Rail Vikas Nigam Ltd (RVNL), a part of the Ministry of Railways, is engaged in the development, financing, and implementation of projects related to railway infrastructure.
Shares of Rail Vikas Nigam Ltd (RVNL) surged by 12 percent on February 19 after the company announced that its order book had reached Rs 65,000 crore. The state-owned company revealed plans to explore projects in offshore markets, including Central Asia, the UAE, and Western Asia, during an investor call.
“We currently have an order book of around Rs 65,000 crore, with approximately 50 percent coming from railway projects through nomination and the remaining 50 percent from the market. Going forward, we aim to maintain an order book of around Rs 75,000 crore,” stated top management officials in response to inquiries.
As of 10:51 am, RVNL shares were trading 10 percent higher at Rs 277.35 on the NSE. Over the past year, the stock has surged by over 300 percent, significantly outperforming the benchmark Nifty 50, which rose by 23 percent during the same period.
Out of the total order book, approximately Rs 9,000 crore is attributed to the Vande Bharat trains, while Rs 7,000 crore is allocated for various Metro projects. Additionally, the company has secured contracts for projects in electrification and transmission lines, among others. RVNL is also expanding its scope to other segments and exploring numerous projects in foreign countries, according to company officials.
Regarding its growth plans in offshore markets, RVNL management stated that the company recently participated in a Public-Private Partnership (PPP) model project in Botswana, where it has been shortlisted. Offices are also being established in some other neighboring foreign countries.
“In the UAE, we are actively exploring opportunities in Central Asia and Western Asia. We aim to achieve profitability that aligns with our performance in other areas,” the management added.
RVNL has secured a deal for four projects in Kyrgyzstan and has submitted the detailed project report (DPR) for the Balekechi and Kara catch line. “We have established a company named Kyrgyzindustry RVNL Close Joint Stock Company,” the company stated.
RVNL, a part of the Ministry of Railways, is involved in the development, financing, and implementation of projects related to railway infrastructure.
For the quarter ended December 2023, RVNL’s net profit declined by 6.2 percent year-on-year to Rs 359 crore due to weak topline and operating performance. However, revenue from operations increased by 6.4 percent year-on-year to Rs 4,689.3 crore for the quarter.
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