Shares of Rail Vikas Nigam Ltd (RVNL) fell 2.5% after touching the day’s high of Rs 393 on 21st February, despite the company announcing its collaboration with HFCL Ltd and Aerial Telecom Solutions Pvt. Ltd to sign a Project Implementation Agency (PIA) agreement with Bharat Sanchar Nigam Ltd (BSNL).
The partnership focuses on developing, upgrading, operating, and maintaining the middle-mile network of BharatNet to boost broadband connectivity across India.
The consortium won the project as the lowest bidder, valued at around Rs 13,253 crore, with a three-year construction period and a ten-year maintenance phase.
The maintenance fee is set at 5.5% of capital expenditure annually for the first five years and 6.5% for the next five years.
BharatNet’s expansion aims to bring high-speed internet to rural and remote areas, supporting the Digital India mission and economic growth.
RVNL reported a 13.1% YoY decline in net profit to Rs 311.6 crore for Q3FY25 despite a stable EBITDA margin.
Revenue fell 2.6% YoY to Rs 4,567.4 crore, while EBITDA dropped 3.9% to Rs 239.4 crore, but the company maintained its FY25 revenue guidance at Rs 22,000 crore.
At 11:20 AM, the shares of RVNL were trading 2% lower at Rs 373.90 on NSE.
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