RVNL share price up 3% on emerging lowest bidder for project of Rs 295 cr

RVNL share price: Rail Vikas Nigam Limited (RVNL) shares soared up to 3.13 per cent to hit an intraday high of Rs 450.25 per share on Tuesday, November 12, 2024. 

 

RVNL share price rose after the company announced that it has emerged as the lowest bidder for a project of Rs 294.9 crore from South Central Railway.

 

RVNL, via an exchange filing said, “It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) from South Central Railway for “Engineering Procurement Construction (EPC) Contract of Doubling of Track between Navipet station (Excl) From Km 446.900 to Indalvai Station (Incl) Km 482.900 (33.70 km), {Excluding Nizamabad Yard from Km 458.825 to 461.125 (i.e.) 2.3 Km} including Electrification & Signalling works in of South-Central Railway in connection with Mudkhed-Medchal Doubling Project in the State of Telangana.”  

 

 

Under the terms of the order, RVNL has been awarded an Engineering, Procurement, and Construction (EPC) contract for doubling the track between Navipet Station (excluding) at Km 446.900 and Indalvai Station (including) at Km 482.900, covering a total distance of 33.70 km. This project excludes the Nizamabad Yard segment from Km 458.825 to 461.125 (a 2.3 km stretch) and includes electrification and signalling works as part of the South-Central Railway's Mudkhed–Medchal Doubling Project in the state of Telangana.

 

The total project cost is Rs 294,94,80,683.34, and it is scheduled for completion within 24 months, RVNL said in a statement.

 

RVNL Q2 results

 

RVNL’s profit plunged 27.2 per cent year-on-year (Y-o-Y) to Rs 287 crore in the September quarter of FY25 (Q2FY25), from Rs 394.3 crore in the September quarter of FY24 (Q2FY24). The company’s revenue, however, fell a little over 1 per cent annually to Rs 4,855 crore in Q2FY25, from Rs 4,914.3 crore in Q2FY24.

 

At the operating front, earnings before interest,tax, depreciation and amortisation (Ebitda), dropped 9 per cent Y-o-Y to Rs 271.5 crore in Q2FY25, from Rs 298.2 crore in Q2FY24. 

Consequently, Ebitda margin squeezed 40 basis points to 5.6 per cent in the September quarter of FY25, from 6 per cent in the September quarter of FY24. 

 

Last week, RVNL announced that it has secured a letter of acceptance (LoA) for an order worth over Rs 180 crore from East Central Railway. 

RVNL is a company based in New Delhi, specialising in the construction of rail infrastructure projects across the country. Set up 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.

 

The market capitalisation of RVNL is Rs 93,179.55 crore, according to BSE. The company falls under the BSE200 category.

 

At 9:22 AM, shares of RVNL were trading 2.46 per cent higher at Rs 447.30 per share. In comparison, BSE Sensex was trading 0.26 per cent higher at 79,799.98 levels.