Rail Vikas Nigam Ltd (RVNL) expects the growth rate to come back to pre-pandemic levels soon, Rajesh Prasad, Director-Operations said on Wednesday.

“If we get the cash flow in time, we will be able to complete many projects. We think the growth rate will come back to pre-COVID levels. Earlier we had a CAGR (compound annual growth rate) of 35 percent and we can come back to that level,” Prasad told CNBC-TV18.

He added that the Ministry of Railways had assigned the company 183 projects and of those, they have completed and commissioned 102 projects.

Prasad’s comments come after the company posted a strong set of fourth-quarter numbers with margins expanding and strong profit growth.

Talking about the outlook for the business going forward, Rajesh Prasad, Director-Operations, RVNL, said they execute 30-35 percent of the railway infrastructure, and their orderbook currently stands at Rs 75,000 crore.

For the first time, the company has crossed Rs 1,000 crore profit before tax mark in FY21, he said.

Going forward, RVNL would be on track to clock revenues of around Rs 20,000 crore for FY22, Prasad said. In the last fiscal, the company recorded a revenue of Rs 15,403. He asserted that they are on track to complete many pending infrastructure projects, which depend on the cash flow from the government.

Prasad said RVNL is a mini-Ratna company. The status was accorded to the firm in 2013 and it is now undergoing the process to get the Navratna status.

RVNL reported a jump of 32 percent in revenues in Q4 at Rs 5,578 crore versus Rs 4,221 crore year on year. Similarly, the YoY earnings before interest, taxes, depreciation, and amortization (EBITDA) was up 70 percent at Rs 354 crore versus Rs 208 crore.

The EBITDA margins were up 6.3 percent versus 4.9 percent. The net profit of the company in Q4 was up 26.7 percent YoY at Rs 313 crore against Rs 247 crore.

For the entire interview, watch video

First Published:Jun 30, 2021 2:34 PM IST