Rail Vikas Nigam Limited (RVNL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Rail Vikas Nigam Limited Earnings Conference Call hosted by Antique Stockbroking. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Periwal from Antique Stockbroking. Thank you, and over to you, Mr. Periwal.

Yes. Thanks, Siddhant. Good afternoon, everyone, and welcome you all for the Rail Vikas Nigam Limited First Quarter FY '25 Earnings Conference Call. We have with us from the management team, Rajesh Prasad Ji, Director, Operations; Sanjeeb Kumar Ji, who is Director Finance and CFO. So I mean, everyone -- so results are already in public domain. So we'll begin with the interactive Q&A session. Thank you, and over to you, Siddhant.

We will now begin question and answer session. [Operator Instructions] The first question is from the line of Atul from ULJK.

Thank you for the opportunity. [indiscernible]

Sorry to interrupt Mr. Atul, your voice is not audible.

Am I audible?

Yes, very much audible. You can go ahead.

So I wanted to understand like we have again shown a degrowth in revenue on Y-o-Y and Q-on-Q basis. Our profit has also come down. So any particular reason, sir, we would like to guide us for such a -- the number for this quarter are not good. So anything you'd like to guide us on that part?

So first of all, let me start with the order book of this particular company. So as on June 30, since we are talking about Q1 as of June 30, 2024, we had an order book of INR 83,000 crores plus, to be precise enough INR 83,221 crores. We are talking of the project execution, the top line of INR 22,000 crores. So roughly, we are having the orders for the next 4 years. So we are very comfortable. And regarding the execution part, see, there are certain reasons because of which there was a decline in the top line as well as in the bottom line. I will take some time, you please bear with me. I will take some of the examples, the project specific. Let us talk about the first overseas project. We had awarded all the subcontracts. We had mobilized all the resources and the manpower. In fact, today also about 600 manpower is available at work site. But because of the geopolitical situation in Maldives, the project has been slowed down, and it has been slowed down like anything. We had a plan of turnover of around INR 300 crores during the first quarter, and we could not do even 10% of that. So this was a setback, and this would have resulted into the profit also. So this is one example. Then let me talk about the metro project. So metro projects, the bidding project, let me start with the Indore Metro. We have executed the work. We have got the variations, new items and some claims costing more than INR 250 crores, which was -- which is still pending with the MP Metro authorities. They have approved INR 38 crores. They have released INR 21 crores. So what I want to tell you is that this INR 250 crores, the work has been done, but it has not been reflected in the top line as well as in the bottom line. And if you see the metro projects, this is Indore Metro Projects through the bidding. There are some other metro projects. And Atul Ji, you must be aware that the first quarter, all the investors who are present, everybody was focused towards the election. See, this quarter was full of the basically news items related to the elections. It has also impacted the execution. There are other PSUs and the other companies, they have also shown decline. The reason is that the labor, et cetera, they have gone back to their places. Once they go back to their places, they come back only after 1 month. So this has impacted the vehicles, et cetera, they have been taken by the election commission and everything is on the election board and focus gets shifted. And I will cite example of Kolkata Metro. There, we are executing the projects on nomination basis. See, the permission, et cetera, because of the election and otherwise, the permissions were not granted. And we had a plan of expenditure of INR 800 crores plus. In fact, last quarter, last year's Q1, we had done a turnover of INR 838 crores. And this Q1, we had done INR 291 crores. There was a decline of 65.29%. The clearances, there were 5 major clearances. We have now received 3 major clearances. One major clearance we are likely to get in next 15, 20 days. We are now having the permission for the shaft, Victoria Station, Park Street stations, and we will try to make it up. See money is available. Everything is available. Contractor is available, vendors are available, manpower is available. But because of this, the non-granting of the traffic permission for the various metro projects because of the election, this affected. We are working in 7 cities. The metros, we are executing in 7 cities and it had an impact. It had an impact. Then you will have to appreciate one more thing that the special purpose vehicles. Most of the special vehicles, purpose vehicles have been commissioned and the execution of the projects have gone down from INR 173 crores to INR 60 crores because the scope has got reduced. Then because of the election, the land acquisition got slowed down. You must be aware because of the basically modern conduct of rules, the disbursement and the land acquisition got delayed in the first quarter. This affects in many ways. First, we do not get the site. The project do not move forward. And of course, then it gets affected ultimately in the top line and the bottom line. So the land acquisition got delayed. I can cite a few projects where because of the land acquisition, the project did not move forward during the first quarter. So roughly, I can tell you that the Q1, there was a difference of around INR 1,400 crores to INR 1,500 crores. And every quarter, Q1 is always a weak number, and it keeps on basically increasing in the subsequent quarters. This will again happen in the next 3 quarters. And again, I'm telling you this was because of the election impact, because of the reasons, geopolitical reasons I had stated. And some of the reasons were beyond our control. But we are aware that, yes, someday, it is going to be resolved. And again, it will come on the track. So fund is available. The equipments are available. The manpower is available. But because of the reasons beyond our control, we could not execute it. I have given you some of the examples. Hope you appreciate this that why the top line and the bottom line has gone down. Here, I would like to point out one more thing. Now if you see the number of tenders which were coming out in the Q1, the number of bids, which was basically we have participated, it was only 57 numbers, because the tenders were not coming and because of the election, it was getting postponed. So everything got slowed down during this quarter. And I'm 100% sure that in time to come, we are going to have -- see, you'll have to see the long-term perspective. We have already getting transition from Azadi Ka Amrit Mahotsav to Amrit Saal. And by 2047, there is going to be an investment of INR 25 lakh crores in only railways infrastructure. And RVNL is going to play a big role. And only 2 days back, there was a news in the cabinet, the cabinet had approved 8 railway projects costing around INR 25,000 crores for a length of 800 kilometers. So things are coming. And once the projects are there, we have got the expertise, we have got the proven track record. And I'm 100% sure that in time to come, we are going to make it up.

