RVNL shares tumble amid weak December quarter earnings

RVNL shares drop: State-owned Rail Vikas Nigam Limited (RVNL) shares have fallen as much as 9.26 per cent to hit an intraday low of Rs 255.60 per share on Friday after the company reported weak December quarter (Q3FY24) earnings.

Despite an impressive 259.41 per cent surge in stock value in 2023, the railway company’s profit decrease over 6 per cent to Rs 358.6 crore in Q3FY24 from Rs 382.4 crore in the same quarter of the previous fiscal year (Q3FY23).

The stocks have remained under pressure in the last five trading sessions, falling over 10 per cent.

RVNL’s revenue fell nearly 6.5 percent to Rs 4,689.3 crore from Rs 5,012 crore in the corresponding quarter of the previous fiscal year.

The company's operating profit, or EBITDA, also took a hit, plunging 9.6 percent to Rs 249 crore in the December quarter. Additionally, margins decreased by 20 basis points year-on-year to 5.3 percent from 5.5 percent in the same quarter of the previous fiscal year.

As of 10:21 am, RVNL shares were trading 7.76 per cent lower at Rs 259.85 per share.