RVNL Receives Rs 625-Crore Order From South Central Railway
The domestic project won by RVNL has to be completed within 30 months.
Rail Vikas Nigam Ltd. on Tuesday received a Letter of Acceptance from South Central Railway for a project worth Rs 625 crore. The order includes engineering, procurement and construction work of Prabhani-Parli doubling project in the state of Maharashtra.
The order is for doubling of track between Parbhani to Parli stations that stretches across 58.06 kms, according to the exchange filing released on Tuesday. The project also includes electrification and signaling works.
The domestic project is to be completed within 30 months. This is the second project for doubling of track from South Central Railway in the span of one week.
The first order received on Nov. 18 was for doubling of track between Navipet station and Indalvai station. It also includes electrification and signaling works for the project.
Last week, RVNL also received a contract worth Rs 838 crore from the Eastern Railway for construction of minor and major bridges, retaining walls, level crossings, side drains, catchment drains, track work, and other related tasks.
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RVNL Q2 Performance
RVNL's net profit in the second quarter of the current fiscal fell 27% to Rs 286.9 crore, as compared to Rs 394.4 crore in the same period last year. Revenue from operations declined 1.2% to approximately Rs 4,855 crore in the July–September period, as against Rs 4,914.3 crore in the year-ago period.
During the quarter, the company incurred a net loss of Rs 15.2 crore from its joint venture and associates as compared to a gain of Rs 24.2 crore last year.
Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 9% year-on-year to Rs 271.5 crore. The Ebitda margin contracted by 50 basis points to 5.6% from 6.1% in the same period the previous year.
RVNL Share Price
RVNL stock fell as much as 1.35% during the day to Rs 432.20 apiece on the NSE. The stock closed 0.94% lower at Rs 434 per share. This compares with a 0.11% decline in the benchmark Nifty 50. It has risen 161.29% in the last 12 months and 138.46% year-to-date.
Out of three analysts tracking the company, one maintains a 'buy' rating, one recommends a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 42.1%.
