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Rail Vikas Nigam Ltd (RVNL) secured a ₹837.67 crore contract from Eastern Railway for multi-tracking line construction. The JV-led project involves bridge construction, earthwork, and railway track laying over 36 months.
State-owned Rail Vikas Nigam Ltd (RVNL) has received a Letter of Acceptance (LoA) from Eastern Railway for a major infrastructure project. The ₹837.67 crore contract involves multi-tracking railway line construction, encompassing earthwork, bridge building, track laying, and associated works.
The project spans from IR Ch. 205.000 km to 260.2 km, covering the stretch between Kalipahari (inclusive) and Pradhankhuta (exclusive). This initiative is a critical component of Eastern Railway’s infrastructure expansion.
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RVNL will execute the contract through a joint venture with SCPL, where RVNL holds a 74% stake, while SCPL owns the remaining 26%. The project scope includes:
Earthwork: Excavation, filling, and blanketing
Bridge construction: Both minor and major bridges
Railway track laying: Inclusive of drainage, retaining walls, and level crossings
The venture aims to complete the project within 36 months. RVNL confirmed that no related-party transactions are involved in the contract, as a domestic entity awards it.
While RVNL has secured a high-value project, its financial performance faced pressure in Q2 FY24. Key metrics included:
Net profit: ₹286.9 crore, a 27% decline year-on-year
Revenue: ₹4,855 crore, down 1.2% YoY
EBITDA: ₹271.5 crore, reflecting a 9% drop
EBITDA margins: Reduced to 5.6% from 6%
Despite operational challenges, the announcement adds significant value to RVNL’s project portfolio and reinforces its role in India's railway infrastructure development.
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Ahead of this announcement, RVNL share price closed slightly higher at ₹422.25 on Thursday, indicating positive market sentiment. The contract win is expected to boost investor confidence, potentially stabilising RVNL’s market performance amid operational challenges.
RVNL’s ₹837.67 crore contract underlines its prominence in executing large-scale railway projects. With a 74% stake in the SCPL JV, RVNL continues to strengthen its position as a key player in Indian railway infrastructure development.
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