RVNL's shares rose by 3.29%, reaching an intraday high of Rs 626.65 per share following the announcement.
Rail Vikas Nigam Limited (RVNL) has recently secured a significant contract worth Rs 739 crore from the Himachal Pradesh State Electricity Board (HPSEBL).
This contract is for the development of distribution infrastructure in the Central Zone of Himachal Pradesh under the Revamped Reforms-based and Results-linked Distribution Sector Scheme, aimed at reducing losses and improving efficiency in the electricity distribution network.
KEY POINTS
- RVNL landed a Rs 739 crore contract from Himachal Pradesh State Electricity Board (HPSEBL) for enhancing the power distribution infrastructure.
- This project aims to cut down losses and boost efficiency in Himachal Pradesh’s Central Zone.
- The project is expected to be completed within 24 months.
- RVNL’s stock price surged by 3.29%, reaching an intraday high of Rs 626.65 per share after the announcement.
- Founded in 2003, RVNL focuses on rail infrastructure projects, including new lines, electrification, and metro projects.
- For Q4FY24, RVNL’s profit rose 33.2% to Rs 478.6 crore, and revenue increased by 17.4% to Rs 6,714 crore.
- The Board of Directors will review the unaudited financial results for the quarter ending June 30, 2024, on August 8.
- RVNL’s market capitalization is Rs 1,28,583.19 crore.
Overview
Project Details
| Aspect | Details |
|---|---|
| Project Value | Rs 739 crore |
| Client | Himachal Pradesh State Electricity Board (HPSEBL) |
| Scope | Development of distribution infrastructure |
| Zone | Central Zone of Himachal Pradesh |
| Duration | 24 months |
Company Performance
| Metric | Q4FY24 | Q4FY23 |
|---|---|---|
| Profit | Rs 478.6 crore | Rs 359 crore |
| Revenue | Rs 6,714 crore | Rs 5,719.8 crore |
| Ebitda Margin | 6.8% | Not specified |
RVNL’s new contract involves enhancing the power distribution framework in Himachal Pradesh’s Central Zone. This effort is part of a broader initiative aimed at reforming and linking results to performance, focusing on reducing power losses and boosting overall efficiency.
Winning this contract marks a significant achievement for RVNL, showcasing their competitive edge as they emerged as the lowest bidder.
The project, valued precisely at Rs 739,07,41,040, is scheduled to be completed within two years. This announcement had a positive impact on RVNL’s stock, driving up the share price by 3.29% to an intraday high of Rs 626.65 per share.
This rise in stock value reflects the market’s confidence in RVNL’s capabilities and future growth potential.
RVNL, headquartered in New Delhi, has been a key player in India’s rail infrastructure sector since its establishment in 2003. The company undertakes a variety of projects, including new railway lines, gauge conversions, electrification, and the construction of metro projects and cable-stayed bridges.
Moreover, RVNL provides financial resource mobilization services, catering to clients such as Indian Railways and various government bodies.
Click here to check the RVNL’s recent IPO.
Financial Performance
RVNL has demonstrated robust financial health, with a notable 33.2% year-on-year increase in profit for the fourth quarter of the fiscal year 2024, amounting to Rs 478.6 crore.
Revenue for the same period saw a 17.4% rise, reaching Rs 6,714 crore. The company’s Ebitda margin stood at 6.8%, indicating efficient management of operational costs. With a market capitalization of Rs 1,28,583.19 crore, RVNL continues to show strong market performance.
The company’s Board of Directors is set to meet on August 8 to review and approve the unaudited financial results for the quarter ending June 30, 2024. This upcoming meeting is anticipated to provide further insights into RVNL’s financial strategies and outlook.
People May Ask
What is the value of the contract RVNL secured from HPSEBL?
The contract is valued at Rs 739 crore.
What does the project involve?
The project involves developing distribution infrastructure in the Central Zone of Himachal Pradesh under a revamped reform-based and results-linked scheme.
How long will the project take to complete?
The project is expected to be completed within 24 months.
How has this order affected RVNL’s stock?
The announcement led to a 3.29% increase in RVNL’s share price, reaching an intraday high of Rs 626.65 per share.
What other projects does RVNL handle?
RVNL specializes in various rail infrastructure projects, including new lines, gauge conversion, electrification, metro projects, and more.
When will RVNL announce its financial results for the quarter ending June 30, 2024?
The Board of Directors will meet on August 8 to consider and approve the unaudited financial results.
