RVNL wins fresh order from Indian Railways, stock reacts 

Shares of Rail Vikas Nigam Ltd (RVNL) were trading on a flat note after the firm said it has received letter of acceptance from South Central Railway for Engineering Procurement Construction (EPC) contract. The cost of the project is Rs 294.94 crore. It is to be completed within 24 months. 

In the current session, RVNL shares were trading 1.01% lower at Rs 415.55 on BSE. Market cap of RVNL stood at Rs 86,643 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 36.2, signaling it's trading neither in the overbought nor in the oversold zone. Rail Vikas Nigam shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day but higher than the 200 day moving averages.    

The contract relates to doubling of track between Navipet station (Excl) from Km 446.900 to Indalvai Station (Incl) Km 482.900 (33.70 km), {excluding Nizamabad Yard from Km 458.825 to 461.125 (i.e.) 2.3 Km} including electrification & signaling works in of South-Central Railway in connection with Mudkhed-Medchal doubling project in Telangana.

RVNL reported a 27.24 per cent year-on-year (YoY) fall in its September 2024 quarter (Q2 FY25) net profit. In Q2, the rail PSU's 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 (quarter-on-quarter) basis, RVNL's profit climbed 28.12 per cent and revenue moved up by 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.