RVNL shares rally nearly 3% on receiving contracts worth ₹386 crore

Shares of Rail Vikas Nigam Ltd (RVNL) gained nearly 3% on Tuesday after the company bagged new contracts worth ₹386.6 crore.

In an exchange filing on Monday, March 11, the state-run company said that it emerged as the lowest bidder for signalling and telecommunication work for the provision of automatic block signalling on the Kapri Sewagram section of the Nagpur Division of the Central Railway. The ₹47.36-crore project has to be tentatively completed in 12 months.

Further, the Railways Ministry public sector undertaking bagged another ₹339.23 crore contract emerging as the lowest bidder for the designing and construction work of Maharashtra Metro Rail Corporation Limited. The contract entails the construction of an elevated viaduct of 4.5 km between PCMC and NIGDI (Bhakti Shakti) on the North-South Corridor of the Pune Metro Rail Project- Reach1 -Extension.

The project is scheduled to be completed in 130 weeks.

Shares of the construction arm of the Indian Railways gained nearly 9% on Monday after getting new contracts worth around ₹2,000 crore.

The orders include ₹1,297-crore contracts from Himachal Pradesh State Electricity Board Ltd. RVNL will be working on the developing distribution infrastructure in the state.

The projects are part of the Revamped Reforms-based and Results-linked, Distribution Sector Scheme called Loss Reduction Works.

RVNL has also bagged ₹889-crore order for the development of distribution infrastructure at the South Zone and another ₹410 crore order for developing infrastructure for the North Zone.

The railway PSU also secured a ₹543 crore order from Madhya Pradesh Metro Rail Corporation. This entails the design and construction work of an elevated viaduct and five elevated metro rail stations at Bengali Chauraha, Shaheed Bagh, Khajrana Chauraha, Patrakar Colony and Palasia Chauraha.

RVNL has also received ₹251 crore order from Madhya Pradesh PoorvKshetra Vidyut Vitaran Company Ltd. The contract work includes commissioning of 11 KV line associated works such as 11 KV Line bifurcation, 11 KV line interconnection and other part of the revamped reforms-based and results-linked distribution sector.

Shares of RVNL closed 1.28% lower at ₹243.3 apiece on NSE.