a DiamondPass link available on the invitation notice. For technical enquiries, Vishal Periwal from Antique Stock Broking Limited can be contacted at +91 22 6911 3414 or via email.

Post-Call Availability

A transcript of the conference call will be hosted on the company’s official website, https://rvnl.org/ , after the conclusion of the event. This ensures that all stakeholders have access to the detailed discussion points raised during the session.

Rail Vikas Nigam Limited reported a consolidated net profit of ₹223.92 crore for the quarter ended June 30, 2024, marking a 5.4% year-on-year increase from ₹212.66 crore in Q1FY24. The Navratna CPSE’s consolidated revenue from operations grew by 3.3% to ₹4,073.80 crore, driven by continued execution momentum in rail infrastructure projects. However, statutory auditors flagged significant receivable risks, noting that ₹1,485.01 crore remains outstanding from joint venture partner Krishnapatnam Railway Company Limited (KRCL), including ₹851.81 crore in interest.

The results were approved by the Board of Directors on August 8, 2024, following review by the Audit Committee. V.K. Dhingra & Co., the statutory auditors, conducted a limited review under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also appointed M/s R.M. Bansal & Co. as its Cost Auditor for FY25 during the meeting.

Financial Performance

Standalone profit after tax stood at ₹217.80 crore, up from ₹193.72 crore in the previous year’s corresponding quarter. Total standalone income reached ₹4,326.33 crore, with revenue from operations contributing ₹4,064.27 crore. Other income remained stable at ₹262.06 crore.

Auditor Disclosures on KRCL

A critical disclosure in the audit report concerns the financial exposure linked to Krishnapatnam Railway Company Limited (KRCL). The auditors noted that while RVNL has been incurring project expenditures regularly, it has received insignificant amounts from KRCL during the quarter and in prior years. As of June 30, 2024, the total receivable from KRCL stands at ₹1,485.01 crore. This amount includes ₹851.81 crore attributable to interest accruals.

Furthermore, RVNL is entitled to departmental charges at 5% of the total work cost as per the Code for Engineering Department of Indian Railways. However, following a representation from KRCL seeking a waiver, the management has decided to keep this claim in abeyance pending a detailed review by the Board of Directors. This pause in claiming statutory dues highlights ongoing contractual negotiations and potential cash flow implications.

What the Numbers Show

The divergence between top-line growth and bottom-line expansion warrants attention. While consolidated revenue grew by only 3.3%, standalone net profit expanded by approximately 12.4% (from ₹193.72 crore to ₹217.80 crore). This disproportionate rise in profitability is largely attributed to the company’s adoption of the New Tax Regime under Section 115BAA of the Income Tax Act, 1961, effective from FY24. By paying corporate income tax at a lower rate of 22% plus applicable surcharge and cess, rather than the previous 30% rate, RVNL has improved its post-tax margins. Consequently, current tax expenses are not directly comparable with those reported for Q1FY24.

Earnings per share (basic) for the consolidated entity were reported at ₹1.07, compared to ₹1.03 in the previous year’s corresponding quarter. The equity share capital remained unchanged at ₹2,085.02 crore.