Thank you, sir. Thank you for the elaborated answer sir. Apart from Maldives, any other regions which we are facing geopolitical tension, like, for example, Bangladesh, we have quite an exposure in Bangladesh.

So let me tell you about the Bangladesh. We had a plan of participating in tenders worth INR 2,500 crores. These were LOC projects and the government grant projects. But because of the geopolitical reasons, the tenders may not be coming up in next few months' time. But whenever it comes, we will definitely participate. And it is a temporary problem. And that would have not reflected in our top line and bottom line for this particular financial year.

Right, sir. Sir, last question is on order book. Could you please give us a bifurcation of order book like how much it is contributing towards the new line, doubling of lines and other segments of our business?

See I do not have the breakup, but I can tell you the total order book, I said INR 83,221 crores to be precise. In this, the new line is major one. Double line is around INR 7,500 crores. Gauge conversion is almost over, it is around INR 500 crores. And from the bidding, we have about INR 30,000 crores plus.

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

So sir first on the Vande Bharat trainset. So just wanted to understand what is the current status, what is the order book?

See the Vande Bharat trainsets, you must be aware that the cost of the project is INR 35,000 crores. And there were some developments which had occurred in the Q1. In May '24 Ministry of Railways issued the directions in change of the scope of the work. So, the scope was basically number of trainsets from 120 to 80. Earlier we had planned with 16 coaches. Now they have asked to go with 24 coaches, and then all trainsets to be made 24 coaches, and introduction of new coach types like pantry car, sub pantry and alternate car, then luggage compartment. So there has been some change in scope by Ministry of Railways. But as far as the number of coaches are concerned, it is the same. Now this particular project, I'll tell you the status of the basically manufacturing activities. So, mock up is to be approved by ICF, then interior design and layout will be [indiscernible]. Manufacturing likely to start Latur from November '24. And the manufacturing plant, the Latur factory, which was constructed by RVNL has been handed over to Kinet Rail Solutions on 28th June 2024 by Central Railways. So the on factory, which was constructed by RVNL on behalf of Ministry of Railway that is Central Railway, it has been handed over to Kinet Rail Solutions. And the prototype, the first prototype, we are trying to basically complete by September '25, within 24 months after the date of the agreement. Second prototype, November 2025, that is 2 months after the first prototype. And for the mock up, we have given the contract to M/s Kineco, Goa. And the final inspection is scheduled this week only, most probably 14th or 16th August. So hope I have been able to -- and the annual production plan is that in first year, we will be manufacturing 12 trainset, second year 18 trainset, third year onwards 25 trainset, as we have done an equity infusion of INR 205 crores in this particular project.

