RVNL, HFCL shares climb up to 5% today; here's why

Shares of HFCL Ltd and Rail Vikas Nigam Ltd climbed up to 5 per cent in Thursday's trade after both companies announced fresh order wins. RVNL said it had received a Letter of Acceptance worth Rs 967.92 crore, including 18 per cent GST, from East Coast Railway, while HFCL said it had secured a contract worth around Rs 2,666.09 crore from RVNL for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle.

Shares of HFCL were locked at 5 per cent upper circuit limit at Rs 199.70 apiece. RVNL climbed 2.42 per cent to hit a high of Rs 251.20 on BSE.

According to RVNL, the Letter of Acceptance is for the 3rd and 4th line between Nergundi-Barang (22 km) and Khurda Road-Vizianagaram (363 km) on the Bhadrak-Vizianagaram section (385 km). 

RVNL said the work involves construction of Bridge number 539 - a 16x30.5 m open web steel girder bridge over the river Birupa at ch.402521 m. It also involved bridge number 544, a 32x65.84 m open web steel girder bridge over the river Mahanadi at ch.406305 m; bridge number 553, an 18x45.70 m open web steel girder bridge over the river Kathjori at ch.411589 m; and bridge number 557, a 20x45.70 m open web steel girder bridge over the river Kuakhai at ch.414607 m. 

The project will be executed on EPC mode and is to be completed within 1,095 days.

RVNL functions as an extended arm of the Ministry of Railways and executes railway projects such as new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, cable-stayed bridges and institutional buildings.

HFCL said its contract from RVNL covers the supply of telecom equipment and related accessories, installation and commissioning, creation of an optical fibre cable telecom network and maintenance of the project for 10 years, including a one-year warranty period. The company said this order is in addition to an earlier contract worth Rs 2,167.65 crore awarded by RVNL for BharatNet Phase-III projects in the Uttar Pradesh (East) and Uttar Pradesh (West) Telecom Circles. HFCL operates in telecom and defence equipment, optical fibre and optical fibre cables, and digital networks for telcos, enterprises and defence forces.

The order announcements from RVNL and HFCL, covering a railway bridge project and a BharatNet Phase-III telecom network project, lifted shares of both companies by up to 5 per cent in Thursday's trade.