RVNL — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND CHIEF FINANCIAL OFFICER - RAIL VIKAS NIGAM LIMITED

Moderator · Conference Operator

MR. VISHAL PERIWAL - IDBI CAPITAL

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024

Moderator · Conference Operator

Ladies and gentlemen, good day and welcome to the Rail Vikas Nigam Limited Post Results

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024 And in Rishikesh-Karnaprayag Prayag project, we had executed 60 kilometers of tunneling in one year.

In the metro section in Kolkata, we have got commissioned three more sections inaugurated by the Honorable Prime Minister.

And I have got few statistics.

If you permit me, then I can tell you that in last 10 years, the turnover in FY2013-14 was INR2492 crores.

And this year it is INR21,732 crores.

So you can calculate how many times it has gone up.

The bottom line in the 2013-14 was 157 crores.

This year it was 1463 crores.

The project expenditure on March 31st, 2014 is 15,600 crores.

And up to 2024 March, it is 1,55,000 crores.

The 10 key projects, which is basically meant for the manufacture, maintenance of all kinds of rolling stocks, we had done two numbers.

Now up to March 2024, it is 19 numbers.

And total railway infrastructure developed as on 31st March 2014 was 5,100.

Now it is 16,300.

And so there is a quantum jump and the performance during the financial year has been extraordinary.

And the Bohe workshop, which we have completed and commissioned during this financial year, again, is a basically state of art kind of factory and has been appreciated by all.

So RVNL has been moving forward.

And I will say a few things about the business development.

Give me a second.

Yes.

So in the FY23-24, we have participated in 142 number of bids.

And total bids cumulative up to March, we have submitted 286.

So you can see that in last, we started the bidding in the second part of FY21-22.

And in last two years and only a few months, we have participated in 286 bids, costing bmore than 1,50,000 crores.

And we have backed so many projects.

The success rate is more than 20%.

We have also submitted bids in the international market, Bangladesh, Maldives, Sri Lanka, UAE, Oman, and Rwanda, Uzbekistan, Saudi Arabia, Nepal.

So we are trying to increase our footprints.

We have also submitted the expression of interest in Botswana Railways, then Namibia Trans Kalhari project team.

So what I want to tell you is that we are trying to increase our footprints.

We have already opened international offices in South Africa, Oman, UAE, Maldives.

So what I wanted to just tell you is that in time to come, we want to increase our footprint.

And we really are very keen to increase the order book.

Presently, the order book is around 85,000 crores.

And earlier during the investors meet, I had said that in FY23-24, we are trying to get 21,000 crores plus the top line.

And the bottom line, I had said 1,400 crores plus.

Both of the things have happened.

And I had also said that we are focusing more on the bottom line.

And that is why the growth rate of the bottom line is 15%.

How much?

Bottom line, it has increased by 15.38%.

Regarding the SPVs, there has been a turnaround in Krishna Patnam Rail Company Limited.

The traffic in terms of the loading million tons and the rakes have increased by 25% with respect to the previous financial year.

And previous to previous financial year, it is more than 100%.

So what I wanted to tell you is that Krishnapatnam and the debt of the Krishnapatnam has also gone down to 663, which has been taken from the financial institutions.

May 17, 2024 The trade receivable is also improving.

We are awaiting for the arbitration award.

And everything is online.

And we have got the efficiency of the private sector and the authority and the trustworthiness of government sector.

With this motive, we have been working.

And now I have given enough feelers for the questions.

Ranodeep: · Very heartening to know that, sir. Thank you for that. So my last question, when it comes to the

Sure.

Noted, sir.

Thank you.

Sir, a question on the overall macro, sir.

Like if I see, like 2019 our sales used to be around INR10,000 crores and five years down the line, we are talking about INR21,000 crores.

Similarly, I think in terms of profits also, 2019 our profits used to be around INR680 crores, INR700 crores.

And now we are at around almost touching INR1,500 crores.

So both the sales and profit has been doubling over a scale of five years.

Now in the backdrop of we having an order book of almost INR85,000 crores, do you foresee the same trend continue in the next five years to come?

Very heartening to know that, sir.

Thank you for that.

So my last question, when it comes to the margins for our nominated railway projects, if I am not wrong, we work at an 8.5% model.

Now, if I combine this with the project that you are bagging from the market, what is our aspiration in the coming years in terms of margins, what kind of numbers are we looking there?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024

Ranodeep: · Very heartening to know that, sir. Thank you for that. So my last question, when it comes to the

Appreciate all your responses, sir.

Thank you and all the best.

Moderator · Conference Operator

Thank you.

The next question is from the line of Shreyans Mehta from Equirus Securities.

Please go ahead.

Shreyans Mehta

Yes, thanks for the opportunity.

