RVNL share price surge 3% on multiple order wins; up 52% in 3 months

The uptick in share price came after the state-owned railway company secured multiple orders on June 10, after market hours

RVNL shares soar: Shares of Rail Vikas Nigam Limited (RVNL) soared as much as 3.13 per cent to hit an intraday high of Rs 385.50 per share on Tuesday. 

The uptick in share price came after the state-owned railway company secured multiple orders on June 10, post market hours. 

In an exchange filing, RVNL said, “It is hereby informed that Siemens-RVNL consortium has received Letter of Acceptance (LoA) from Bangalore Metro Rail Corporation Ltd for engineering, supply, erection, testing and commissioning of 33 KV distribution, 750V DC third rail traction electrification including traction substations, auxiliary substations and SCADA system for Phase-2A & Phase 2 B.”

The project, valued at Rs 394.2 crore, is slated for completion within 130 weeks, with Siemens Ltd holding a 70 per cent share and RVNL owning the remaining 30 per cent.

In a separate development, RVNL emerged as the Lowest Bidder (L1) for a project worth Rs 138.45 crore from Central Railway. 

RVNL, via a separate filing said, “It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from Central Railway for “OHE modification work for Up-gradation of existing 1 x 25 kV Electric Traction System to 2 x 25 kV AT Feeding System in Amla-Nagpur Section in Nagpur division of Central Railway to meet 3000 MT loading target.” 

This order, meanwhile, is anticipated to be completed within 24 months.

Financial performance

State-run RVNL posted 33.2 per cent year-on-year (Y-o-Y) rise in net profit at Rs 478.6 crore  in the March quarter of financial year 2024 (Q4FY24), as opposed to Rs 359 crore in the same quarter a year ago (Q4FY23).

RVNL’s revenue from operations soared 17.4 per cent to Rs 6,714 crore, as against Rs 5,719.8 crore in the same quarter last year. 

At the operating front, earnings before interest, tax, depreciation, and amortisation (Ebitda) zoomed 21.8 per cent to Rs 456.4 crore in Q4FY24. Meanwhile, the Ebitda margin stood at 6.8 per cent in the Q4FY24, from 6.6 per cent in Q4FY23. 

The board has recommended a final dividend of Rs 2.11 per share for FY24.

The market capitalisation of RVNL is Rs 80,023.07 crore, according to Bombay Stock Exchange (BSE).

At 9:28 AM, shares of RVNL were trading 2.61 per cent higher at Rs 383.55 . By comparison, BSE Sensex was trading 0.06 per cent higher at 76,535.51 levels.