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RVNL rises after JV bags LoA for contract worth Rs 252 cr in Gujarat

2023-03-28

Rail Vikas Nigam (RVNL) rose 1.14% to Rs 65.40 after the company announced that the Rachana-RVNL joint venture (JV) had received the letter of acceptance (LOA) for a Rs 252.21 crore project in Gujarat.

The project scope includes the EPC upgrade to six lanes with a paved shoulder of the Sarkhej-Changodar Section of NH-SA (New NH-47) for the Ahmedabad-Bagodara-Rajkot road in Gujarat. (Package-7).

The project will cost Rs 252.21 crore. According to the agreement, Rachana Construction will own 60% of the project, while RVNL will own 40%.

The project is expected to take 30 months to complete.

Rail Vikas Nigam is in the business of completing all types of railway projects, such as new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, cable stayed bridge construction, institution buildings, and so on. The government owned 78.2% of the company as of December 31, 2022.

In Q3 FY23, the company reported a 30.5% increase in consolidated net profit to Rs 382.42 crore, up from Rs 293.01 crore in Q3 FY22. Revenue from operations fell slightly to Rs 5,012.09 crore in Q3 FY23, compared to Rs 5,049.24 crore in the same quarter last year.

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