Shares of Rail Vikas Nigam Ltd (RVNL) rose 2.5 percent to Rs 482 on December 17 after the company announced a significant order win from Maharashtra Metro Rail Corporation. The contract, valued at Rs 270 crore including GST, is for the construction of 10 elevated metro stations as part of the second phase of the Nagpur Metro Rail Project.
The project involves building seven elevated metro stations in Reach 3A and three stations in Reach 4A. Reach 3A includes stations like Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna. In Reach 4A, the construction will cover Pardi, Kapsi Khurd, and Transport Nagar. The project is expected to be completed within 30 months.
This is RVNL’s second big order in December. On December 9, the company had received a Rs 186.76 crore project from East Central Railway for upgradation of electric traction system. The back-to-back wins highlight RVNL’s growing order book and strong presence in rail infrastructure projects.
Contrasted to the order flow in the recent past, RVNL posted a 27 per cent year-on-year drop in Q2 FY24 earnings. The net profit of the company was pegged at Rs 286 crore due to lower operating margins. Revenue declined merely 1.2 per cent to Rs 4,855 crore, whereas EBITDA fell by 9 per cent and caused narrower margins of 5.6 per cent, compared to 6 percent during the same quarter previous year.
The RVNL stock traded 2.36 per cent up at Rs 481 in afternoon deals compared to the previous close. The stock has given stellar returns and soared 159 per cent so far in 2024 thus becoming one of the biggest gainers this year.
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Source: Moneycontrol
News Desk
