Latest news with #Navratna
Mint
5 days ago
- Business
- Mint
Can this railway stock manage the risks while chasing long-term growth?
Indian railway makeover is no longer a dream; it's a full-blown mission. And right at the heart of this infrastructure push is Rail Vikas Nigam Ltd (RVNL), the government arm for the mega rail projects. From electrification and track doubling to station revamps and even metro rail expansions, RVNL is quietly doing the heavy lifting for the Indian Railway's future. But here's the real question: Is RVNL just riding the PSU hype train, or does it genuinely have the steam to compound wealth long-term? In this piece, we decode the RVNL business model, its financials and much more. About RVNL Incorporated in 2003 under the ministry of railways (MoR), RVNL was set up with a clear mandate to accelerate the implementation of critical railway infrastructure projects. Acting as the MoR's primary construction arm, RVNL today is responsible for building new railway lines, electrification, major bridges, workshops, and even metro and urban transport systems. The company has mastered leveraging extra-budgetary resources, especially through the formation of Special Purpose Vehicles (SPVs), reinforcing its ability to mobilise capital beyond traditional government allocations. Its consistent performance earned it Miniratna Category-I status, a recognition that conferred greater operational autonomy. But the real game-changer came in April 2023, when RVNL was awarded the Navratna status. This recognition has not only boosted its financial independence but has strategically positioned the company to compete for larger, more complex infrastructure projects. What has RVNL built? Here's a quick overview of what makes the company a silent force in India's infrastructure story: Revenue Model of RVNL RVNL primarily earns through EPC (Engineering, Procurement, and Construction) contracts, but what's interesting is its evolving model. While EPC accounted for more than 80% of revenue, the rest comes from the project management consultancy (PMC) and other high-margin services. Fees typically range from 8.5-10%, depending on the project type, and the company is actively transitioning from nomination-based to competitive bidding models. RVNL is intricately tied to India's macro-infra goals, particularly the PM Gati Shakti National Master Plan. Competitive Landscape: Key Peers RVNL operates in a competitive environment, with key peers including: From multi-modal logistics parks (MMLPs) to streamlining freight corridors, RVNL's contributions go far beyond laying tracks, it's building India's next-gen logistics and trade infrastructure. Over the last five years, the company has demonstrated a strong and consistent growth trajectory. Turnover has grown steadily, at a compound annual growth rate (CAGR) of 10.6%. Net profit has also expanded impressively to ₹14,630 million (m) in FY24, nearly doubling in five years. It is supported by stable operating margins and a controlled cost structure. The operating profit margin has remained steady at 6%, indicating consistency in operational efficiency despite scaling up. The growing earnings per share (EPS) highlights the company's growing profitability on a per-share basis. This improvement in share also reflects management's effective capital deployment. The balanced dividend payout suggests how the company rewards its shareholders while also retaining profits for future growth. Apart from the strong financials, RVNL will significantly benefit from powerful structural drivers shaping the Indian infrastructure landscape. Sectoral Tailwinds: Railway Infrastructure Boom in India Key Growth Drivers of RVNL Risks Investors Should Know While RVNL presents a compelling growth story, investors must consider several inherent risks associated with it. Conclusion RVNL isn't laying tracks anymore, it's laying the groundwork for a bigger infra story. With strong PSU roots and expanding beyond railways, the potential is real. But new sectors bring new challenges. The real game is balancing smart diversification. Before taking any financial decision, investors should check if the stock aligns with their investment objectives or not. Match the opportunity with the risks. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
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Business Standard
21-05-2025
- Business
- Business Standard
PSU defence stock hits new high on heavy volumes; zooms 24% in 2 weeks
