RVNL scales record high on bagging Rs 604.19-cr Madhya Gujarat Vij Company project

Rail Vikas Nigam is a government-owned ‘Navaratna’ company primarily engaged in railway infrastructure project execution activities, including track renewal, electrification, station modernization, and bridge construction.

Shares of Rail Vikas Nigam Limited hit an all-time high of Rs 163.45 on September 4 after the company on September 2 announced that it has bagged orders worth Rs 604.19 crore from the Madhya Gujarat Vij Company.

“The company has received a letter of acceptance for development of distribution infrastructure work for loss reduction in Vadodara and Dahod districts under the revamped reforms-based and results-linked distribution sector scheme,” the company said in a regulatory filing with the exchanges.

“The project cost for the work in Vadodara district is Rs 322.08 crore, while the cost for work in Dahod district is Rs 282.11 crore. As a part of the order-win, the company is expected to complete the projects in a span of 31 months,” it added.

At 2pm, the Rail Vikas Nigam stock was quoting at Rs 157.15, up Rs 18.85, or 13.63 percent, on the NSE.

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In reaction to the regulatory filings, nearly 22 crore shares of the company changed hands at the bourses against a monthly average of 2 crore shares. The stock is up 129.18 percent in year-to-date terms.

In its results for the April-June quarter, the company reported a 20.06 percent year-on-year (YoY) rise in revenue from operations at Rs 5,572 crore. Net profit for the quarter increased 15.10 percent YoY to Rs 343 crore. The operating profit margins for the quarter remained flat at 6 percent.

Rail Vikas Nigam is a government-owned ‘Navaratna’ company engaged in railway infrastructure project execution activities, including track renewal, electrification, station modernization, and bridge construction.