RVNL emerges as lowest bidder for project of Rs 133 cr; shares up over 2%

RVNL shares surge: Rail Vikas Nigam Limited (RVNL) shares surged as much as 2.40 per cent to hit an intraday high of Rs 421 per share on Wednesday. 

The uptick in stock price came after RVNL announced that it has emerged as lowest bidder (L-1) for a contract worth Rs 133 crore from Central Railway.

In an exchange filing, RVNL 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 Wardha-Ballarshah Section in Nagpur division of Central Railway to meet 3000 MT loading target.” 

Under the terms of order, RVNL has been tasked with OHE modification work for upgradation of existing 1 x 25 kV Electric Traction System to 2 x 25 kV AT Feeding System in Wardha-Ballarshah section in Nagpur division of Central Railway to meet 3000 MT loading target.

The project, valued at Rs 132,59,20,130.37 crore, is expected to be completed within 24 months.

New Delhi-based Rail Vikas Nigam Limited specialises 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  

Rail Vikas Nigam’s profit zoomed 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 climbed 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, came in at 6.8 per cent in Q4FY24. 

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

The market capitalisation of RVNL is Rs 87,404.04 crore, according to Bombay Stock Exchange (BSE). 

At 9:20 AM, RVNL shares were trading 1.96 per cent higher at Rs 419.15 per share. By comparison, BSE Sensex was trading at record levels, up 0.48 per cent at 79,820.04 levels.