RVNL rallies nearly 5% on receiving work order worth Rs 560 crore
Rail Vikas Nigam Ltd (RVNL) announced in a press release on May 31, that 'it has in its Joint Venture( JV) named RVNL - Bhartia JV has been awarded Letter of Acceptance (LoA) by Northeast Frontier Railway for Construction of Single Line BG Tunnel on May 30. The total estimated cost of the project is Rs 560.26 crore.
The project includes the construction of single line BG Tunnel No. 06 having a total length of 4930 m, including Escape Tunnel, Cut and Cover, Earthwork in Bank & Cutting to make formation, Security Barrack and other protection and ancillary works in connection with DMV-Kohima New BG Line Project by Northeast Frontier Railway.
The share has been buzzing on the bourses on the back of the order and logged an intraday high of Rs 34 which was 4.9% higher than its previous close of Rs 32.40.
RVNL functions as an extended arm of the Ministry of Railways (MoR) working for and on behalf of MoR. It is engaged in the business of implementing various types of rail infrastructure projects assigned by MoR including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, institution buildings etc.
Shares of RVNL have been trending this week after the company posted its Q4 results. Consolidated net revenue grew by 15.41% at Rs 6473.5 crore YoY and EBITDA (Excluding Other Income) also grew by 15.34% to Rs 408.38 crore. Net Profit, however, rose by 7.1% only to Rs 363.12 crore. EBITDA and PAT Margins were lower on YoY by 352 bps and 44 bps, respectively. The board of directors of the company declared a dividend of Rs 0.25 per equity share, for the recently concluded FY 2022.
At the closing bell, shares of RVNL last traded at Rs 33.30, up 2.78% on NSE.
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