RVNL Secures ₹837.67 Crore Major Rail Contract

25 Nov 2024 , 06:41 PM

Rail Vikas Nigam Ltd (RVNL) has received a Letter of Acceptance (LoA) from Eastern Railway for an infrastructure project worth ₹837.67 crore. The project includes earthwork, bridge construction, railway track laying, retaining walls, level crossings and drainage works, the company said in a filing with the BSE.

It covers from Kalipahari (inclusive) to Pradhankhuta (exclusive), ranging in distance from IR Ch. 205.000 km to 260.2 km. The scheme forms a part of a larger construction program of a multi-tracking Broad Gauge (BG) railway line. The 74% stake RVNL has formed a joint venture with the SCPL of holding 26%.

The execution of the project is scheduled to complete within 36 months; meanwhile, RVNL takes the lead in executing the project. It clarified that the contract is domestic and had no related-party transactions involved.

There has been a 27% YoY decline in net profit of RVNL to ₹286.9 crore during the second quarter of FY25, versus ₹394.3 crore for the same quarter a year ago. Operational revenue declined by 1.2% YoY to ₹4,855 crore, compared to ₹4,914.3 crore during Q2 FY24. EBITDA declined 9% at ₹271.5 crore, with margins dropping to 5.6% against 6% YoY, thereby indicating increasing operational pressures.