Railway Infra Giant Scores Big! Rs 446 Crore Contract Boost

Rail Vikas Nigam Ltd (RVNL), founded in 2003 by the Indian government, is a significant contributor to railway infrastructure projects. With a robust profit growth of 20.30% CAGR over five years and a consistent dividend payout of 33%, RVNL maintains a strong position in the industry. As of March 31, 2023, its order book exceeds Rs 85,000 crores, focusing on railway, metro, and overseas projects.

RVNL recently secured notable contracts, including upgrading the electric traction system along a railway section from Kharagpur to Bhadrak, valued at approximately Rs 148.27 crore. Another contract involves upgrading the railway signalling system on the Champa-Saragaon-Baraduar-Sakti section, valued at around Rs 38.10 crore.

Additionally, RVNL secured bids as the lowest bidder (L1) for two projects: constructing six elevated metro stations in Nagpur and upgrading the signalling system along the Dhaulpur-Gwalior section. These projects highlight RVNL's continued expansion and commitment to enhancing rail infrastructure.

RVNL's financial performance remains strong, with net sales increasing by 17.4% and 8% in FY24 quarterly and annually, respectively. The Board recommended a final dividend of Rs 2.11 per share for FY23-24.

In March 2024, the President of India’s portfolio decreased their stake in RVNL. Despite this, RVNL boasts a market cap exceeding Rs 79,000 crore, with shares generating significant returns. Investors are encouraged to closely monitor RVNL as it continues to play a pivotal role in railway infrastructure development.

News by Rahul Yelligetti