“Rail Vikas Nigam Limited (RVNL) has incorporated a wholly owned subsidiary company βCOMPANY RAIL VIKAS NIGAM LTD. (ONE PARTNER)β in Saudi Arabia on October 18, 2024. The certificate of registration of the company was received on October 21, 2024,” the company said in an exchange filing.
This move aligns with RVNL’s global expansion strategy, following the creation of subsidiaries in Dubai in June 2024 and Uzbekistan in August 2024.
Meanwhile, RVNL has been securing several major contracts in recent weeks. The company recently emerged as the lowest bidder for a metro construction project from the Maharashtra Metro Rail Corporation Limited, winning a Rs 270 crore work order.
On Monday, RVNL’s shares closed at Rs 465.6, down 2.4% on the BSE, while the benchmark Sensex fell 0.09%. Its shares have surged 155% in 2024 to date and 1190% over the past two years, with the company currently holding a market capitalization of Rs 97,088 crore.
In Q1 FY25, the company posted a 35% decline in consolidated net profit to Rs 224 crore, down from Rs 343 crore in the same quarter last year. Its revenue from operations during the April-June 2024 period also fell 27% to Rs 4,074 crore against Rs 5572 crore posted in the same period of last year.EBITDA during the reporting first quarter declined 48% YoY to Rs 189 crore, compared with Rs 349 crore in the last year quarter. Meanwhile, margins too fell 180 bps YoY to 4.5%.The company undertakes and executes the project development, financing and implementation of projects related to rail infrastructure. Further, it also mobilises financial and human resources for project implementation.
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