Sure. And sir, the order value for us is closer to INR 8,000-odd crores? Right.

One more thing which I forget to mention is that we -- this particular project has a comprehensive maintenance component for 35 years. For that, 3 depots, is at Jodhpur, the other is Delhi, Bijwasan, and then third in Bangalore, that is the Thanisandra. So, they are required to be upgraded. Layouts, et cetera, have been chosen, and the work is going to start very shortly. Construction agencies, et cetera, by the railway and by the SPV, we are on the job. And we are 100% sure that when the manufacturing is done by the time all these activities are over for undertaking the comprehensive maintenance.

Sure. And sir, just to clarify our share of order is closer to INR 8,000 odd crores, right?

I have earlier clarified that the contract was awarded to the consortium of JFC MWM. JFC MWM JWM, having a share of 70%, RVNL is having a share of 25%, and locomotive electronic system is having a share of 5%. And we have incorporated an SPV. The name of the SPV is Kenit Railway Solutions Limited. It was earlier 100% subsidiary of RVNL. Subsequently, there was a share purchase agreement. And now in that particular company, RVNL is having a share of 25%.

25%. Got it. Got it. Sir, my second question is on the investments which we have done. So we have a couple of subsidiaries for the Kutch Railway and for the railways to connectivity to the ports. So, till date, what are the investments we have done and how much more needs to be invested?

Okay. So there have been some developments in this basically SPVs. So you allow me to speak because there are some positive developments and there are some other kind of developments. So let me start with the positive development. See, there was a very big issue in connection with the GST. So, Railway Board, Ministry of Railway in September 2023 advised, and that from FY '23, '24 onwards, IR would transfer a portion revenue to SPVs inclusive of GST. This was slightly affected, not slightly it was affecting all the SPVs. Then in November '23, the Finance Directorate of Railway Board, the account directorate directed to SPVs to raise invoices for October '23 onwards on user fee and a portion revenue as per the guidelines that payment can be arranged accordingly and they asked us to raise invoices. The total repercussion of the GST in the SPVs subsidiary company, Krishna Patnam, Bharuch Dahej, Haridaspur, Angul Sukinda were around INR 1,500 crores in 1 year, more than INR 1,500 crores. And RVNL is having a share of varying from 30% to 50%. So the repercussion would have been more than INR 650 crores to INR 700 crores. Now what has happened is that all the SPVs, RVNL piloted this and we made the joint representation to Ministry of Railways. Ministry of Railways, again, they wrote to the GST Council. And I'm very happy to inform all the investors that during the 53rd GST Council, they exempted GST on the transactions between SPVs and Ministry of Railways. It was a very big achievement on behalf of RVNL and for all the SPVs because it had a repercussion of INR 1,500 crores in these 5 SPVs and we jointly represented and the GST Council also agreed that they exempted the transition between the SPVs and the Ministry of Railways. So this is one positive development. The second development, which I just wanted to tell you is regarding the Krishna Patnam Rail Company Limited, there was an arbitration case pending before the honorable tribunal. The tribunal basically comprised of the Justice Sudarshan Reddy, Justice Ravindran, and Mr. Rakesh Chopra, hen was Ex-secretary to Government of India Ministry of Railways. So basically, there were 4 claims which was filed by KRCL, Krishna Patnam Rail Company Limited, where we have got a share of 49.74%. So the terminal cost, we had a claim of INR 475 crores and the tribunal had given the award of INR 337.57 crores. They had given -- they have -- basically the claim for the terminal cost November 15, 2008 to September 3, 2012, they had rejected as bard by the limitations. Then the interest part, they have given the interest of INR 246.65 crores and we have demanded for 18% that we had asked from January 1, 2010. They have given from June 15, 2018. So what I want to tell you is that these are the awards which have been given by the Honorable Tribunal. They have not considered the award of the apportionment of the siding. And we feel that we should have bought it because Ministry of Railway had agreed from 2017 onwards and 2017 from prior to November 2017, they should have also considered it. So it is kind of not very good and excellent, but good award of INR 584 crores. Further course of action by Ministry of Railway or KRCL will be intimated to the stock exchange or the investors in due course of time, but we have got a relief of INR 584 crores. See the SPVs, we have got 5 number of SPVs, Kutch Rail Company Limited, Krishna Patnam Rail Company Limited, Bharuch Dahej, and then Haridaspur and Angul Sukinda. So all have been commissioned. Now it is time to get the fruit. The execution part is more or less over, but it is now the time to get the fruits out of these SPVs in time to come. And subsidiary, we have got the 100% subsidiary that is the HSRC Infra Services. Then we have got a road project, Masakani Paradeep Road Vikas Limited, RVNL Infra South Africa, RVNL Infra Middle East, Oman, RVNL Middle East Contracting LLC Dubai, sorry, Rail Vikas Nigam Limited LLC, Uzbekistan.

