Share price of RVNL, Patel Engineering jump over 5% on signing MoU for power infrastructure projects

RVNL said the main objectives of the MoU are to cooperate and create an enabling framework for achieving synergies in the areas concerning hydro and other infrastructure projects.

The company recently emerged as the lowest bidder (L1) from Southern Railway for a project with an order size of over ₹111.38 crore. RVNL said the order has to be executed within 18 months.

Earlier this month, RVNL said it has signed an MoU with Dhaya Maju Infrastructure (Asia) Sdn Berhad (DMIA). The company said in an exchange filing that the primary objective of the MoU is to outline the terms and conditions under which RVNL and DMIA may collaborate to work jointly to participate into the railway infrastructure and services projects in the ASEAN market and other markets.

The firm said there will be special focus on establishing a manufacturing base in Malaysia for railway coaches and other railway products for catering to the growing need of ASEAN countries.

RVNL also won multiple orders in the month of July. The company notified that it had emerged as the lowest bidder (L1) for the development of distribution infrastructure in central zone of Himachal Pradesh under the revamped reforms-based and results-linked, distribution sector scheme.

The firm also received a letter of acceptance from South Eastern Railway for the design, supply, erection, testing and commissioning of 132 kilovolt (KV) traction substation, sectioning post (SPs), and sub-sectioning post (SSPs) on the Rajkhaswan-Nayagarh-Bolani section of Chakradharpur division of South Eastern Railway.

Meanwhile, during the first quarter of fiscal year 2025, revenue from operations declined 27% year-on-year (YoY) to ₹4,073.80 crore. Total revenue fell 26% YoY to ₹4,336.75 crore. Net profit fell 35% YoY to ₹224 crore.

Shares of RVNL have gained by over 228% since the beginning of the year. The stock has risen nearly 365% in the last one year.