RVNL shares rise 4% on winning Rs 160 crore project from East Coast Railway

Shares of Rail Vikas Nigam Limited (RVNL) rose 4% to Rs 405 in Tuesday's trade on the BSE after the company secured an order worth Rs 160 crore from East Coast Railway.

"Rail Vikas Nigam Limited has emerged as the lowest bidder (L1) from East Coast Railway for the provision of an automatic block signalling system with dual MSDAC and alterations in existing El/Pl/RRI stations in the sections of Jakhapura-Nergundi, Khurda Road-Bhusandpur & Bhusandpur-Golanthara over Khurda Road Division of East Coast Railway," the company said in an exchange filing.

The project is expected to be completed within 24 months.

Earlier in June, RVNL received a Letter of Award (LoA) from National Thermal Power Corporation (NTPC) for a Project Execution Agency (PEA) contract to execute balance civil and HM works of the barrage complex, including part of the HRT package of the Rammam hydroelectric project stage-III (3x40 MW). The contract is valued at Rs 495.15 crore, with a project completion timeline of 66 months, or 5.5 years.

Recently, RVNL also informed the exchanges of winning a Rs 38.10 crore contract from the South East Central Railway. This contract involves the provision of an automatic signalling system with electronic interlocking between the Champa, Saragaon, Baraduar, and Sakti sections.

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At 11:21 am, the stock was trading 2.5% higher at Rs 400 on the BSE. Year-to-date, the stock has surged 120%, and it has gained 225% over the past year.

In Q4 FY24, RVNL reported a 33.2% year-on-year (YoY) increase in net profit at Rs 478.6 crore, up from Rs 359 crore in the corresponding quarter of FY23. The company's revenue from operations grew by 17.4% to Rs 6,714 crore, compared to Rs 5,719.8 crore in the same period of the previous fiscal.

At the operating level, EBITDA rose 21.8% to Rs 456.4 crore in the fourth quarter of this fiscal over Rs 374.6 crore in the year-ago period. The EBITDA margin stood at 6.8% in the reporting quarter compared to 6.6% in the corresponding period in the previous fiscal.

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