Rail Vikas Nigam (RVNL) hosted a
conference call on May 30, 2023. In the conference call the company was
represented by Pradeep Gaur, Chairman
& Managing Director; Rajesh Prasad,
Director (Operations) and Sanjeeb Kumar, Director (Finance) and CFO.
Key takeaways of the call
Physical Performance in FY23 as
well as revenue/PAT was for the period is all time high. RVNL has commissioned
railway line length of 1044 km in FY23.
Rail line commissioned in last 2 years crossed 1000 km.
Physical performance in Q4FY23
was much higher than Q4FY22. So full
benefit of it not captured in Q4FY23 financials and remaining part will get
captured in Q1FY24 financials.
OB outstanding at end of March
2021 was Rs 56000 crore plus (it was about Rs 55-56000 crore as end of March
2022) and of which orders won through competitive bidding is about Rs 20000
crore. Of the current order book about
Rs 36977 crore orders were from Railways.
New line orders were for about Rs 18000 crore, metro rail orders were Rs
11000 crore.
The company is successfully
transitioning to competitive bidding market from Indian Railway assigned
contracts model. The focus is currently more on getting more and more orders.
However given strong technical ability the execution of strong order book in
time to come will boost revenue growth and profitability. So the rate of growth of about 4.64% reported
in FY23 will gain momentum going forward soon.
The business development
model contracts which RVNL bagged
through competitive bidding, it is doing lot of value engineering by which the
margin is to improve in the time to come unlike projects assigned and SPV
projects where margin remain same.
RVNL- TMH (Transmashholding of
Russia) JV that won the mandate to build 200 vande bharat trains. There is no
dispute between Russian partner and RVNL.
Many of suppliers and bankers especially
those from Western Europe and US will be confident if RVNL have majority or
major stake in JV. But Russians are not
comfortable with that but that will be sorted out soon. No
compromise on timeline i.e. may/june 2025 by which the first 2 prototype trains
to be tested and this will be adhered to.
Kirgizstan Order update - things will
move sooner than later.
SPVS turned in improved
performance in FY23. The traffic went up in Kutch Railway Company,
Krishnapatnam Railway Company (KRCL) and Bharuch
Dahej Railway Company (BDRCL). Angul
Sukinda Railway (ASRL) already commissioned and operational with improved
traffic. In FY23, PAT of Kutch Rail Company has
increased by about 70% from Rs 137 crore profits to Rs 232 crore, The PAT of
KRCL was a profit of Rs 25.8 crore against loss in FY22.
Eyeing so many infra projects
apart from railways. In time to come it will be announced.
Of the 182 projects assigned by
IR so far about 140 projects got commissioned.
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