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RVNL has received a ₹186.77-crore project from East Central Railway for upgrading electric traction in the Gomoh-Patratu section. RVNL share price ended marginally lower at ₹437.
State-owned Rail Vikas Nigam Ltd (RVNL) announced its receipt of a ₹186.77-crore contract from East Central Railway. The project involves designing, supplying, erecting, testing, and commissioning traction substations and associated switching posts to modernise the electric traction system in the Gomoh-Patratu section of the Dhanbad division.
Project Value: ₹186.77 crore (inclusive of applicable taxes).
Scope of Work: Upgrade traction system to 2X25 kV AT feeding system.
Timeline: Completion expected within 540 days.
Objective: Improve efficiency and modernise rail infrastructure.
The project focuses on enhancing the existing traction system from 1X25 kV to 2X25 kV, aligning with Indian Railways’ initiatives to improve operational efficiency and modernise infrastructure. The traction upgrade will cater to increased load capacity and ensure smoother operations in one of the critical railway divisions.
This development comes as RVNL continues to secure infrastructure projects, strengthening its foothold in rail modernisation. The project also highlights East Central Railway’s commitment to ensuring efficient and reliable transportation systems.
RVNL's financial performance in Q2 FY24 showed a 27% YoY decline in net profit to ₹286.9 crore. Revenue from operations decreased by 1.2% YoY to ₹4,855 crore, while EBITDA margins narrowed to 5.6% from 6% last year.
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Metric | Q2 FY24 | Q2 FY23 | Change YoY |
Net Profit (₹ crore) | 286.9 | 394.3 | -27% |
Revenue (₹ crore) | 4,855 | 4,914.3 | -1.2% |
EBITDA (₹ crore) | 271.5 | 298.4 | -9% |
EBITDA Margin | 5.6% | 6% | -0.4% |
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RVNL share price ended at ₹437, slightly lower after the announcement. Despite the marginal dip, the company’s consistent project wins, including a ₹642.57-crore power project from Punjab State Power Corporation Ltd, reflect its strong project pipeline.
This contract further solidifies RVNL’s position in India’s infrastructure development landscape, contributing to its long-term growth potential and the modernisation of the country’s rail network.
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