RVNL Wins ₹642.57 Crore Punjab Power Project Under RDSS

30 Nov 2024 , 12:08 PM

Rail Vikas Nigam Ltd (RVNL) has turned out to be the L1 for a significant power infrastructure project tendered by Punjab State Power Corporation Ltd (PSPCL). The total value of the project is ₹642.57 crore, including all applicable taxes.

This project encompasses developing distribution infrastructure for Package-3 in Punjab’s Central Zone under the Revamped Distribution Sector Scheme (RDSS), a reforms-based and results-linked initiative. Design HT and LT systems to prevent loss in the infrastructure in general and to increase the rate at which power is delivered at sites in Punjab.

RVNL publicly disclosed winning the tender as the company has experience in handling large infrastructures. The company also disclosed its Q2 FY25 results, which suffered a 27% on-year decline in net profits to ₹286.9 crore against ₹394.3 crore in the same quarter last year. Revenue from operations declined marginally by 1.2% YoY to ₹4,855 crore against ₹4,914.3 crore in Q2 FY24.

EBITDA declined 9% YoY to ₹271.5 crore, while operational margins compressed to 5.6%, compared with 6% in the same quarter last year, thereby hinting at a rise in operational difficulties. Net profit for RVNL improved by 28.1% QoQ and revenue rose by 19.2% sequentially. Tax expense for Q2 FY25 was at ₹4,731.5 crores, which declined 0.5% YoY but increased 17.2% QoQ.

This project win would help RVNL in a greater way in order to strengthen the infrastructure and power sector development in its bid to modernize the power distribution network of Punjab.