RVNL shares up 4% on emerging as lowest bidder for project worth Rs 160 cr

RVNL shares surge: Shares of Rail Vikas Nigam Limited (RVNL) surged as much as 3.84 per cent to hit an intraday high of Rs 405 per share, on Tuesday. 

The uptick in share price came after the company announced that it has emerged as the lowest bidder (L-1) for a project from East Coast Railway worth Rs 160 crore. 

In an exchange filing, RVNL said, “It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from East Coast Railway for “provision of automatic block signalling system with dual MSDAC and alteration in existing El/Pl/RRI stations in the section of Jakhapura-Nergundi, Khurda Road-Bhusundpur & Bhusundpur-Golanthra over Khurda road division of East Coast Railway.”

According to the order details, RVNL will implement an automatic block signalling system with dual MSDAC and modify existing El/Pl/RRI stations in the Jakhapura-Nergundi, Khurda Road-Bhusundpur, and Bhusundpur-Golanthra sections of the Khurda road division on the East Coast Railway.

The company is expected to complete the project in 24 months. 

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  

The state-owned company's profit rose 33.2 per cent year-on-year (Y-o-Y) to Rs 478.6 crore for the fourth quarter that ended March 31, 2024 (Q4FY24), from Rs 359 crore in the same quarter a year ago (Q4FY23). 

RVNL’s revenue increased 17.4 per cent to Rs 6,714 crore, as opposed to Rs 5,719.8 crore in Q4FY23. The Ebitda margin, meanwhile, came in at  6.8 per cent in Q4FY24. 

The board also recommended a final dividend of Rs 2.11 per share for financial year 24.

The market capitalisation of RVNL is Rs 83,630.16 crore, according to Bombay Stock Exchange (BSE). The 52-week high of the stock is Rs 424.95 while its 52-week low is Rs 116.15.

At 11:06 AM, shares of RVNL were trading 2.54 per cent higher at Rs 399.90 per share. By comparison, BSE Sensex was trading 0.31 per cent higher at 77,233.24 levels.