Shares of Rail Vikas Nigam Ltd (RVNL) rose over 5 per cent in early trade after the state-owned firm inked an MoU with Mahanadi Coalfields Limited (MCL) for entrusting Project Management Consultancy for Rail Infrastructure works of MCL to RVNL from concept to commissioning.
Rail Vikas Nigam stock climbed 5.09 per cent to Rs 36.10 against the previous close of Rs 34.35 on BSE. Earlier, the stock opened 3.2 per cent higher at Rs 35.45. Rail Vikas Nigam share is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Market cap of the firm rose to Rs 7,433.10 crore on BSE.
Total 3.46 lakh shares changed hands amounting to a turnover of Rs 1.23 crore on BSE. The share has gained 33.08 per cent in one year and risen 2.45 per cent since the beginning of this year. The mid cap stock hit a 52-week high of Rs 44.75 on October 25, 2021 and a 52-week low of Rs 26.35 on April 19, 2021.
RVNL reported a 4.27 per cent rise in net profit at Rs 293.01 crore for the third quarter ended December 31, 2021 against Rs 281.02 crore in the corresponding quarter a year ago.
Sales climbed 35.28 per cent to Rs 5049.24 crore in Q3 of last fiscal against Rs 3732.44 crore in the corresponding quarter of the previous fiscal.
Operating profit excluding other income rose 45.21 per cent to Rs 319.17 crore in the December quarter against Rs 219.80 crore against Q3 of FY20.
RVNL executes all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable stayed bridges, and institutional buildings. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling contracts, project and contract management.
MCL is a subsidiary of Coal India Ltd and has its coal mines spread across Odisha. It has a total of seven open cast mines and three underground mines. There are 45 sanctioned mining projects in MCL with a capacity of 190.83 Mt of coal. The total capital outlay of 45 projects is Rs 6,076.78 crore ($800 million).
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