Introduction:
RVNL share price experienced a notable surge, climbing by 4% following the announcement of a significant order win totaling Rs 495 crore. This upswing underscores the company’s continued growth trajectory, with its shares witnessing a remarkable 190% increase over the past year.
The surge in RVNL’s share price followed the acquisition of a substantial order worth Rs 495 crore from the National Thermal Power Corporation (NTPC). In an official exchange filing, RVNL disclosed that it had received a Letter of Award from NTPC
for the Project Execution Agency (PEA) contract. The contract mandates RVNL to oversee the execution of Balance Civil & HM works of Barrage Complex, including a portion of the HRT package for the Rammam Hydro Electric Project Stage-III (3×40 MW).
Under the terms of the contract, RVNL assumes responsibility for the execution of various tasks associated with the project, with an anticipated completion timeframe of 66 months. The project’s total worth is Rs 495,14,16,130.68 crore.
RVNL Share Price Skyrockets: A Tale of Growth and Success:
Rail Vikas Nigam Limited, headquartered in New Delhi, specializes in the construction of rail infrastructure projects nationwide. Established in 2003, the company actively engages in the development and implementation of diverse railway projects, encompassing new lines,
doubling, gauge conversion, railway electrification, metro projects, bridges, and institution buildings. Additionally, RVNL provides financial resource mobilization services to support its projects, catering to clients such as Indian Railways, central and state government ministries, departments, and public sector undertakings.
Financially, the state-owned company witnessed a significant boost in profit, registering a year-on-year increase of 33.2% to Rs 478.6 crore for the fourth quarter ending March 31, 2024, compared to Rs 359 crore in the corresponding quarter of the previous year (Q4FY23). RVNL’s revenue also experienced a notable upsurge, escalating by 17.4% to Rs 6,714 crore, as opposed to Rs 5,719.8 crore in Q4FY23. The Ebitda margin stood at 6.8% in Q4FY24.
Conclusion:
Furthermore, the board recommended a final dividend of Rs 2.11 per share for the financial year 2024, reflecting the company’s commitment to enhancing shareholder value and rewarding investors for their continued support.
Frequently Asked Questions FAQ:
- What is RVNL?
- Rail Vikas Nigam Limited (RVNL) is a government-owned company headquartered in New Delhi, India. It specializes in the construction of railway infrastructure projects across the country.
- When was RVNL established?
- RVNL was established in 2003.
- What kind of projects does RVNL undertake?
- RVNL is actively involved in various railway projects, including the construction of new lines, doubling of existing lines, gauge conversion, railway electrification, metro projects, bridges, and institution buildings.
- Who are RVNL’s clients?
- RVNL’s clients include Indian Railways, central and state government ministries, departments, and public sector undertakings.
- What recent achievements has RVNL made?
- RVNL recently secured a significant order worth Rs 495 crore from the National Thermal Power Corporation (NTPC) for the execution of the Balance Civil & HM works of Barrage Complex, including part of the HRT package for the Rammam Hydro Electric Project Stage-III (3×40 MW).
- How has RVNL’s financial performance been?
- In the fourth quarter ending March 31, 2024, RVNL witnessed a notable increase in profit, registering a year-on-year rise of 33.2% to Rs 478.6 crore. Its revenue also experienced significant growth, increasing by 17.4% to Rs 6,714 crore in the same period.
- What is the dividend recommendation for the financial year 2024?
- The board of RVNL has recommended a final dividend of Rs 2.11 per share for the financial year 2024.
- How can I invest in RVNL?
- RVNL is a government-owned company, and its shares are traded on the stock exchanges. Interested investors can purchase RVNL shares through a registered stockbroker or online trading platforms.
- Where can I find more information about RVNL?
- For more information about RVNL, including its projects, financials, and latest developments, you can visit the company’s official website or refer to relevant news sources and regulatory filings.
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