So my first question is pertaining to the Vande Bharat trainset, you know, the order which we had won.

So I just wanted to understand in terms of capex in case if we have to invest anything.

And secondly, do we get any mobilization advances, you know, to start this project?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024 the party who has awarded this project?

And so this too, you know, would be the first question, I guess.

May 17, 2024 exposure and experience.

So, depending upon the client's eligibility criteria, if it will fit, then we will go alone.

See, we have made a policy even for the different kinds of infrastructure projects that if we are having the credentials, we are going alone.

We are not tying up with anybody.

And here is also the case that if some client wishes that the eligibility criteria, we will be able to satisfy, then we will go alone.

There is no point to go with anybody else.

Shreyans Mehta

Got it.

And, sir, one last question.

How much have you invested in, you know, different JVs till date and how much we do need to invest?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024 opportunities come, either we will be able to approve it ourselves.

The net worth is around INR7,867 crores.

So, roughly INR8,000 crores.

Moderator · Conference Operator

Thank you.

The next question is from the line of Tushar Raghatate from Kamayakya Wealth Management Private Limited.

Please go ahead.

Tushar Raghatate

Good afternoon, sir.

And thank you for the opportunity.

Sir, I just wanted to know…

Moderator · Conference Operator

Sorry to interrupt you, sir.

May I request you to use your handset, please?

Tushar Raghatate

Sir, I just wanted to know like what percentage of our order book is high-speed railway traveling?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024

Moderator · Conference Operator

Thank you.

The next question is from the line of Vishal Periwal from IDBI Capital.

Please go ahead.

Vishal Periwal

Yes, sir.

Thanks for the opportunity.

Sir, you did mention that the current order book is INR85,000 odd crores.

Can you give a break up in this nomination and bidding?

What is the amount?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024

Moderator · Conference Operator

Thank you.

The next question is from the line of Ranodeep from MAS Capital.

Please go ahead.

Ranodeep: · Very heartening to know that, sir. Thank you for that. So my last question, when it comes to the

Thank you for the opportunity.

Sir, I wanted to understand have quantified the opportunity that we have for the IMEEEC the corridor that the Government of India has planned?

India Middle East.

Thank you, sir.

My last question, in terms of railway electrification, which used to be a major component of our order book and I believe if I am not wrong I think more than 90% of our country is already railway electrified.

Are we still looking at this opportunity in the years to come?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024 So, if you see the aim of the government of India, what were the aims?

The number one was that the green transportation system which includes the railway electrification then connecting the unconnected area which is good for the economic and social growth of the country.

So, we are again looking for that.

Then the, basically, capacity augmentation project, there are some routes which are highly congested.

Presently, the traffic loading is around 1,500 million tons.

They are planning 2,000 by 2030, 3,000 million tons.

For that, the capacity augmentation projects, there are a large number of projects which will come up.

We are keen for that.

Then the turnkey projects, then in the manufacturing process, safety, quality, safety, S&T work, signalling and telecommunication work.

So, we are very key station development work.

But we are basically interested more and more interest in capacity augmentation projects because that is the kind of projects which we have handled in the past.

We have got the expertise in execution of this typical railway infrastructure project.

Ranodeep: · Very heartening to know that, sir. Thank you for that. So my last question, when it comes to the

So, my last question, sir, if I'm not wrong, we did a JV with a South African company Jackson Green which was in the solar sphere.

So, I wanted to understand what is our aspirations of getting into solar?

I appreciate the response, sir.

Thank you and all the best.

Thank you.

Moderator · Conference Operator

Thank you.

The next question is from the line of Ketan Jain from Avendus Spark.

Please go ahead.

Ketan Jain

Sorry if my question is repeated.

My question was on order inflow guidance for FY25. What is the order inflow guidance for FY25 and revenue guidance for FY25?

RAIL VIKAS NIGAM LIMITED · MR. SANJEEB KUMAR - DIRECTOR OF FINANCE AND

May 17, 2024 parameter which we want to monitor is that we should have the order book all the time three to four times and roughly INR1,00,000 crores.

And accordingly whatever we are participating in the market nomination has been totally stopped.

So, whatever order book inflow will be there, it will be through the bidding only.

So, we would like to have the inflow of approximately INR20,000, INR25,000 crores in a year.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, due to time constraint, we will take that as the last question.

We would conclude the conference now.

On behalf of Rail Vikas Nigam Limited, thank you for joining us and you may now disconnect your line.

Questions and answers

Moderator · Conference Operator

The first question is from the line of Ranodeep from MAS Capital.

Ranodeep: · Very heartening to know that, sir. Thank you for that. So my last question, when it comes to the

Sir, I wanted to check any update on the Kyrgyzstan deal of INR18,000 crores.