On December 01, 2024, Rail Vikas Nigam (RVNL) announced that it had emerged as the lowest bidder for a distribution infrastructure development project valued at ₹642.56 crore from Punjab State Power Corporation (PSPCL).
The project entails upgrading the distribution infrastructure for Package-3 in Punjab’s central zone, focusing on implementing HT/LT infrastructure loss reduction activities under the Reforms-Based and Results-Linked Revamped Distribution Sector Scheme (RDSS).
The estimated cost of the project is ₹642.56 crore, with an execution period of 24 months.
In a recent financial update, Rail Vikas Nigam reported a 27% year-on-year drop in net profit, which fell to ₹286.9 crore from ₹394.3 crore last year. This decline was attributed to lower operating margins and a reduction in earnings.
The company’s revenue from operations decreased by 1.2% YoY, totalling ₹4,855 crore compared to ₹4,914.3 crore in Q2 FY24.
Additionally, RVNL’s EBITDA declined by 9%, reaching ₹271.5 crore, with EBITDA margins narrowing to 5.6% from 6% in the previous year.
On December 02, 2024, RVNL share price traded 1.54% higher at ₹442.50 at 9:45 AM on NSE. The stock opened at ₹437.50 higher than its previous close of ₹435.85.
RVNL is primarily involved in the planning, design, construction, and modernization of railway infrastructure in India. The company focuses on projects that include the development of new railway lines, electrification, station redevelopment, and track doubling, along with other related infrastructure projects.
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.
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