RVNL bags contract worth ₹137 Crore from Central Railway

31 Dec 2024 , 12:04 PM

On Monday (December 30), Rail Vikas Nigam Ltd (RVNL) announced that it had been declared the lowest bidder (L1) by Central Railway for a project involving the design, erection, supply, testing, and commissioning of a 132/55 KV traction substation, sectioning posts, and sub-sectioning posts in the Bhusaval-Khandwa section.

The contract aims to upgrade the 2×25 KV traction system, which will use Scott linked transformers to support a 3,000 MT load target. The EPC (engineering, procurement, and construction) project is estimated to cost ₹137.17 Crore, including all applicable taxes.

The project is anticipated to be completed in two years.

RVNL’s net profit declined 27% year-on-year (YoY) to ₹286.9 Crore against ₹394.3 Crore in the previous corresponding period, owing to lower operating margins and earnings.

The company’s revenue from operations dipped 1.2% year-on-year to ₹4,855 Crore, as compared to ₹4,914.3 Crore in Q2FY24. EBITDA slipped 9% to ₹271.5 Crore, with margins dropping to 5.6% from 6% in the previous year, representing increased operational constraints.

At around 9.54 AM, RVNL was trading 3.10% higher at ₹420.95, against the previous close of ₹408.30 on NSE. The counter touched an intraday high and low of ₹427.90, and ₹413.35, respectively.

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