Sir, my question is, I mean, I understand we'll be reaping the benefits in...

21 number of SPVs, from JVs, from subsidiaries, from associates.

Got it. Got it. Sir, I just wanted to understand how much amount we have invested till date in the SPVs or subsidiaries?

How much amount we have invested?

In the form of equity, equity investments which we have done?

The railway SPVs, see the Kutch Rail, Bharuch Dahej, Krishna Patnam, Haridaspur, Angul Sukinda we have invested around INR 1,520 crores.

And anything more to be invested? Or it's done.

No, more because more or less it is completed. The Angul Sukinda, there is a proposal of making a Tata connectivity, and that is being funded by a different financial model, and the cost is borne by Tata. So that particular project, yes, will be executed in next 2 years' time, but it will not be loaded on RVNL and there is no equity infusion, further equity infusion to be made in Angul Sukinda Railway line.

Got It. So, sir, just for clarification, say in total, we have invested in the railway SPVs closer to INR 1,520 crores. And for Vande Bharat, our share is closer to INR 205 crore. So, totally, we have invested closer to INR 1700 odd crores plus, is my understanding correct?

We have 21 number of SPVs. We do not have that kind of breakup. But yes, we have got 21 number of SPVs from the JVs, from subsidiaries and that breakup is not immediately available. But I can tell you what is the kind of share which we are having in the various SPVs or JV or subsidiaries and associates.

So I'll take it offline. I'll give a call and I'll take it offline. And sir, lastly, in terms of cash and bank, what is our share of cash and bank, the cash balances which we have?

We have around INR 2,000 crores in the bank, which we use as a working capital.

The next question is from the line of Himanshu from NVS Brokerage.

My question is, sir, very simple. At the outset, I think last year, you had a wonderful year, and you performed exceedingly well. Now looking to this order book, which you described of INR 80,000 crores -- INR 83,000 crores plus and the difficulties in terms of, I would say, that only execution because of external factors. So do we assume that in the current year, you'll be able to make up for the loss ground for the Q1. And overall, we will have something like INR 25,000 crores plus kind of a top line and matching profitability?

In the beginning of the financial year, in this very forum, we have the RVNL management has said that we will achieve INR 22,000 crores plus. And we are still hopeful and we should be able to do it INR 22,000 crores. The plenty of works are there. As I said, the execution was a problem in the Q1. And Himanshu Ji, you also must be very busy in the election quarter, watching all the time, the election, et cetera. It has impacted -- all the investors must be very -- we were also very busy in that.

Absolutely. You are right. You are right, sir. Definitely. Right? So then I think the amount of work which needs to be done remains in the railway sector should see your order book well further during the course of the year?

