The shares of Rail Vikas Nigam Ltd crashed 20% on 4 June despite the company announced receiving Rs 440 crore order from South Central Railway. 

As per the company filing, Rail Vikas Nigam Ltd has received a letter of acceptance for the Engineering, Procurement, and Construction (EPC) tender for the proposed “Doubling of Track between Ankai station (Excluding) at KM 16.00 (Ch: 16000) & Karanjgaon stations (Excluding) at Km 69.01 (Ch:69010) (i.e. 53.01 Km) including Electrification and Signalling works in connection with Aurangabad-Ankai Doubling Project in Nanded Division of South-Central Railway.”

Furthermore, this order is for South Central Railway, a domestic company that received it; therefore, it needs to be completed within 30 months of the date of receipt. 

Examining its financial performance going ahead reveals that the company’s net profit increased by 25% year-on-year from Rs 345 crore to Rs 433 crore during the same period, despite revenue growing by 17% from Rs 5,721 crore in Q4FY23 to Rs 6,701 crore in Q4FY24.

The company has an order book of Rs 65,000 crore, with railway projects accounting for 50% of the total, while the remaining comes from the market. RVNL intends to maintain an order book valued at around Rs 75000 crore in the future. 

Rail Vikas Nigam Limited (RVNL) received significant orders in 2024. These orders covered railway infrastructure for the Western and South Eastern Railways, metro projects in Madhya Pradesh and Chennai, and distribution infrastructure in Himachal Pradesh. RVNL has obtained orders for sets of the Gujarat Metro and Vande Bharat Train.

At 1:49 pm, the shares of Rail Vikas Nigam were trading 6.86% lower at Rs 376.80 on NSE.