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  5. RVNL shares jump 4% on winning ₹495 crore from NTPC

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RVNL shares jump 4% on winning ₹495 crore from NTPC

Upstox
By Upstox News Desk

2 min read | Updated on June 07, 2024, 11:17 IST

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SUMMARY

The rail PSU, which has bagged a spree of orders in recent period, had reported a 33% YoY growth in net profit to ₹478.4 crore in Q4FY24. In 2024 so far, RVNL's stock has more than doubled by growing at 104% year-to-date.

Stock list

RVNL
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For FY24, RVNL declared a final dividend of ₹2.11 per share

For FY24, RVNL declared a final dividend of ₹2.11 per share

Shares of Rail Vikas Nigam Ltd (RVNL) rallied by 4% on Friday, June 7, in the backdrop of the state-owned entity bagging a ₹495-crore order from the National Thermal Power Corporation (NTPC).

"...it is hereby informed that Rail Vikas Nigam Limited has received Letter of Award from National Thermal Power Corporation (NTPC) for 'Project Execution Agency (PEA) contract for execution of Balance Civil & HM works of Barrage Complex including part HRT package of Rammam Hydro Electric Project Stage-III (3x40 MW)," RVNL informed the exchanges post the market closing hours on Thursday.

The project is to be executed in a period of five-and-a-half years, it further noted.

Following the announcement, shares of the rail PSU opened 1.5% higher at ₹374 apiece on the NSE. In the first hour of trading, it peaked to a high of ₹382, which was 3.6% higher as against the previous day's close.

However, by 11 am, the stock pared some of the gains and was trading 2% higher at ₹376.2 apiece.

The ₹495-crore order win from NTPC comes two days after RVNL bagged an order worth ₹440 crore from South Central Railway.
RVNL, which is the construction arm of the Ministry of Railways, had last month bagged an array of major orders, including ₹148-crore contract from Nagpur Metro, ₹72.7 crore project from Northern Railway and a ₹239 crore order from Southern Railway.

Strong Q4 results

In the March 2024 quarter, RVNL reported a consolidated net profit of ₹478.4 crore, up 33% from ₹358.5 crore in the year-ago period.

Revenue from operations during the quarter came in at ₹6,714 crore, marking a jump of 17.4% from ₹5,719.8 crore in Q4FY23.

The board of the PSU declared a final dividend of ₹2.11 per share on the paid-up equity share capital for the financial year 2023-24. The payout will be subject to shareholders' approval.

Shares of RVNL have doubled in 2024 so far, with a year-to-date surge of 105%. In the last one year, the stock has grown by a massive 195%.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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