Shares of State-owned Rail Vikas Nigam Ltd (RVNL) surged 2.5 percent to Rs 482 in morning trade on December 17 after it announced it received a letter of acceptance from Maharashtra Metro Rail Corporation for the construction of 10 elevated metro stations as part of the second phase of the Nagpur Metro Rail Project (NMRP).
The company, in a regulatory filing, said it has secured a contract worth Rs 270 crore, including GST, with a completion target of 30 months. The project covers the construction of seven elevated metro stations in Reach 3A—Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna—along with three elevated stations in Reach 4A: Pardi, Kapsi Khurd, and Transport Nagar.
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This is the company's second order in quick succession. On December 9, the railway construction major received a project worth Rs 186.76 crore from East Central Railway for the design, supply, erection, testing & commissioning of traction substations with associated switching posts for the upgradation work of the electric traction system.
In the second quarter, the company reported a 27 percent decline in net profit to Rs 286 crore down from Rs 394 crore in the same period last year. The fall was led by lower operating margins and reduced earnings.
Revenue from operations for the rail PSU declined by 1.2 percent year-over-year to Rs 4,855 crore, compared to Rs 4,914.3 crore in Q2 FY24. EBITDA dropped 9 percent to Rs 271.5 crore, with margins narrowing to 5.6 percent from 6 percent in the year-ago period, indicating rising operational pressures.
At about 9:20 am, shares of the company were trading at Rs 481, higher by 2.36 percent from the last close. RVNL shares have rallied a staggering 159 percent since the start of the year.
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