Shares of this PSU company fell around 1 percent despite receiving an order from South Eastern Railway worth over Rs. 167 crores. The shares have delivered a multibagger return of 109 percent in one year to its shareholders.
With a market capitalization of Rs. 55,795 crores, the shares of Rail Vikas Nigam Ltd started Thursday’s trading session on a higher note at Rs. 271 compared to its previous close of Rs. 269.95. During the trading session, the shares hit a low of Rs. 265.50, losing around 1 percent and are currently trading at Rs. 268 apiece.
According to the exchange filing, the railway company received a Letter of Acceptance from South Eastern Railway for the design, supply, erection, testing and commissioning for the upgradation of Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Rajkharsawan NayagarhBolani section of Chakradharpur division of South Eastern Railway to meet 3,000 MT loading target. The project is worth over Rs. 167 crores.
Coming onto the company’s financial statements, the revenue decreased by 5 percent from Rs. 4,914 crores during the September quarter to Rs. 4,689 crores in the December quarter. On the other hand, the net profits declined by 9 percent from Rs. 394 crores to Rs. 359 crores during the same period. Furthermore, the company is set to announce its quarterly results on 15th May 2024.
Previously, a joint venture of the company had emerged as the Lowest Bidder (L1) from Southern Railway for the Redevelopment of Thiruvananthapuram Central Railway Station on Engineering, Procurement and Construction (EPC) mode worth Rs. 439 crores.
Rail Vikas Nigam has achieved a significant milestone with its order book reaching Rs. 65,000 crores. This substantial order book is evenly divided between railway projects and market-driven projects, with 50 percent coming from each sector. The company further aims to increase the order book to Rs 75,000 crore in the coming year.
Additionally, the company’s return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), were reported at decent numbers during FY22-23 with the former reported at 19.39 percent and the latter at 15.88 percent.
Moreover, the company also targets a turnover of Rs 20,000 crores to 22,000 crores with bottom-line growth strategies. In addition, the PSU company looks to transform the local scenario with global infra levels, focusing mainly on railway, metro, and other segments.
Headquartered in New Delhi, Rail Vikas Nigam was incorporated in 2003. The company is engaged in the business of constructing Rail Infrastructure projects in India. The company undertakes rail project development and implementation projects as well as provides financial resource mobilization services to its customers spanning various Central and State Government Ministries, departments, etc.
Written By Vaibhav Patil
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