Rail Vikas Nigam Limited (RVNL), a Navratna company under the Government of India, has released its financial results for the first quarter, showcasing a mixed performance. The company also announced significant changes in its joint venture shareholding structure.

Financial Performance

For the quarter ended June 30, RVNL reported the following key financial metrics:

On a standalone basis, RVNL's revenue from operations stood at ₹3,925.30 crore, while the consolidated revenue was slightly lower at ₹3,908.77 crore. The company's standalone net profit for the quarter was ₹127.85 crore, with the consolidated net profit reaching ₹134.36 crore.

Joint Venture Shareholding Restructure

The Board of Directors of RVNL has noted a significant reshuffling in the shareholding pattern of its joint venture, Kinet Railway Solutions Private Limited. The changes are as follows:

This restructuring sees Joint Stock Company Metrowagonmash's stake halved from 70% to 35%, while Joint Stock Company Locomotive Electronic System significantly increases its share from 5% to 40%. RVNL maintains its 25% stake in the joint venture.

New Subsidiary Establishment

RVNL has established a new wholly-owned subsidiary named "Sabbavaram Sheelanagar Road Development Limited" in Andhra Pradesh. The subsidiary has been incorporated with an initial share capital of ₹1 lakh, consisting of 1,000 shares at ₹100 each.

Ongoing Financial Matters

The company continues to face challenges with one of its joint ventures, Krishnapatnam Railway Company Limited (KRCL). As of June 30, RVNL has receivables of ₹1,275.25 crore from KRCL, including ₹889.95 crore in interest on delayed payments. The company has changed the interest application from compound to simple interest effective October 1, while KRCL has requested this change to be applied retrospectively from April 1. The matter is currently pending with RVNL's Board of Directors.

Additionally, KRCL has requested a waiver of departmental charges, which typically amount to 5% of the project completion cost. This matter is also under consideration by RVNL's Board of Directors.

Accounting Policy Change

During the quarter, RVNL implemented a change in its accounting policy regarding mobile phones and tablets provided to employees. These items will now be charged to the profit and loss account instead of being capitalized as Property, Plant and Equipment. The company states that this change has no material impact on the financial results.

Rail Vikas Nigam Limited continues to operate in the "Development of Rail Infrastructure" segment, focusing on enhancing India's railway infrastructure and expanding its operational footprint.

Rail Vikas Nigam Limited (RVNL), a prominent player in the Indian railway infrastructure sector, has announced a significant addition to its leadership team. The company has appointed Mr. Prakash Singh as the new Executive Director (Electrical), effective July 25, 2025.

Key Highlights

• New Appointment: Mr. Prakash Singh joins RVNL as Executive Director (Electrical).
• Effective Date: The appointment is effective from July 25, 2025.
• Previous Role: Singh previously served as Chief Engineer/General on deputation in NCRTC.
• Senior Management: Singh will be part of RVNL's Senior Management Personnel.

Appointment Details

Rail Vikas Nigam Limited made this announcement in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's official statement, signed by Company Secretary & Compliance Officer Kalpana Dubey, confirms that Mr. Singh will be considered part of the Senior Management Personnel from the date of his appointment.

About Prakash Singh

While detailed information about Mr. Singh's professional background is limited, the company disclosure reveals that he brings valuable experience from his previous role as Chief Engineer/General on deputation in NCRTC (National Capital Region Transport Corporation). This background suggests that Singh has significant expertise in railway engineering and management, which will likely be beneficial in his new role at RVNL.

Implications for RVNL

The appointment of Mr. Prakash Singh as Executive Director (Electrical) is expected to strengthen RVNL's leadership in electrical engineering aspects of railway infrastructure development. His experience and insights from NCRTC could potentially contribute to RVNL's ongoing and future projects in railway electrification and related areas.

Additional Information

• Mr. Singh does not hold any equity shares in Rail Vikas Nigam Limited as of the appointment date.
• The appointment aligns with RVNL's commitment to maintaining a strong and experienced leadership team to drive its operations and strategic initiatives in the railway sector.

Rail Vikas Nigam Limited continues to play a crucial role in the development and modernization of India's railway infrastructure. The addition of Mr. Prakash Singh to its senior management team underscores the company's focus on enhancing its expertise and capabilities in key technical areas.