One of the Railway and Navaratna PSU stocks engaged in rail infrastructure projects, which included doubling the track, gauge conversion, new lines, railway electrification, major bridges, and workshops. The stock has secured an order from South Central Railway for the EPC contract agreement for the doubling of tracks worth Rs. 625.08 crore.
Stock Movement
Rail Vikas Nigam Limited’s share has plunged by 0.68 percent from the previous close of Rs. 446.50. The stock opened at Rs. 451.30 and is currently trading at Rs. 443.45 with a high of Rs. 456.90 and a low of Rs. 441.50. The market capitalization now stands at approximately Rs. 92,741.69 crore.
What Happened
Rail Vikas Nigam Limited has secured an order as the lowest bidder (L1) from South Central Railway for the Engineering, Procurement, and Construction (EPC) contract agreement for the doubling of track between Parbhani to Parli stations with a distance of 58.06 km, including electrification and signaling works in connection with the Parbhani-Parli doubling project of South Central Railway in the state of Maharashtra. The project cost of doubling the track is to be Rs. 625.08 crore and is associated with a time period of within 30 months.
Order Book
Rail Vikas Nigam Limited’s current order book stands at Rs. 85,000 crore in FY24. The company aims to maintain an order book of Rs. 75,000–100,000 crore. They expect Rs. 20,000-25,000 crore annual order inflow through bidding.
Rail Vikas Nigam Limited participated in 142 bids worth Rs. 65,000 crores in FY23-24. The company achieved a success rate of 23.24% in civil engineering, 35.78% in electrical projects, and 14.27% in S&T projects. They plan to bid for over 150 projects worth Rs. 75,000 crores in FY24-25. RVNL’s strategy maintains a 3-4x order book compared to annual turnover.
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Financials and ratios
Rail Vikas Nigam Limited’s revenue has increased from Rs. 20,282 crore in FY23 to Rs. 21,733 crore in FY24, which has increased by 7.15 percent. The net profit of the company has increased by 15.38 percent, from Rs. 1,268 crore in FY23 to Rs. 1,463 crore in FY24.
In terms of quarterly results, the company revenue has decreased by 34.01 percent, from Rs. 5,446 crore in Q1 FY24 to Rs. 4,064 crore in Q1 FY25. The net profit has also down by 53.21 percent, from Rs. 334 crore in Q1 FY24 to Rs. 218 crore in Q1 FY25
In terms of ratio, Rail Vikas Nigam Limited’s ROE and ROCE are 20.4% and 18.7%, respectively. The debt-to-equity ratio of Sprayking Limited is 0.77x, and EPS will be Rs. 6.46.
Shareholding Pattern
Rail Vikas Nigam Limited has a majority stake held by the promoters at 72.84 percent, foreign institutional investors at 5.05 percent, domestic institutional investors at 6.33 percent, and the public at 15.78 percent as of September 2024.
Company Profile
Rail Vikas Nigam Limited (RVNL) was established in 2003 and is a prominent public sector undertaking in India, established to bridge infrastructure gaps within Indian Railways. RVNL specializes in a wide array of rail-related projects, including new lines, doubling of tracks, gauge conversions, and electrification. With a commitment to efficiency, it manages projects from planning to commissioning, serving both domestic and international clients, including central and state government bodies.
Over two decades, RVNL has expanded its capabilities beyond rail infrastructure. The company now undertakes various infrastructure projects globally, such as metro lines, bridges, and workshops. With a “Navratna” status, RVNL emphasizes technical expertise and timely project execution, establishing a strong international footprint and exploring broader infrastructure opportunities across sectors
Written By- Nikhil Naik
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