Shares of Rail Vikas Nigam Ltd (RVNL) jumped around 3 percent in morning trade on September 5 after the company’s joint venture emerged as the lowest bidder for a railway project worth Rs 174 crore.
At 9.40 am, shares of the PSU were trading 2.88 percent up at Rs 158.85 on the BSE. In the previous session, RVNL hit its all-time high of Rs 163.45 after the company announced that it has bagged orders worth Rs 604.19 crore from the Madhya Gujarat Vij Company.
RVNL-MPCC JV has emerged as the Lowest Bidder (L1) for all civil engineering works (earthwork, blanketing, construction of station buildings etc) and complete track works, including gauge conversion work between Petlad - Bhadran (22.50 kms) of Vadodara Division of Western Railway.
The project cost is Rs 174.27 crore, the company said in a post-market hours filing on September 4.
RVNL holds 74 percent stake in the JV, while MPCC holds the remaining 26 percent.
Shares of RVNL are up 131 percent on YTS basis, while the 1-year return stands at over 380 percent.
In its results for the April-June quarter, the company reported a 20.06 percent year-on-year (YoY) rise in revenue from operations at Rs 5,572 crore. Net profit for the quarter increased 15.10 percent YoY to Rs 343 crore. The operating profit margins for the quarter remained flat at 6 percent.
Rail Vikas Nigam is a government-owned ‘Navaratna’ company engaged in railway infrastructure project execution activities, including track renewal, electrification, station modernisation, and bridge construction.
Source Link: RVNL spurts 3% after JV emerges as lowest bidder for Rs 174-cr railway project