Rail Vikas Nigam Ltd (RVNL) shares climbed 5% on November 6 after the company, along with Rithwik Projects Pvt Ltd (RPPL), emerged as the lowest bidder (L1) for a major contract in the Bengaluru Suburban Rail Project (BSRP). This significant win boosted RVNL’s shares, trading at Rs 467.25 by 9:34 AM, up nearly 4%. Year-to-date, RVNL has delivered impressive gains of 155%, far outperforming the Nifty 50’s 12% rise.
The awarded contract, valued at Rs 613 crore, comprises part of Package C4A of the BSRP and involves nine stations-one elevated and eight at ground level-along Corridor-4A. Major stations falling under this package include Heelalige, Singena Agrahara, Carmelaram, Bellandur, Marathahalli, and Doddanakundi. The project, apart from others, also includes intensive civil, structural, architectural, and electrical work, with a completion timeline of 24 months. The joint venture between the two, namely RVNL and RPPL, shall be divided in a majority shareholding ratio of 51:49, with the majority share lying with RVNL itself.
Despite this positive momentum, RVNL reported a 34.7% drop in net profit for the June quarter to Rs 223.92 crore, and revenue from operations declined by 26.9% to Rs 4,073.8 crore. However, this recent project win may help RVNL stabilize earnings in the upcoming quarters as it plays a pivotal role in developing Karnataka’s rail infrastructure.
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Source: Moneycontrol
News Desk
