Synopsis:
Rail Vikas Nigam Ltd. won the lowest bid for constructing Bridge No. 50 (14×61 m) over the Gandak River between Paniyahwa and Valmikinagar, and the ₹165.55 crore project will be completed in 24 months.
The shares of a Railway company, specializing in implementing railway infrastructure projects, including the construction of new lines, track doubling, gauge conversion, and railway electrification, are in focus after being declared as the lower bidder for a project worth Rs 165 crore.
With a market capitalization of Rs. 68,962.04 crores on Tuesday, the shares of Rail Vikas Nigam Ltd jumped upto 0.98 percent, making a high of Rs. 333.30 per share compared to its previous closing price of Rs. 330.05 per share.
What Happened
Rail Vikas Nigam Ltd, engaged in implementing railway infrastructure projects, including the construction of new lines, track doubling, gauge conversion, and railway electrification, has been declared the lowest bidder (L1) by North Eastern Railway.
It is for the construction of the substructure of Bridge No. 50 (14×61 m) with a double D-type well foundation over the river Gandak, between Paniyahwa and Valmikinagar stations, as part of the doubling work on the Gorakhpur Cantt–Valmikinagar section. The project, awarded under Tender No. DYCE-CON-HQ-EPC-03-2025 is valued at Rs. 165.55 crore (including GST) and is to be completed within 24 months.
Financials & Others
The company’s revenue declined by 4.05 percent from Rs. 4,074 crore to Rs. 3,909 crore in Q1FY25-26. Meanwhile, Net profit decreased from Rs. 224 crore to Rs. 134 crore during the same period.
The company demonstrates strong financial performance, with a Return on Capital Employed (ROCE) of 14.7% and a Return on Equity (ROE) of 14.0%, indicating efficient use of both debt and equity in generating profits. Its debt-to-equity ratio of 0.57 reflects a moderate and manageable level of leverage.
Additionally, the company has maintained a healthy dividend payout of 29.8%, signaling consistent returns to shareholders. Over the last decade, its median sales growth has been 25.8%, highlighting robust and sustained revenue expansion.
Rail Vikas Nigam Ltd (RVNL) is a public sector undertaking under the Ministry of Railways that specializes in the development and implementation of railway infrastructure projects in India. Incorporated in 2003, it functions as the construction arm for the ministry and has been granted Navratna status, a high-level designation for public sector companies.
RVNL executes a wide range of projects, including new lines, doubling and electrification of tracks, metro rail projects, and major bridges, and is responsible for raising financial resources for these projects.
The organization manages the full lifecycle of railway projects, including new lines, track doubling, electrification, metro systems, and major bridges. It mobilizes extra-budgetary funds, can set up SPVs for specific projects, and hands over completed projects to zonal railways for operation and maintenance.
Written by Sridhar J
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