RVNL shares fall 3% after Q2 results miss, operating cash flow turns negative

Shares of state-run Rail Vikas Nigam Ltd. (RVNL) will be in focus on Wednesday, November 12, as the company's stock price will be reacting to the September quarter results that were reported after market hours on Tuesday.

RVNL's revenue was the only metric that increased on a year-on-year basis during the quarter, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and EBITDA margins, along with the company's net profit declined from the same quarter last year.

Additionally, RVNL's operating cash flow turned negative at the end of the first half of the financial year.

As of September 30, RVNL's operating cash flow stood at a negative ₹1,254 crore, from a positive ₹1,878 crore in March, and positive ₹1,755 crore during the same quarter last year.

RVNL's numbers were better on a quarter-on-quarter basis. Revenue was above expectations from last year but missed expectations compared to Bloomberg Consensus estimates.

Shares of RVNL are trading 2.2% lower on Wednesday at ₹310.65. The stock is down 6% in the last one month and 26% on a year-on-year basis. The stock has declined nearly 50% from its all-time high of ₹647 that it had hit in 2023.