State-owned Rail Vikas Nigam Ltd (RVNL) on Tuesday (January 7) said it has signed a memorandum of understanding (MoU) with GBH International Contracting LLC (GBHIC), a Dubai-based company, to collaborate on civil infrastructure projects in the Gulf Cooperation Council (GCC) region.
| Company | Value | Change | %Change |
|---|
“This is to inform you that Rail Vikas Nigam Limited (RVNL) has signed MoU with M/s GBH International Contracting LLC (GBHIC), a Dubai, United Arab Emirates-based Company,” RVNL said in a regulatory filing.
This partnership aims to leverage the strengths of both entities to identify and pursue business opportunities in the growing infrastructure sector across GCC countries.
Also Read: RVNL shares snap a nine-day losing streak post order win, peers like RITES gain up to 11%
RVNL’s net profit fell 27% year-on-year (YoY) to ₹286.9 crore, down from ₹394.3 crore in the same period last year, due to lower operating margins and reduced earnings.
Revenue from operations for the rail PSU declined by 1.2% YoY to ₹4,855 crore, compared to ₹4,914.3 crore in Q2 FY24. EBITDA dropped 9% to ₹271.5 crore, with margins narrowing to 5.6% from 6% in the year-ago period, indicating rising operational pressures.
On a quarter-on-quarter (QoQ) basis, RVNL’s profit rose by 28.1%, while revenue increased by 19.2% in Q2 FY25, reflecting some sequential improvement in performance.
Also Read: RVNL bags ₹137-crore contract from Central Railway for Bhusaval-Khandwa project
Tax expenses for the quarter fell slightly by 0.5% YoY to ₹4,731.5 crore but saw a 17.2% QoQ increase. Following the results announcement, RVNL’s stock closed up 1.7% at ₹477.55 on the BSE, marking a 162.2% return for investors so far this calendar year.
Shares of Rail Vikas Nigam Ltd ended at ₹416.45, up by ₹6.25, or 1.52%, on the BSE.
(Edited by : Shoma Bhattacharjee)
cnbctv18-forexlive
