Rail Vikas Nigam Limited (RVNL) witnessed a rise in its share price by up to 3 % today, on November 12, 2024, reaching an intraday high of Rs.447.80 per share. This boost followed the company’s announcement of emerging as the lowest bidder (L1) for a Rs.294.9 crore project from South Central Railway.
The awarded contract involves the doubling of a 33.7 km railway track between Navipet Station (excluding) and Indalvai Station (including), in Telangana, as part of the Mudkhed-Medchal Doubling Project. Notably, the 2.3 km Nizamabad Yard segment is excluded from the project scope. The contract includes electrification and signalling works and falls under the Engineering, Procurement, and Construction (EPC) model. The project is slated for completion within 24 months at a total cost of Rs.294.95 crore.
RVNL reported a year-on-year (YoY) decline in profit of 27.2% for Q2FY25, with net earnings dropping to Rs.287 crore from Rs.394.3 crore in the same quarter of FY24. Revenue also saw a marginal YoY decline of 1.2%, standing at Rs.4,855 crore in Q2FY25 compared to Rs.4,914.3 crore in Q2FY24.
Operationally, the company’s EBITDA dropped 9% YoY to Rs.271.5 crore in Q2FY25 from Rs.298.2 crore in Q2FY24, leading to a reduction in EBITDA margin by 40 basis points to 5.6%. The company’s shares have gained around 180% over the past year. Last week, RVNL secured another major order worth over Rs.180 crore from East Central Railway.
Conclusion: Established in 2003 and based in New Delhi, RVNL continues to secure major railway infrastructure projects, despite facing financial challenges in recent quarters. With a market capitalization of Rs.93,179.55 crore, the company remains a prominent entity in the BSE200 category, offering services such as doubling tracks, gauge conversion, railway electrification, and more.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 9, 2024, 10:38 AM IST
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