RVNL up 3% on Rs 739 crore-order win; to announce Q1FY25 results on Aug 8

RVNL shares soar: Shares of Rail Vikas Nigam Limited (RVNL) rose as much as 3.29 per cent to hit an intraday high of Rs 626.65 per share, on Tuesday. 

The rise in the stock price came after the company announced that it has secured an order from Himachal Pradesh State Electricity Board limited (HPSEBL).

RVNL, in its filing said, “It is hereby informed that Rail Vikas Nigam Limited emerges as the Lowest Bidder (L1) for “Development of Distribution Infrastructure at Central Zone of Himachal Pradesh under the Revamped Reforms-based and Results-linked, Distribution Sector Scheme [Loss Reduction Works] declared by HPSEBL.”

According to the order details, RVNL will be responsible for development of distribution infrastructure at the Central Zone of Himachal Pradesh under the revamped reforms-based and results-linked, distribution sector scheme.

The exact cost of the project is Rs 739,07,41,040 crore, and it is expected to be completed in 24 months. 

In a separate filing, the company said that the Board of Directors will meet on August 8 to consider, approve and take on record the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended 30th June, 2024.

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 market capitalisation of RVNL is Rs 1,28,583.19 crore, according to Bombay Stock Exchange (BSE). 

At 11:26 AM, shares of RVNL were trading 1.68 per cent higher at Rs 616.85 per share. By comparison, BSE Sensex was trading 0.38 per cent higher at 81,667.75 levels