RVNL share price up 8% on bagging Rs 729-cr order from HP State Electricity

Rail Vikas Nigam (RVNL) shares jumped 7.7 per cent in Wednesday's trade on BSE, logging an intraday high at Rs 351.55 per share. The northward movement in the stock came after the civil construction company received a letter of acceptance (LoA) from Himachal Pradesh State Electricity Board Limited (HPSEBL). 

 

Around 9:51 AM, RVNL share price was up 5.17 per cent at Rs 343 per share on BSE. In comparison, the BSE Sensex was up 0.76 per cent at 73,546.58. The market capitalisation of the company stood at Rs 71,516.19 crore. The 52-week high of the stock was at Rs 647 per share and the 52-week low was at Rs 213 per share. 

 

Under the contract, RVNL will develop and distribute infrastructure at central zone of Himachal Pradesh. The order is worth over Rs 729 crore and has to be completed within two years. 

 

"It is hereby informed that Rail Vikas Nigam Limited has received Letter of Acceptance from HPSEBL for “Development of Distribution Infrastructure at central zone of Himachal Pradesh under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme (Loss Reduction Work)," the filing read. 

 

In February, RVNL bagged Rs 554 crore order from  Rail Infrastructure Development Company (Karnataka). Under the contract, the company was supposed to construct nine stations i.e. Elevated (1 No.) and At-Grade (8 Nos.) BSRP Stations of Corridor-4A at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, Kaggadasapura. 

 

In Q3, RVNL posted a 13 per cent decline in consolidated net profit to Rs 311.58 crore as compared to a profit of Rs 358.57 crore a year ago. The company’s revenue, however, declined by 2.6 per cent year-on-year (Y-o-Y) to Rs 4,567.38 crore as compared to Rs 4,689.33 crore a year ago. 

 

The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda), during the quarter, stood at Rs 239 crore as compared to Rs 249 crore a year ago. Ebitda margin declined to 5.2 per cent from 5.3 per cent in Q3 FY24. 

 

In the past one year, RVNL shares have gained 37.3 per cent against Sensex's decline of 0.93 per cent.