Rail Vikas Nigam posts ₹302.51 crore Q2FY25 profit, auditors flag ₹1,462.86 crore KRCL receivables
Rail Vikas Nigam's Q2FY25 results show a QoQ profit rebound, but YoY earnings contraction, JV losses, and auditor-emphasized KRCL receivables highlight execution and credit risk. Order inflows decelerated sharply and disclosed backlog covers only ~0.5 quarters of revenue, increasing near-term growth uncertainty amid ongoing margin compression. The combination of thin pipeline and disputed recoveries is likely to weigh on investor risk appetite toward the name.
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▼ Bearish
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Rail Vikas Nigam reported a 39% quarter-on-quarter rise in standalone net profit to ₹302.51 crore in Q2FY25, while profit fell 18.3% from a year earlier. Consolidated net profit came in at ₹286.89 crore, down 27.2% year-on-year. Statutory auditors highlighted recoverable dues from joint venture Krishnapatnam Railway Company Limited (KRCL) of ₹1,462.86 crore, including ₹889.95 crore in interest charges.