Rs 1,00,000 Crore Order Book: Railway Infrastructure Company Reports Revenue of Rs 19,923 Crore & Net Profit of Rs 1,282 Crore in FY25 and Announces 17.20 Per Cent Dividend
The stock gave multibagger returns of 250 per cent in just 2 years and a whopping 2,300 per cent in 5 years.
Rail Vikas Nigam Ltd, a Navratna company, was established in 2003 by the Government of India for various rail infrastructure projects. The company has delivered good profit growth of 21 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33.4 per cent. As of March 31, 2025, RVNL has a strong order book of over Rs 1,00,000 crore, focusing on railway, metro and overseas projects.
According to Quarterly Results, the net sales decreased by 4 per cent to Rs 6,4276 crore and net profit declined by 4 per cent to Rs 459 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales decreased by 9 per cent to Rs 19,923 crore and net profit decreased by 19 per cent to Rs 1,282 crore in FY25 compared to FY24. The company has a market cap of over Rs 85,000 crore and the shares of the company have an ROE of 14 per cent and an ROCE of 15 per cent. The Board has recommended a final dividend of Rs 1.72 per share (i.e. 17.20 per cent) on the paid-up equity share of face value of Rs 10 each of the company for the financial year 2024-25.
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Earlier, the company emerged as the Lowest Bidder (L1) for a domestic project awarded by IRCON International Limited, involving the supply, installation, testing, and commissioning of various signalling, telecommunications, and EIMWB materials. This includes the implementation of distributed/centralised Electronic Interlocking (EI) installations at ten new stations, six new IBSs across several block sections, a new Section Control System with related communication equipment in the Gevra Road-Pendra Road section, and a new Telephone Exchange and EIMWBs at suitable locations. The project also entails alterations and modifications to existing interlocking installations at the Kusmunda Block Station (KBS) yard and the East Cabin of the SECL SILO Siding (KMKA) yard, with an overall broad consideration of Rs 1,78,64,60,939.78 and a completion timeline of 11 months, inclusive of the monsoon period.
As of March 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.84 per cent stake. The stock gave multibagger returns of 250 per cent in just 2 years and a whopping 2,300 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.