Shares of the railway company jumps up to 3 percent in Tuesday’s trading session after emerging as lowest bidder for projects worth Rs. 386 crores. The shares have delivered a multibagger return of 280 percent to its shareholders in one year.
With a market capitalization of Rs. 50,781 crores, the shares of Rail Vikas Nigam Ltd started Tuesday’s trading session positively at Rs. 250 compared to its previous close of Rs. 245.45. During the trading session, the shares hit a high of Rs. 252.45, gaining around 3 percent and are currently trading at Rs 239.50 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they had emerged as the Lowest Bidder from Maharashtra Metro Rail Corporation Limited for the design and construction of Elevated Viaduct of Length 4.519 Kms between PCMC and NIGDI (Bhakti Shakti) on the NorthSouth Corridor of Pune Metro Rail Project- Reach l -Extension. The project cost is Rs 339.23 crores and is to be completed in 130 weeks.
Furthermore, the company also became the Lowest Bidder from Central Railway for signalling and telecommunication work to provide Automatic block signalling in the Khapri-Sewagram Section of Nagpur Division. The project cost is approx Rs. 47.36 crores and will be completed within 12 months.
Earlier, the company had received multiple orders worth Rs. 2,093 crores. Notably, it secured a Letter of Award (LoA) from Madhya Pradesh PoorvKshetra Vidyut Vitaran valued at Rs. 251 crores. Additionally, RVNL, in a joint venture, received a Rs. 543 crores LoA from Madhya Pradesh Metro Rail Corporation. The Himachal Pradesh State Electricity Board awarded two projects collectively worth Rs. 1,298.21 crores in the north and south zones.
Looking at 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.
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.
Headquartered in New Delhi, Rail Vikas Nigam was incorporated in 2003. The company is engaged in the business of implementing various types of Rail infrastructure projects assigned by MoR including doubling, gauge conversion, new lines, railway electrification, major bridges, workshops, Production Units and sharing of freight revenue with Railways as per the concession agreement entered into with Ministry of Railway.
Written By Vaibhav Patil
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