Rail Vikas Nigam closes 2% higher after firm announces order win worth ₹439 crore

Rail Vikas Nigam (RVNL) said in an exchange filing that the joint venture between KRDCL and RVNL has emerged as the lowest bidder from southern railway for the redevelopment of Thiruvananthapuram Central railway station on engineering, procurement and construction (EPC) mode.

The project cost is estimated at around ₹439 crore and the execution period stands at 42 months. RVNL indicated its share in the joint venture with KRDCL is 49%. Shares of the company closed nearly 2% higher on Wednesday.

RVNL is a central public sector enterprise under the ministry of railways that has been given the twin objectives of raising extra-budgetary resources and implementation of projects relating to creation and augmentation of capacity of rail infrastructure on a fast track basis.

Recently, the company had won another order where it emerged as the lowest bidder for an engineering, procurement and construction (EPC) tender. The order pertained to proposed doubling of track between Ankai station and Karanjgaon stations including electrification and signaling works in connection with Aurangabad-Ankai doubling project in the Nanded division of South Central Railway. The project cost was estimated at ₹440 crore.

During the third quarter of fiscal year 2024, the company reported a 6.44% drop in its operating revenue at ₹4,689.33 crore. Total income fell 5.22% to ₹5,016.97 crore while net profit dropped 6.24% to ₹358.57 crore.

RVNL’s management had stated during the earnings call that the company is targeting a topline between ₹20,000 crore and ₹22,000 crore with an order book that will be three-four times of the turnover. The company is aiming at an orderbook of ₹75,000 crore with new orders worth ₹25,000 crore coming in every year from domestic and international markets.

Shares of RVNL have gained over 55% since the beginning of the year. The stock has risen over 222% in the last one year.