Introduction:
RVNL shares soared today, marking a significant 3.13% increase to reach an intraday high of Rs 385.50 per share. This surge follows a series of substantial order wins announced after market hours on June 10th.
In a recent exchange filing, Rail Vikas Nigam Limited (RVNL) revealed that a consortium with Siemens secured a Letter of Acceptance from Bangalore Metro Rail Corporation Ltd. The project, valued at Rs 394.2 crore, involves comprehensive engineering, supply,
erection, testing, and commissioning services for Phase-2A & Phase 2 B, including 33 KV distribution and 750V DC third rail traction electrification, along with necessary substations and SCADA systems. Siemens holds a 70% share in this endeavor, with RVNL owning the remaining 30%.
Unlocking the Success Story: Understanding RVNL’s Remarkable Share Price Surge:
Additionally, RVNL emerged as the Lowest Bidder (L1) for a project worth Rs 138.45 crore from Central Railway. This project entails the modification of the Overhead Equipment (OHE) to upgrade the existing
1 x 25 kV Electric Traction System to a 2 x 25 kV AT Feeding System in the Amla-Nagpur Section of the Nagpur division. The completion timeline for this project is estimated at 24 months.
From a financial standpoint, RVNL has shown robust performance. In the March quarter of financial year 2024 (Q4FY24), the company recorded a notable 33.2% year-on-year rise in net profit, totaling Rs 478.6 crore compared to Rs 359 crore in Q4FY23.
Revenue from operations also witnessed a substantial increase of 17.4%, reaching Rs 6,714 crore in Q4FY24, up from Rs 5,719.8 crore in the corresponding period last year.
Conclusion:
Moreover, RVNL’s earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 21.8% to Rs 456.4 crore in Q4FY24, with an EBITDA margin of 6.8%, slightly up from 6.6% in Q4FY23. The board has recommended a final dividend of Rs 2.11 per share for FY24.
As of now, RVNL’s market capitalization stands at Rs 80,023.07 crore according to the Bombay Stock Exchange (BSE). At 9:28 AM, RVNL shares were trading 2.61% higher at Rs 383.55, while the BSE Sensex was up by 0.06% at 76,535.51 levels.
Frequently Asked Questions:
- Why did RVNL share price surge recently?
- RVNL’s share price surged due to multiple order wins announced by the company, including significant projects with Bangalore Metro Rail Corporation Ltd and Central Railway.
- What are the key projects contributing to RVNL’s share price surge?
- The notable projects include the engineering, supply, erection, testing, and commissioning services for Phase-2A & Phase 2 B with Bangalore Metro Rail Corporation Ltd and the OHE modification project with Central Railway.
- What is the financial performance of RVNL in recent quarters?
- RVNL has showcased strong financial performance, with a significant year-on-year rise in net profit, revenue from operations, and EBITDA in the March quarter of financial year 2024.
- What is the dividend recommendation by RVNL’s board for FY24?
- The board has recommended a final dividend of Rs 2.11 per share for the financial year 2024.
- What is the current market capitalization of RVNL?
- As per the Bombay Stock Exchange (BSE), the market capitalization of RVNL is Rs 80,023.07 crore.
- How are RVNL shares performing compared to the overall market?
- At the time of the latest update, RVNL shares were trading 2.61% higher, while the BSE Sensex was up by 0.06%.
- What is the completion timeline for the recent projects secured by RVNL?
- The project with Bangalore Metro Rail Corporation Ltd is slated for completion within 130 weeks, while the project with Central Railway is anticipated to be completed within 24 months.
- Who are the key stakeholders involved in RVNL’s recent projects?
- Siemens Ltd holds a 70% share in the project with Bangalore Metro Rail Corporation Ltd, while RVNL owns the remaining 30%.
- Where can I find more information about RVNL’s recent developments and financial performance?
- For detailed information, you can refer to RVNL’s official announcements, exchange filings, and financial reports available on their website or through financial news sources.
- How can investors stay updated on RVNL’s future developments?
- Investors can stay updated by following RVNL’s official communications, monitoring stock market updates, and seeking insights from financial analysts and experts.
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