RVNL bags order worth Rs 156 cr from Southern Railway; shares surge 3%

RVNL shares rise: Rail Vikas Nigam Limited (RVNL) shares soared as much as 2.84 per cent to hit an intraday high of Rs 420.70 per share on Thursday.

The uptick in stock price came after RVNL announced that it has bagged a contract worth Rs 156.47 crore from Southern Railway.

In an exchange filing, RVNL said, “It is hereby informed that M/s KRDCL-RVNL JV has received Letter of Acceptance from Southern Railway for “Provision of Automatic Signalling on Ernakulam JN (ERS) - Vallattol Nagar (VTK) Section on B-Route of Thiruvananthapuram Division in Southern Railway.”

Under the terms of order, RVNL has been tasked with implementing Automatic Signalling on the B-Route of Thiruvananthapuram Division in Southern Railway, specifically on the Ernakulam JN (ERS) - Vallattol Nagar (VTK) Section. 

 

The project, valued at Rs 156,47,03,304.52 crore, is expected to be completed within 750 days.

New Delhi-based Rail Vikas Nigam Limited specialises 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.

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 86,298.98 crore, according to Bombay Stock Exchange (BSE). 

At 10:55 AM, RVNL shares were trading 1.19 per cent higher at Rs 413.90 per share. By comparison, BSE Sensex was trading flat at 78,657.35