Rail Vikas Nigam Ltd. has received the letter of acceptance from South Central Railway for a project worth Rs 294.9 crore, the state-run firm said in an exchange filing on Monday.
The contract involves "doubling of track between Navipet station to Indalvai station", along with electrification and signaling work on the South-Central Railway as part of the Mudkhed-Medchal doubling project in Telangana, the regulatory filing said.
The project needs to be executed within a time frame of 24 months, RVNL noted.
RVNL's Recent Order Wins
Earlier, on Nov. 5, an RVNL-led consortium also comprising HFCL Ltd. and Aerial Telecom Solutions Pvt., emerged as a lowest bidder for Rs 5,008-crore project from Bharat Sanchar Nigam Ltd.
The project included development, creation, upgradation and operation and maintenance of middle mile network of Bharat Net.
On the same date, another JV headed by RVNL emerged as the lowest bidder for an Eastern Railway contract worth Rs 837.7 crore.
The contract involves earthwork in cutting and filling, blanketing, construction of minor bridges, major bridges, road under bridge, road overbridge, retaining wall, level crossing and other ancillary works.
RVNL Q2 Performance
RVNL reported a 27% fall in its profit to Rs 286.9 crore in the quarter ended Sept. 30, 2024, as compared to Rs 394.4 crore in the same period last year.
The company's revenue from operations declined 1.2% in the second quarter of this fiscal to Rs 4,854.95 crore, as against Rs 4,914.3 crore in the year-ago period.
RVNL's earnings before interest, tax, depreciation and amortisation slipped to Rs 271.5 crore in the September quarter from Rs 298.3 crore in the year-ago period. The margin contracted to 5.6% from 6.1%.
On Monday, the shares of RVNL fell as much as 2.38% to Rs 409.5 apiece. However, as the session progressed, it recovered some of the losses. At 3:00 p.m., the scrip was trading 0.6% lower at Rs 416.85 apiece on the NSE, compared to a 0.3% decline in the benchmark Nifty 50.
Out of three analysts tracking RVNL, one maintains a 'buy' rating on the stock, another recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 39.9%.
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