RVNL gets LoA for contract worth Rs 295 Crore

18 Nov 2024 , 04:18 PM

On Monday, November 18, Rail Vikas Nigam Ltd received a letter of acceptance from South Central Railway for a project worth ₹294.94 Crore.

The engineering procurement construction (EPC) contract is for doubling the track between Navipet and Indalvai stations in Telangana. It also covers the South Central Railway’s electrification and signalling improvements for the Mudkhed-Medchal doubling project.

The deal is expected to be finished in 24 months.

Last Monday, the company announced its second-quarter statistics, which showed a big reduction in profit and a minor decrease in revenue.

The company’s net profit decreased 27% to ₹286.9 Crore from the previous year’s ₹394.3 Crore, owing to lower operating margins and profitability.

The rail PSU’s revenue from operations decreased by 1.2% year on year to ₹4,855 Crore, from ₹4,914.3 Crore in Q2 FY24. EBITDA fell 9% to ₹271.5 Crore, with margins dropping to 5.6% from 6% in the previous year, showing increased operational constraints.

Earlier earlier month, the company’s joint venture with SCPL was the lowest bidder for an Eastern Railway project for ₹837.67 Crore.

The contract calls for earthwork in cutting and filling, blanketing, the construction of minor and major bridges, RUB, ROB, retaining walls, level crossings, side drains, catch water drains and ancillary works at a section between Kalipahari and Pradhankhuta in connection with the construction of a multi-tracking railway BG line, the company stated. It is set to be completed in 36 months.

The company’s stock closed 0.83% lower at ₹416, against the previous close of ₹419.50 on NSE.

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