Rail Vikas Nigam Ltd (RVNL), a Mini Ratna public sector undertaking focused on executing projects, saw its shares rise by 15 percent on May 21. This surge followed the company’s acquisition of a Rs 148 crore contract from the South Eastern Railway. The contract involves the design, supply, erection, testing, and commissioning for upgrading the electric traction system in the Kharagpur division. RVNL is involved in mobilizing financial resources, developing rail projects, enhancing the golden quadrilateral and port connectivity, and raising extra-budgetary funds for Indian Railway project execution.

Following the announcement of the order win, shares of Rail Vikas Nigam Ltd (RVNL) soared, reaching a new all-time high of Rs 345.90 on the National Stock Exchange (NSE).

RVNL, a Mini Ratna public sector undertaking, serves as a project-executing agency. The company is involved in mobilizing financial resources, developing rail projects, enhancing the golden quadrilateral, improving port connectivity through rail projects, and raising extra-budgetary resources for the execution of Indian Railway projects.

Rail Vikas Nigam Limited (RVNL) announced in a regulatory filing that it has received a Letter of Acceptance (LoA) from South Eastern Railway. The LoA pertains to the design, supply, erection, testing, and commissioning required for upgrading the electric traction system from 1×25 KV to 2×25 KV for the Kharagpur – Bhadrak section of the Kharagpur division, aiming to meet a loading target of 3000 MT.

In a separate exchange filing, RVNL announced that the President of India has approved the immediate appointment of NC Karmali as the part-time Government nominee director on the RVNL board. This appointment will last until he either steps down from his role as Executive Director/Gati Shakti, Railway Board, or further orders are issued, whichever comes first.

Recently, the company reported a 33.2 percent year-on-year increase in net profit, reaching Rs 478.6 crore for the quarter ending March 2024. Additionally, RVNL’s revenue from operations grew by 17.4 percent year-on-year to Rs 6,714 crore during the same period, reflecting strong performance in both topline and operating numbers.

At the operating level, RVNL, a state-run railway company, reported a 21.8 percent year-on-year increase in EBITDA, reaching Rs 456.4 crore, with an EBITDA margin of 6.8 percent for the reporting quarter.

The RVNL board has also recommended a final dividend of Rs 2.11 per equity share. This year, RVNL shares have surged by over 85 percent, significantly outperforming the Nifty’s 3.6 percent return.

Over the past year, RVNL has delivered multibagger returns of approximately 192 percent, in contrast to Nifty’s 23 percent return.

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