See, in first quarter, I had tried to explain that, see, we were earlier executing only the railway infrastructure projects. And the first contract we got in October 2021. So it is not even 3 years, but we have transitioned from the role of contract manager to contractor. And for your information, till date, we have participated in 328 bids costing around INR 1.70 lakh crores. 328 bids, we have participated in 176 in civil engineering, 79 in electrical, 71 in S&T, 2 in mechanical. And in FY '24, '25, because of maybe the election quarter, the number of bids got slowed down. So only 57 tenders were there where we could participate. And they kept on basically extending the time of opening, time of date of opening. And now things should be in place. See, as I said in the beginning that we are in transition from Azadi ka Amrit Mahotsav to Amrit Saal. And there is going to be an investment of INR 25 lakh crores in only railway sector. The present model share in the country is you know, how much is there, it is only 26%. The Government of India's plan is that the logistic cost has to come down from 16% to 8%. There has to be a thrust on the railway infrastructure. Only 2 days back, there were 8 number of projects which got sanctioned costing around INR 25,000 crores for new line covering a length of around 800 kilometers. What I want to tell you is that there will not be a problem in the orders, execution could be a problem, but we have got the proven track record. We have executed in the past in the past and we are fully aware that the technical problems are resolved technically and we have done in the past. We will do it in future. The Maldives project was a marine project. We -- for the first time, we were executing the overseas project and that too in marine sector. You will be surprised to know that in 4 months, we could reclaim 22.5 hectares of land in that particular country. And everybody got surprised that how come RVNL has done this. For the first time, we entered into the market through Indore Metro and probably that became the fastest metro in the country. So don't worry about this. We are technically very, very confident and we are aware about our responsibilities. We are working on it. We have got a very deliberate review system. And we keep on talking, discussing and the problems are resolved technically. Technical problems are getting resolved technically.

Sir, congratulations very much, and I'm really excited by the amount of confidence which you have shown. Once again, congratulations and best wishes for the new year. Thank you very much.

The next question is from the line of [ Sandeep Sisodia ] from Shivam Denmark Private Limited.

When RVNL seems to be doing a great job when it comes to execution. And being in the public space, I am from Kolkata, and I see RVNL executing the metro project almost at every crossing and corner. Now coming to the question, sir, is basically the queries relating to top line and bottom line have been addressed by you in the previous question. There is a little bit of concern with respect to our JVs and SPVs. The contribution of these JVs and SPVs to our bottom line has either stagnated or shown a sharp decline. Would this be basically because of the GST issue? And if that is what it is, can we hope to make it up in the coming quarters, since the GST issue has been resolved?

Let me explain Sandeep, [Foreign Language], you must be aware this project, Metro project, we are doing it. And Q1 numbers for Kolkata Metro got a decline from INR 838 crores to INR 291 crores. There was a difference of roughly INR 450 crores in only Kolkata Metro, and it was only because of the traffic clearances, the approvals because the contractors are there, the site is available. Only thing is that a permission has to be given. For one small permission, it takes a few months, years. But there underground metro construction, which was not taking place. Now we have got the approval. Now you must be aware, you must be seeing the newspaper that we have already started doing construction in Park Street Metro station, Victoria Metro Station, then the shaft location near St. Thomas. So things are now going forward. Now coming to this a few other projects which we have taken in the building in Kolkata area. We have taken a project of Sit Rampur bypass, where we are constructing the rail over rail bridge and the crossing of yards without interfering. That is one of the very challenging projects. Then NHAI project that is the Kona Expressway. There were some disputes between NHAI. Now all have been resolved. We are on the ground. We are working. Now utility shifting, et cetera, everything is in place. Now your question was that the top line and the bottom line. I had explained that in the beginning of the financial year, we had said that the top line will be around INR 22,000 crores. We would like to maintain kind of bottom line.

Sir, that has already been addressed by you.

Okay, then the other question which you have said about the JV.

The other one was the contribution of our SPVs and JVs to our bottom line has either stagnated or shown a decline. Is that because of the GST issue? And if that is it -- and the GST issue has been resolved, can we hoped to have.

Regarding the railway SPVs, the GST issue is totally resolved. And as I said, this could have resulted into INR 1,500 crores loss for all the railway infrastructure SPVs where RVNL could have a share of around INR 600-plus crores, which during the 53rd GST Council meeting, they have given the clearance. So, that has been very well taken care of. Regarding the other SPVs and the JVs where we are working.

