New Delhi: Rail Vikas Nigam Limited (RVNL) has given strong returns to investors during the last one year. It quadrupled the investors' money in the last 9 months. But, today RVNL shares fell by 7 percent. The reason for this is the weak quarterly results of the railway company. Its profits have decreased drastically. RVNL shares were trading at Rs 451.90 with a decline of 5.43 percent till 12.30 pm.

RVNL's profit fell by 27 percent

RVNL's net profit in the September quarter fell 27 percent year-on-year to Rs 287 crore. Revenue also declined marginally to Rs 4,855 crore. The company's EBITDA at operational level fell 9 percent to Rs 271.5 crore. At the same time, EBITDA margin also fell by 0.40 percent to 5.6 percent.

Poor results were anticipated

Analysts had earlier predicted that RVNL's quarterly results would be weak. In fact, RVNL has a lot of orders. It has also won many big orders in the last few days. But, the pace of completion of its projects is very slow. This is having a negative impact on its financial performance.

What does RVNL do

RVNL is a Navratna company. Navratna companies have the freedom to invest up to Rs 1000 crore without taking permission from the government. RVNL builds railway infrastructure. Talking about its customers, this list includes railways as well as many other ministries, departments and government companies of the central and state governments.

How is RVNL shares?

RVNL shares have given great profits to investors. Last year on November 10, 2023, RVNL shares were at Rs 155.45. This is its one-year low. From here, it jumped 316 percent in 9 months to reach Rs 647.00 on July 15, 2024, which is its record high.

However, the upward trend in RVNL shares came to a halt here. After hitting a high of 647, RVNL shares have fallen by nearly 30 per cent. In the last one month, it has fallen by more than 7 per cent. In the last 6 months, it has seen a jump of nearly 70 per cent.