New Delhi: On the last day of the trading week i.e. Friday, pressure is being seen in the stock market, due to which the shares of many companies have fallen. However, there can be many factors behind the decline. Meanwhile, the shares of government-owned company Rail Vikas Nigam Limited (RNVL) fell by more than 5 percent. The decline in the shares of RNVL has come after the company presented the results of the second quarter of the financial year.

5 percent drop
 

On Friday, shares of Rail Vikas Nigam Limited slipped 5.36% from its previous close of Rs 477.85 to Rs 452.25. The decline comes after the company reported a major drop in profit and a marginal drop in revenue for the quarter ended September 30. The company's market cap is now Rs 94,970 crore, and its P/E ratio is 65.30. However, the company's shares have gained 162% so far in the year 2024, and have grown 840% in the last two years, indicating a good growth.
 

The company's profit fell in the September quarter

RNVL said in its quarterly results that the company's net profit fell 27% every quarter to Rs 286.9 crore, while it was recorded at Rs 394.3 crore in the same quarter last year. The reason for this decline was the decline in income in the operating margin. The company's revenue from operations also fell 1.2% year-on-year (YoY) to Rs 4,855 crore, while it was Rs 4,914.3 crore in the same period last year. Apart from this, EBITDA declined by 9% to Rs 271.5 crore, due to which the margin came down from 5.6% to 6%, which reflects operational pressure.

However, quarterly (QoQ) the company's profit grew by 28.1% and revenue increased by 19.2%, indicating some improvement every quarter. The company's tax expense also declined marginally and stood at Rs 4,731.5 crore, although it increased by 17.2% every quarter.