Sir, I will rephrase that question. We had a bottom-line contribution of approximately INR 105 crores.

See, you will have to appreciate one more thing, that the financial basically billing cycle. See what happens that suppose we are executing an electrical work. Now you have purchased the electric cables. And until unless you execute it, you will not get the turnover. You will not get the money from the client. SPVs have stopped the billings. Because of the court cases and GST being inclusive, the SPVs have not billed to the railways. So, while that is progressing, some payments are yet to be realized. Therefore, because of the GST issue, things are improved. And there were some local variations because of Krishna Patnam iron ore for export has declined and so on. But the GST issue itself being -- that will add to quite a bit.

Sir, do we hope to have a comparative bottom line from the SPVs in the current financial year as last year?

Yes. I mean last year, we had -- the SPVs have contributed significantly. And I think the same level will remain in the coming year.

Done. That's great relief, sir. Sir, the other question is that we have participated and we have also been successful in other projects overseas. If I remember, it was either Uzbekistan or Kazakhstan, which was $2.8 billion and also with Jackson Green with regard to green energy projects. Have we made any progress there? And we hope that it will translate to work on the ground. Apart from Maldives, any other project that is likely to take off soon, overseas project?

so 2 Jackson Green projects, one in Uzbekistan and another in Saudi Arabia, they are -- in fact, the Uzbekistan project is underway significantly and again on Jackson Green project. And the other one is also in the process of going ahead, orders are being placed. And these have very short completion periods of around 11 months. Because of that, the return will -- most of it will come by the end of this year. I would like to tell you that, see, we had started bidding in only 2021 later part and the first order we got in October 2021. So we are not even 3 years old in the market. But -- and earlier, we were doing all the typical railway infrastructure and the Ministry of Railways. Now I'll tell you where exactly we have got the presence. We have got branch offices in Maldives and Abu Dhabi. We have got Rail Vikas Nigam Limited LLC, wholly-owned subsidiary in Uzbekistan. This was incorporated on 1st August 2024. Then we have got RVNL Middle East Contracting LLC, wholly-owned subsidiary of RVNL in Dubai incorporated on June 2, 2024. Then we have got RVNL Infra Middle East, wholly-owned subsidiary of RVNL in Sultanate of Oman, incorporated on April, 4, 2024. We have got the RVNL Infra South Africa. Again, it is wholly-owned subsidiary of RVNL Incorporated sometime in the beginning of 2024. Then following offices are also under process, for example, in the Kingdom of Saudi Arabia and then we had earlier made a subsidiary made basically SPV in the Kyrgyzindustry. So you try to appreciate this. The company which was earlier executing only typical railway infrastructure has spread at too many locations. And we are trying to diversify. We are getting -- we are opening the various verticals. We were not in the business of manufacturing. Now we have entered into the business of manufacturing. We have entered into the transmission line. We have entered into the municipality, the fixed value contract. So what are your RDSS. RDSS is basically revamped reform-based and results-linked distribution sector scheme. So what I am saying is that we are diversifying. We had earlier received orders in Himachal Pradesh State Electricity Board. So what I want to tell you is that we are looking for the opportunities wherever we can participate, wherever we can spread our wings and we can get the works and execute and maintain the bottom line.

Sir, we have been closely following the horizontal growth of RVNL in the last 2, 3 years. And like you said, in just 3 years' time, we've probably now INR 45,000 crores from the market, our order book. And it's very heartening to see the horizontal growth of RVNL probably is much more than the vertical growth. And this horizontal growth, it is bound to contribute to top line, bottom line sometime going into the future. So that is much appreciated, sir. And also that these short-term orders will contribute to the financials within the current financial year. Sir, just one last question that we hear a lot about this the bullet train project. And I know that the National High Speed Rail Corporation of India is a subsidiary of RVNL.

First complete the question, then I'll tell you.

So sir, what is the financial contribution that RVNL can expect from the execution of the bullet train project, the current fund as well as the other 2 or 3 projects which are planned going into the future?

