RVNL shares soar 7% on major order win, solid Q4 results. Details here

Shares of Rail Vikas Nigam Ltd (RVNL), the construction arm of the Ministry of Railways, soared by up to 7% in the first hour of the trading session on Tuesday. This came in the backdrop of the company posting solid March 2024 quarter results last week, and announcing a major ₹148-crore order win on Monday.

The stock opened in the green, continuing the momentum it showed during the special trading session on Saturday, when the shares had climbed by 4% on account of the strong Q4 results posted a day earlier.

In the trading today, the shares peaked to a high of ₹321.2 apiece on the NSE, up 7% as against the last closing price, shortly after the opening bell. By 9:49 am, the shares pared some of the gains to trade at ₹319.9, up 6.7%.

On the BSE, the climb was sharper as RVNL was trading at ₹322.35 apiece, up 7.58% as against the last closing price.

Major order win

On May 20, when the stock market was closed on account of Lok Sabha elections in Mumbai, RVNL announced that it has bagged an order worth ₹148 crore from South Eastern Railway.

The order has been awarded for the “design, supply, erection, testing and commissioning for upgradation of electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Kharagpur (Excl.)- Bhadrak (Excl.) section of Kharagpur division of South Eastern Railway to meet 3000 MT loading target,” it said in a regulatory filing.

Strong Q4 results

Following the conclusion of market hours on Friday, RVNL released its March quarter results. The central PSU reported a consolidated net profit of ₹478.4 crore, up 33% from ₹358.5 crore in the year-ago period.

Revenue from operations for the quarter under review stood at ₹6,714 crore, compared to ₹5,719.8 crore in Q4FY23, reflecting a 17.4% growth.

For the entire fiscal year ended March 31, 2024, the company's revenue grew 7.9% to ₹21,889.2 crore, while the net profit rose 17.3% to ₹1,574.4 crore.

RVNL's earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 21.8% to ₹456.4 crore, while the EBITDA margin stood at 6.8%.

The PSU's board recommended a final dividend of ₹2.11 per share on the paid-up equity share capital for FY24, subject to approval from the shareholders.

Notably, RVNL shares have rallied by over 75% in 2024 so far, and the surge has been sharper at around 176% in the last one year.