RVNL shares surge 15% on order win; up 1,000% in 3 years

Shares of Rail Vikas Nigam Limited surged as much as 15.3% to hit a 52-week high of ₹345.70 apiece on the BSE, a day after the company bagged an order from the South Eastern Railway. The order amount has not been disclosed by the company.

“Rail Vikas Nigam Limited has received Letter of Acceptance from SER HQ-ELECTRICAL/SOUTH EASTERN RAILWAY for “Design, Supply, Erection, Testing and Commissioning for upgradation of Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Kharagpur (Excl.)- Bhadrak (Excl.) section of Kharagpur division of South Eastern Railway to meet 3000 MT loading Target,” the company says in a regulatory filing.

Following this, shares of RVNL opened higher at ₹304.75, up 1.7%, as against the previous closing price of ₹299.65. At 12:44 pm, the share price of the company was trading 12.45% higher at ₹336.95. In contrast to this, the broader BSE Sensex was trading flat at 74,051.50. The company’s market capitalisation stood at ₹70,244.33 crore with more than 33 lakh shares exchanging hands on the BSE, as against the two-week average of 11.07 lakh shares. The shares of RVNL hit a 52-week low of ₹110.50 on May 31, last year.

In the past one month, three months and one year, the counter has surged 30.72%, 29.76% and 191.09%, respectively. In the year-to-date period, the counter has surged 85.62%. In two years and three years, the counter has surged 963% and 1,028%, respectively.

Notably, in the January to March quarter of FY24, the consolidated net profit of the state-run railway company stood at ₹478.40 crore, up 33.2% year-on-year, as against ₹359.35 crore in the corresponding period of the previous year. The company’s revenue from operations during the quarter under review stood at ₹6,714.01 crore, up 17.3%, as against ₹5,719.83 crore in the March quarter of FY23.

RVNL’s EBITDA (earnings before interest, tax, depreciation and amortization) surged by 21.8% YoY to ₹456.4 crore in the March quarter of FY24, as against ₹374.6 crore in the corresponding period of the previous year. The EBITDA margin of the state-run railway company stood at 6.8% during the quarter under review, up 6.7% in the corresponding period of the previous year.

In FY24, RVNL’s consolidated net profit stood at ₹1,462.95 crore, as against ₹1,267.95 in FY23. The revenue from operations of RVNL in FY24 stood at ₹21,732.58 crore as against ₹20,281.57 crore.

The company’s board has recommended a final dividend of ₹2.11/- per share (i.e. 2 1.10%) on the paid-up equity share capital for the financial year 2023-24.