See, the National High Speed Rail Corporation Limited is not the subsidiary of RVNL. RVNL has a subsidiary named HSRCL. That is the High-Speed Rail Company Limited. And this HSRC was involved in doing the pre-feasibility and feasibility studies, and we had undertaken around 10,000 kilometers of feasibility studies, pre-feasibility studies, that is the 4 metro cities, the 4 sides and the 2 diagonals. And these reports were submitted around 7, 8 years back, 8, 9 years back. And then when the execution part came up, then Government of India decided that we will have a separate company. And accordingly, they formed a company named NHSRCL. RVNL has got no linkage with NHSRCL, HSRCL, we have got a subsidiary. And since you are talking about the bullet train, by 2047, there is a likelihood of having 10,000 kilometers of high-speed railway network in the country. And when these projects come up, or which the pre-feasibility studies was done by RVNL about 7, 8 years back, RVNL will definitely play a significant role in execution and implementation.

That's very heartening to know, sir, since RVNL has now gone into production, like you said, with the rolling stock as we call it, that rolling stock is the next big -- as far as railways is concerned, that's the next big opportunity because it will happen continuously. Are we restricting ourselves to just Vande Bharat or are we open to orders from overseas countries since we are now going to have experience...

We had earlier participated in a bid in Mauritius Metro, the LRT. And there also, we have tied up with some foreign companies for supply of the basically rakes. So we are in constant touch with the various companies. We are looking for the opportunities. And whenever we get the opportunities, we will look into this, we will enter into that. There is absolutely no problem. We are highly flexible. We are focused and flexible. And only because of this virtue, this company is totally different, and it makes it further different with respect to the other companies, other PSUs.

The next question is from the line of Raj Kumar Dixit, who is an individual investor.

I have a question on falling in and bottom line basically, so margin particularly, the margin, net profit margin what I have seen is 4.5% something. Is there any...

[Foreign Language] But you were talking about the margins. So let me explain that earlier, we were having the fixed margins when we were executing the railway infrastructure projects. We are still having railway infrastructure projects where the margins will be as per the revenue stream. But as far as the projects which we are taking from the market, the margins would vary. In the previous quarter's investors meet, I had clarified that the Maldives project and the Indore Metro project, the first overseas project and the first Indian project, which we had secured through the bidding, they had resulted into the margins, which were more than the margins which we used to get from the nomination. So -- and I can tell you one more thing that there will be some projects which will be more challenging. The margins may not be there. But there would be some lucrative projects where the margins will be slightly better. So it will be a mix. Only thing is that we'll have to apply mind. We'll have to bid accordingly. We have to execute accordingly. Challenges are there, but we are working on this to maintain the bottom line.

Sir, so in that scenario, sir, the growth in bottom line looks would be a stagnant, or I don't see much growth in bottom line that way?

See, you please try to appreciate this. As I said, we have got order book of around INR 83,000 crores plus. So when you execute the project, the bottom line will also get basically reflected.

I think I'll add to this. There -- as mentioned by Rajesh Ji earlier, there are several works for which transmission and distribution works of the railways in Madhya Pradesh and Rajasthan, where we have procured material for the entire year's production, but we will be paid only on the basis of billing on execution, which will mean that in , especially that's around INR 4,000 crores of work. So that should help us in increasing our bottom line there as well. And thank you so much.

I would like to say on behalf of my -- because I'm a retail investor, and I want to say thanks to the whole RVNL team for giving such a wonderful return in the last 3 years. I'm invested in the last 3 years. I want to say thanks from all my friends and relatives and from my...

It's heartening to hear and you keep doing well, we keep doing well and taking you forward.

Actually, I want to take this opportunity to say thanks, that is the reason I joined. And I'm confident that you will do wonders sir.

Even today, we have come back from the...

Vishal Ji, can we conclude, it is already 45 minutes over?

Yes. We can conclude.

Thank you, Vishal.

Thank you, Vishal Ji.

Yes, Siddhant, we can continue here.

On behalf of Rail Vikas Nigam Limited, we thank you for joining the call. And you may now disconnect your lines.