Rail Vikas Nigam Limited (RVNL) witnessed a 5% surge in its share price on March 5, following the company’s announcement that it had received a Letter of Acceptance (LoA) from Himachal Pradesh State Electricity Board Limited (HPSEBL) for a Rs 729.8 crore project.
By 10:28 AM, RVNL’s shares were trading at Rs 342.30, reflecting a rise of Rs 16.15, or 4.95% on the Bombay Stock Exchange (BSE).
The project involves the development of distribution infrastructure in the Central Zone of Himachal Pradesh, under the revamped reforms-based and results-linked distribution sector scheme, aimed at reducing losses. The project is expected to be completed within 24 months.
This win comes on the heels of RVNL securing other key contracts. In February, the company emerged as the lowest bidder for an engineering, procurement, and construction (EPC) project for the South Western Railway, valued at a significant amount.
On February 18, RVNL also received an LoA for a joint venture project worth Rs 554 crore as part of the Bengaluru Suburban Rail Project in Karnataka.
However, the company recently reported a decline in its financial performance. RVNL’s net profit for Q3 FY25 stood at Rs 311 crore, marking a nearly 13% decrease from the Rs 359 crore profit reported in the same period last year.
Additionally, the company's revenue from operations dropped nearly 3% year-on-year to Rs 4,567 crore during Q3 FY25. Despite this, the latest project win has brought optimism to investors, reflected in the upward movement of the company’s share price.