Bharat Electronics share price today Share price of Bharat Electronics (BEL) hit a new peak of ₹379.90 today, gaining 4 per cent on the BSE in Wednesday's intraday trade amid heavy volumes, as strong order book position provided healthy revenue visibility going forward. In the past two weeks, the stock price of the 'Navratna' defence public sector undertaking (PSU) company has rallied 24 per cent. Moreover, BEL share price has bounced back 51 per cent from its previous month low of ₹252.25, touched on April 7, 2025. At 10:43 AM, BEL shares were trading 3.9 per cent higher at ₹378 as compared to 0.95 per cent rise in the BSE Sensex index. Around 37.66 million equity shares have, together, changed hands on the NSE and BSE. Catch Stock Market LIVE Updates Today BEL Q4 results BEL reported a 15 per cent year-on-year (Y-o-Y) rise in net profit at ₹2,127 crore for the fourth quarter of financial year 2024–25 (Q4FY25). The company had posted a profit of ₹1,796.67 crore in the corresponding quarter of the previous financial year. The company reported a 6 per cent Y-o-Y increase in revenue from operations, which stood at ₹9,149.59 crore in Q4FY25, compared to ₹8,564.08 crore in Q4FY24. BEL order book As on April 1, 2025, the total order book of BEL stood at around ₹71,650 crore, including export order book of $359 million. On May 16, 2025, BEL announced that it has secured additional orders worth ₹572 crore. The major orders received by BEL include Integrated Drone Detection and Interdiction System (IDDIS), Software Defined Radio (SDR) and Data Communication Unit (DCU) for attack guns, AI based solutions for ships, simulators, communication equipment, jammers, spares, services etc. Earlier, on April 7, 2025, BEL announced that it has signed a deal with the Defence Ministry, worth ₹2,210 crore, for the supply of Electronic Warfare (EW) Suite for Mi 17 V5 Helicopters of Indian Air Force (IAF). In FY25, BEL secured orders worth ₹18,715 crore. Some of the major orders received during FY25 were BMP II Upgrade, Ashwini Radar, Software Defined Radios, Data link, Multi-Function Radars, EON 51, Seekers, Anti drone system, Airport Surveillance Radar, Sonar Upgradation, Flycatcher spares, Radar upgradation, Spares and Services etc and other projects in Non-defence sector. Order inflows for FY26 is estimated around ₹27,000 crore, excluding Quick Reaction Surface-to-Air Missile (QRSAM) order (worth ₹30,000 crore). QRSAM order is expected to be booked in Q4FY26. However, there might be some delay and may slip to Q1FY27, BEL said. The Management has guided for revenue growth of 15 per cent for FY26. It is also confident to maintain earnings before interest, taxes, depreciation and amortisation (Ebitda) margins at 27 per cent level, driven by increasing indigenise components in its subsystems and operating leverage. The Government's growing capital budget allocation and continued focus on increasing India's defence product manufacturing capability are expected to support the order inflow for BEL in the medium to long term. Additionally, the Government of India's increased focus on increasing indigenous procurement under 'Atmanirbhar Bharat' provides a unique opportunity for BEL to build its future revenue streams through development of domestic capabilities, according to analysts. ALSO READ | Brokerage View: JM Financial Institutional Securities on BEL The brokerage remains positive on BEL given the strong order backlog (₹71,600 crore), which provides revenue visibility. Besides, sustained steady margin profile, healthy order prospects, increasing business opportunity from Indian Navy (indigenization and increasing fleet), continuous focus on diversification (including anti-drone system) & exports markets and indigenisation push by the government of India augur well for the defence stock. Strengthening vendor/supplier base along with internal process improvement will help company to execute projects faster. Capex planned to be ₹1,000 crore/year for next couple of years towards capacity expansion. BEL continues to explore new growth opportunities through diversification, capability enhancement, competitiveness, modernization and export initiatives. Factoring in strong EBITDA margin guidance, analysts at the brokerage have revised their EPS estimates upwards by 3.6 per cent/4.3 per cent for FY26/27E. The brokerage firm expects revenue and profit after tax (PAT) to see a compounded annual growth rate (CAGR) of 16 per cent/12 per cent over FY25-27E. Analysts maintain a 'Buy' rating on BEL stock with a revised target price of ₹405 (₹360 earlier), valuing it at 45x FY27E (42x FY27E EPS earlier), on the back of a strong defence outlook and order pipeline. ALSO READ | About BEL BEL, a Navratna DPSU, was established in 1954 under the Ministry of Defence, the GOI, to cater to the electronic equipment requirements of the defence sector. The GOI remains BEL's largest shareholder with the current shareholding of 51.14 per cent. BEL is the dominant supplier of radar, communication and electronic warfare equipment to the Indian armed forces. The company has nine manufacturing units across India and two research units. The Bangalore and the Ghaziabad units are BEL's two major units, with the former contributing to the largest share of the company's total revenues and profits.
