Rail Vikas Nigam Ltd. has received a letter of acceptance from Eastern Railway for a project worth Rs 837.7 crore, according to an exchange filing on Friday.
The contract involves construction of minor and major bridges, retaining walls, level crossings, side drains, catchment drains, track work, and other related tasks. The work is supposed to be completed within 36 months.
RVNL will lead the project through its joint venture with SCPL. RVNL holds a 74% stake in the joint venture, while SCPL has 26%.
On Nov. 18, the company has received the LoA from South Central Railway for a project worth Rs 294.9 crore. The contract comprised doubling of track between Navipet station to Indalvai station, including electrification and signaling work on the South-Central Railway as part of the Mudkhed-Medchal doubling project in Telangana.
On Nov. 5. the RVNL-led consortium,, which includes HFCL Ltd. and Aerial Telecom Solutions Pvt., was awarded the lowest bid for a Rs 5,008-crore project from Bharat Sanchar Nigam Ltd. The project involves the development, creation, upgrading, and operation and maintenance of Bharat Net's middle-mile network.
The public sector enterprise recorded a 27% dip in its profit to Rs 286.9 crore in the second quarter of the current financial year, as compared to Rs 394.4 crore in the same quarter last year. Revenue from operations fell 1.2% to Rs 4,855 crore from Rs 4,914.3 crore in the year-ago period.
Shares of RVNL closed 0.39% lower at Rs 420.20 apiece on the National Stock Exchange, compared to a 2.39% advance in the benchmark Nifty. The share price has risen 153.44% in the last 12 months and 131.45% on a year-to-date basis.
Out of the three analysts tracking the company, one has a 'buy' rating on the stock, one recommends 'hold' and another suggests 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price target implies a potential downside of 40.3%.
Also Read: RVNL Bags Three Orders From Chennai Metro
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