RVNL shares in news on fresh order win from Indian Railways 

Shares of Rail Vikas Nigam Ltd (RVNL) are in fcous on Wednesday after the state owned firm said it has received a Letter of Acceptance for a project worth Rs 186.76 crore from East Central Railway. RVNL shares climbed 0.15% to Rs 437.60 on BSE in the previous session. Market cap of RVNL stood at Rs 91,240 crore on BSE. RVNL shares have a one-year beta of 1.5, indicating high volatility during the period.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 46.5, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading lower than the 5 day, 20 day, 30 day, 50 day, 100 day, 150 day but higher than the 10 day and 200 day moving averages.

The project involves the design, supply, erection, testing, and commissioning of traction substations with associated switching posts for the upgradation work of the electric traction system from 1X25 to 2X25 KV AT feeding system in the Gomoh - Patratu section of the Dhanbad Division of East Central Railway.

"Rail Vikas Nigam Limited has received Letter of Acceptance from East Central Railway for “Design, Supply, Erection, Testing & Commissioning of Traction Sub Stations with associated Switching Posts for upgradation work of electric traction system from 1X25 to 2 X 25 KV AT feeding system in Gomoh - Patratu Section of Dhanbad Division of East Central Railway," said RVNL in a communication to bourses.

The order is to be executed in 540 days.

RVNL reported a 27.24 per cent year-on-year (YoY) fall in its September 2024 quarter net profit. In the second quarter, profit came at Rs 286.88 crore as against Rs 394.26 crore in the year-ago period. Revenue from operations slipped 1.21 per cent to Rs 4,854.95 crore from Rs 4,914.32 crore in the corresponding period last year.

On a sequential basis, RVNL's profit climbed 28.12 per cent and revenue rose 19.18 per cent in the July-September 2024 quarter. In Q2 FY25, tax expenses slipped 0.49 per cent (YoY) to Rs 4,731.52 crore but surged by 17.21 per cent QoQ.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. 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 and award of contracts, project and contract management.