Fashion Network
19-05-2025
- Business
- Fashion Network
Emami Ltd Q4 net profit rises 11 percent to Rs 162 crore
FMCG firm Emami Ltd reported a 11 percent increase in consolidated net profit at Rs 162 crore ($19 million) for the March quarter of financial year 2025, as against Rs 147 crore in the year-ago quarter. The company's revenue for the quarter rose to Rs 963 crore as against Rs 891 crore in the corresponding quarter of the previous fiscal year. Emami's total expenses for the quarter witnessed a 9 percent year-on-year increase at Rs 744 crore. For the financial year 2025, Emami's net profit increased by 11 percent to Rs 802 crore from Rs 724 crore while total income increased by 7 percent to Rs 3,877 crore. Commenting on the results, Harsha V Agarwal, managing director of Emami Ltd in a statement said, 'Our core domestic business continued to demonstrate strong momentum, delivering robust double-digit growth of 11% in Q4FY25, supported by healthy volume growth of 7%. Despite ongoing geopolitical challenges, our international business also posted a resilient 6% growth during the quarter.' 'Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies,' he added. Founded in 1974, Emami Ltd offers personal care products through its portfolio of brands that includes Navratna, Boroplus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King among others.
Time of India
17-05-2025
- Business
- Time of India
Emami Q4 profit up 10.5% to Rs 162 cr
HighlightsEmami Limited reported a 10.5 percent increase in consolidated profit after tax, reaching Rs 162.17 crore for the March quarter of FY25, driven by a robust 11 percent growth in its core domestic business. The company's total income rose by 6.9 percent to Rs 3,877.30 crore in FY25, with organized trade channels contributing significantly to domestic revenues, expanding by 140 basis points year-on-year. Emami Limited's board approved a special interim dividend of Rs 2 per equity share for the 2024-25 fiscal year, while the company celebrates its 50th anniversary. Homegrown FMCG firm Emami Ltd on Friday reported 10.5 per cent increase in consolidated profit after tax at Rs 162.17 crore for March quarter FY25, helped by a volume growth in its core business. The company had posted a PAT of Rs 146.75 crore for the January-March period a year ago, according to a regulatory filing from Emami. Revenue from operations was at Rs 963.05 crore in the quarter as against Rs 891.24 crore in the year-ago period. Total expenses were at Rs 743.61 crore, up 9.3 per cent year-on-year. Total income, which includes other income, was up 9.12 per cent to Rs 984.21 crore. "Despite tepid urban mass demand, Emami demonstrated resilient performance, leveraging its strategic brand portfolio, agile execution, and omni-channel distribution capabilities with the company's core domestic business delivering robust double-digit growth of 11 per cent," Emami said in an earning statement. This was "coupled with a healthy volume growth of around 7 per cent led by key brands such as Navratna, Dermicool, BoroPlus and Healthcare range," it added. Emami's international business posted a 6 per cent growth in Q4FY25, demonstrating resilience in the face of geopolitical volatility across Bangladesh, the Middle East, and parts of Africa. It had a strong momentum across SAARC, SEA, CIS, and African markets, said Emami. In FY25, Emami's PAT increased 10.85 per cent to Rs 802.74 crore from Rs 724.14 crore a year ago. Total income rose 6.9 per cent to Rs 3,877.30 crore. Organised trade channels, comprising Modern Trade, e-Commerce, and Institutional Sales contributed 27.6 per cent to the domestic revenues in FY25, expanding by 140 basis points over the previous year. "Growth in these channels outpaced overall domestic growth, clocking 13 per cent YoY growth," it said. Commenting on the result, Vice Chairman and Managing Director Harsha V Agarwal said, core domestic business continued to demonstrate strong momentum in Q4FY25, supported by healthy volume growth of 7 per cent. "Our input costs broadly remain under control and do not pose any major challenge in the near future. Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies," he said. For the strategic subsidiaries, Emami is scaling marketplace and quick commerce presence, while driving cost efficiencies as well as launch new products in the next 3-6 months to tap into evolving consumer trends. "We expect a gradual pickup in consumption, supported by easing inflation, recent income tax benefits, higher government capex, and a more accommodative monetary policy, including potential rate cuts," he said. On the outlook, Emami said it remains confident of navigating short-term macro uncertainties through portfolio premiumisation, innovation acceleration, enhanced channel productivity, and strategic international expansion. The board of Emami also approved payment of a special (interim) dividend of Rs 2 per equity share of face value of Re 1 each for 2024-25, while celebrating 50 years of the company. Shares of Emami Ltd ended at Rs 637 apiece, up 1.07 per cent on the BSE.>
Time of India
16-05-2025
- Business
- Time of India
Emami Q4 Results: Profit jumps 10% to Rs 162 crore
Homegrown FMCG firm Emami Ltd on Friday reported 10.5 per cent increase in consolidated profit after tax at Rs 162.17 crore for March quarter FY25, helped by a volume growth in its core business. The company had posted a PAT of Rs 146.75 crore for the January-March period a year ago, according to a regulatory filing from Emami. Revenue from operations was at Rs 963.05 crore in the quarter as against Rs 891.24 crore in the year-ago period. Total expenses were at Rs 743.61 crore, up 9.3 per cent year-on-year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cracks in Concrete? Repair Methods Most People May Not Know About Concrete Crack Repair | Search Ads Search Now Undo Total income, which includes other income, was up 9.12 per cent to Rs 984.21 crore. "Despite tepid urban mass demand, Emami demonstrated resilient performance, leveraging its strategic brand portfolio , agile execution, and omni-channel distribution capabilities with the company's core domestic business delivering robust double-digit growth of 11 per cent," Emami said in an earning statement. This was "coupled with a healthy volume growth of around 7 per cent led by key brands such as Navratna, Dermicool, BoroPlus and Healthcare range," it added. Live Events Emami's international business posted a 6 per cent growth in Q4FY25, demonstrating resilience in the face of geopolitical volatility across Bangladesh, the Middle East, and parts of Africa. It had a strong momentum across SAARC, SEA, CIS, and African markets, said Emami. In FY25, Emami's PAT increased 10.85 per cent to Rs 802.74 crore from Rs 724.14 crore a year ago. Total income rose 6.9 per cent to Rs 3,877.30 crore. Organised trade channels, comprising Modern Trade, e-Commerce, and Institutional Sales contributed 27.6 per cent to the domestic revenues in FY25, expanding by 140 basis points over the previous year. "Growth in these channels outpaced overall domestic growth, clocking 13 per cent YoY growth," it said. Commenting on the result, Vice Chairman and Managing Director Harsha V Agarwal said, core domestic business continued to demonstrate strong momentum in Q4FY25, supported by healthy volume growth of 7 per cent. "Our input costs broadly remain under control and do not pose any major challenge in the near future. Going forward, we're focused on strengthening our core brands and unlocking new growth through brand extensions, premium offerings, and sharper channel strategies," he said. For the strategic subsidiaries, Emami is scaling marketplace and quick commerce presence, while driving cost efficiencies as well as launch new products in the next 3-6 months to tap into evolving consumer trends. "We expect a gradual pickup in consumption, supported by easing inflation, recent income tax benefits, higher government capex, and a more accommodative monetary policy, including potential rate cuts," he said. On the outlook, Emami said it remains confident of navigating short-term macro uncertainties through portfolio premiumisation, innovation acceleration, enhanced channel productivity, and strategic international expansion. The board of Emami also approved payment of a special (interim) dividend of Rs 2 per equity share of face value of Re 1 each for 2024-25, while celebrating 50 years of the company. Shares of Emami Ltd ended at Rs 637 apiece, up 1.07 per cent on the BSE.
