RVNL Shares Climb After Winning ₹111 Crore Railway Project

27 Aug 2024 , 01:05 PM

Rail Vikas Nigam Ltd. (RVNL) shares bounced back from early lows following the announcement that it had won the lowest bid for a Southern Railway project.

The project involves installing a Multi-Section Digital Automatic Block Signaling System (MSDAC) and replacing existing equipment on the Chennai Beach-Temburu and Chennai-Gudur sections to improve dual detection and automatic block signaling.

Established in 2003, RVNL is a central public sector enterprise under the Ministry of Railways, focused on transportation infrastructure development.

RVNL holds Navratna status, indicating its prominent role in the Indian infrastructure sector. The company handles projects from planning to completion and creates project-specific Special Purpose Vehicles (SPVs).

RVNL raises funds through extra-budgetary resources (EBRs) using a mix of equity and debt via SPVs. The new project awarded to RVNL is valued at ₹111 Crore and must be completed within 18 months. RVNL was recently added to the MSCI Global Standard Index as part of its latest rebalancing.

The company signed an MoU with Malaysia-based Dhaya Maju Infrastructure for railway projects across Southeast Asia. As of the end of June, RVNL’s order book totals ₹83,221 Crore, ensuring project visibility for the next four years.

The company reported a revenue decline due to geopolitical issues in the Maldives and pending claims worth ₹250 Crore from Metro authorities in Madhya Pradesh.

At the time of writing, shares of RVNL is trading at ₹576.25 which is a 0.16% dip than the previous close. RVNL shares has witnessed a 354% gain since the beginning of the year, and 216% since the beginning of the year.