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Rail Vikas Nigam hosted a
conference call on May 17, 2024. In the conference call the company was
represented by Rajesh Prasad, Director Operations and Sanjeeb
Kumar, Director Finance & CFO.
Key takeaways of the call
Order book of the company as end
of Mar 31, 2024 stood at Rs 85000 crore of which 36000 crore are competitive bided
projects and balance are nominated projects.
The company has surpassed the FY24
guidance of top line of Rs 21000 crore plus and bottom-line of Rs 1400 crore.
Quantum jump in the turnover from
competitively bided projects, which was started two years ago. Turnover from bidding projects in 2023-24 was
Rs 2255 crore and of which the two projects the Indore Metro (the first
competitive bidding project for the company) and Maldives project (the first
overseas project) contributed Rs 986 crore together with margin of about 10%[While
the margin of Indore metro order was 10.66% that for Maldives was about 11%]. Typically
the nomination projects come with a margin of about 8.5%.
The company focuses on bottom-line
growth. Over the next five years the
company looks at a bottom-line growth of 15% with top-line growth around
5%.
In FY2023-24 the company put in
bids for 142 projects worth Rs 65000 crore and the success rate of the company
is about 23%. The success rate of the company in electrical
orders is much higher than civil engineering.
The company expects to bid for
150 projects with an order value of Rs 75000 crore in FY25. The company is also likely to maintain its
strike rate of about 20-25%.
Kirgizstan order update: Concept, alignment, DPR has been done. The
project is very much is viable. Waiting for the approval of DPR and project
implementation.
Investment in various SPVs/JVs/
MMLPs/subsidiaries currently stood at about Rs 1600 crore.
The aspirational OB target is Rs
100000 crore. For a growth of about 7-10% growth in revenue in next 5 years the
company has to maintain an OB in the range of Rs 75000-100000 crore.
Presently the company executes
metro orders across 7 cities.
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