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RVNL stock hits fresh 52-week high on securing order worth of Rs 192 cr

The uptick in share price came after the RVNL announced that it has emerged as the lowest bidder (L-1) for a project worth Rs 192 crore from South Eastern Railway

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SI Reporter New Delhi

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RVNL shares in focus: Rail Vikas Nigam Limited (RVNL) share price rose as much as 5.38 per cent to hit a fresh 52-week high of Rs 431.80 per share.

The uptick in share price came after the RVNL announced that it has emerged as the lowest bidder (L-1) for a project worth Rs 192 crore from South Eastern Railway.

In an exchange filing, RVNL said, “It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY for “Design, Supply, Erection, Testing & Commissioning of 132 KV Traction Substation, Sectioning post (SPs), and Sub sectioning post (SSPs) in 2x25KV System on Rajkhaswan- Nayagarh-Bolani section of Chakradharpur division of South Eastern Railway to meet 3000MT loading target on EPC mode.”

Under the contract terms, RVNL is tasked with the Design, Supply, Erection, Testing, and Commissioning of a 132 KV Traction Substation, Sectioning Posts (SPs), and Sub-sectioning Posts (SSPs) for a 2x25KV System on the Rajkhaswan-Nayagarh-Bolani section of the Chakradharpur division of the South Eastern Railway. This project aims to achieve a loading target of 3,000MT under the EPC mode. 

Meanwhile, the cost of work is Rs 191,53,74,279.51 crore.

Rail Vikas Nigam Limited is a company based in New Delhi, specialising in the construction of rail infrastructure projects across the country. Established in 2003, the company is actively involved in the development and implementation of various railway projects, including new lines, doubling, gauge conversion, railway electrification, workshops, metro projects, bridges, construction of cable-stayed bridges, and institution buildings. 

Additionally, it offers financial resource mobilisation services to support its projects. Rail Vikas Nigam Limited caters to clients such as Indian Railways, central and state government ministries, departments, and public sector undertakings.

Financial performance  

RVNLs profit jumped 33.2 per cent year-on-year (Y-o-Y) to Rs 478.6 crore in the March quarter of financial year 2024 (Q4FY24), from Rs 359 crore in the same quarter a year ago (Q4FY23). 

RVNL’s revenue soared over 17 per cent to Rs 6,714 crore, as against Rs 5,719.8 crore in Q4FY23. The earnings before interest, taxes, depreciation and amortisation (Ebitda) margin, meanwhile, stood at  6.8 per cent in Q4FY24. 

The board also recommended a final dividend of Rs 2.11 per share for financial year 2024 (FY24).

The market capitalisation of RVNL is Rs 88,060.82 crore, according to National Stock Exchange (NSE). 

At 9:42 AM, RVNL shares were trading 1.68 per cent higher at Rs 416.65 per share. By comparison, Nifty50 was trading 0.58 per cent lower at 23,363.85 levels.

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First Published: Jun 24 2024 | 9:51 AM IST

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