Shares of this railway electrification company reached the 5 percent upper price band on Wednesday after securing a Rs. 643.88 million contract for Overhead Equipment (OHE) and Traction Substation (TSS) work for a new line section at Araria-Thakurganj, facilitated by Rail Vikas Nigam Limited.
Price Movement
In Wednesday’s trading session, BCPL Railway Infrastructure Limited’s share price locked at 5 percent upper circuit limit of Rs.98.92 per share, rising from its previous close of Rs.94.21 apiece.
Contract Specifications
BCPL Railway Infrastructure Limited has received a contract for Overhead Equipment (OHE), Traction Substation (TSS), and SCADA work for the new line at Araria-Thakurganj under Rail Vikas Nigam Limited.
The agreement includes the design, supply, erection, testing, and commissioning of a 25 kV, 50 Hz, single-phase AC electrification system, along with associated works for the Araria-Galgalia new line project. The total project cost is Rs.64.388 crore.
Management Commentary
Commenting on the development, Mr. Aparesh Nandi, Chairman said, “We at BCPL Railway Infrastructure Limited are pleased to inform our stakeholders on our recent order intake at Araria-Thakurganj of N.F. Railway under Rail Vikas Nigam Limited. The value of this order is Rs.643.88 million and we are quite optimistic about the pipeline of orders in the near future also.”
Recent updates
During the quarter ending June 30, 2024, the company’s railway business showed strong performance by improving its EBITDA margin despite inflationary pressures. With new orders and a robust pipeline of projects, revenue growth is expected in the upcoming quarter, as the railway orders position reached Rs.223.63 crores.
Additionally, the 300 TPD Rice Bran Oil Extraction project is nearing completion, with investments totaling Rs.43.76 crores, and management is optimistic about commencing commercial operations soon.
Financial Performance
In its latest financial update, the company reported net profits of Rs.1.94 crore for Q1 FY25, a 12 percent increase from Rs.1.73 crore in Q1 FY24. However, revenue fell 8 percent to Rs.18.27 crore in Q1 FY25, from Rs.19.83 crore in the same quarter last year.
Company Profile
BCPL Railway Infrastructure Limited is dedicated to railway infrastructure development, specialising in the design, drawing, supply, erection, and commissioning of 25 kV, 50 Hz single-phase traction overhead equipment.
The company undertakes various projects, such as railway electrification, turnkey overhead equipment initiatives, and modifications to existing railway lines, playing a vital role in improving connectivity throughout India, especially in rural and northeastern areas.
Written by – Siddesh S Raskar
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