Shares of Rail Vikas Nigam Ltd. (RVNL) are trading flat after touching a day’s high of Rs 427.85 on 18th November, despite the firm announcing that it received the letter of acceptance from South Central Railway for a project worth Rs 294.94 crore.

RVNL has received an EPC contract for doubling the track between Navipet and Indalvai stations in Telangana, along with electrification and signalling works for the Mudkhed-Medchal doubling project.

This contract is expected to be completed in 24 months.

RVNL reported a significant decline in profit and a modest dip in revenue in its second-quarter results last week.

The firm’s net profit fell 27% to Rs 286.9 crore in Q2, compared to Rs 394.3 crore last year, due to lower operating margins and reduced earnings.

Revenue from operations dropped 1.2% YoY to Rs 4,855 crore, while EBITDA declined 9% to Rs 271.5 crore, with margins narrowing to 5.6%.

Earlier this month, RVNL’s joint venture with SCPL was the lowest bidder for an Eastern Railway project worth Rs 837.67 crore, involving various construction and earthworks. The project is to be completed in 36 months.

At 3:04 PM, the shares of RVNL were trading 0.72% lower at Rs 416.50 on NSE.

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