The shares of Navratna PSU company under the Ministry of Railways, which specializes in executing railway infrastructure projects, including track laying, electrification, and station development, jumped upto 3 percent after the company emerged as the Lowest Bidder (L1) from the Southern Railway for a project worth ~Rs. 143.38 crore.
Price action
With a market capitalization of Rs. 71,703.84 Crores on Friday, the shares of Rail Vikas Nigam Limited jumped upto 3.2 percent, making a high of Rs. 348.35 compared to its previous closing price of Rs. 337.55.
What Happened
Rail Vikas Nigam Limited’s subsidiary, VRC Constructions, has emerged as the Lowest Bidder (L1) for an electric traction system upgradation project by Southern Railway for approximately Rs. 143.38 crore.
The project is to upgrade the traction system from 1×25 kV to 2×25 kV in the Salem Jn.–Podanur Jn. and Irugur–Coimbatore–Podanur Jn. sections. The upgrade aims to enhance freight capacity to meet a 3000 MT loading target, with a 24-month execution timeline.
About the Company
Rail Vikas Nigam Limited (RVNL) is a public sector enterprise under the Ministry of Railways, Government of India. It is primarily engaged in the development and execution of railway infrastructure projects, such as new lines, electrification, gauge conversion, and station modernization, and it plays a key role in expanding and upgrading India’s rail network.
Order Book & Future Plans
The company currently holds a robust order book of Rs. 97,000 crore, comprising Rs. 49,000 crore from competitive bidding and Rs. 47,600 crore from railway projects. The management is focusing on market-driven bidding strategies and expects an annual turnover of Rs. 28,000 to Rs. 30,000 crore, with project execution timelines of 3 to 4 years.
Future Guidance
Management remains optimistic about achieving revenue targets, supported by favorable Q4 conditions. They aim to maintain healthy margins despite competitive challenges, driven by operational efficiencies and strong execution capabilities positioning the company for sustained growth in the coming quarters.
Financials
The company’s revenue rose by 3.6 percent from Rs. 5,016.97 crore to Rs. 4,836.06 crore in Q3FY24-25. Meanwhile, Net profit fell from Rs. 358.57 crores to Rs. 311.44 crore during the same period.
Written by Sridhar J
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