"RVNL Surges on Securing Record Rs 138-Cr LoA from Central Railway"

Rail Vikas Nigam Limited (RVNL) witnessed a 4.33% surge in its stock price, reaching Rs 637, following the company's receipt of a significant Letter of Acceptance (LoA) from Central Railway valued at Rs 138.45 crore.

The LoA encompasses the modification of Overhead Equipment (OHE) to upgrade the existing 1 x 25 kV Electric Traction System to a 2 x 25 kV AT feeding system in the Amla-Nagpur section of Nagpur division under Central Railway. This upgrade aims to meet the 3000 MT loading target. The project is slated for completion within 24 months, with the total project cost set at Rs 138.45 crore.

RVNL, known for executing various railway projects such as new lines, doubling, gauge conversion, electrification, metro projects, and bridges, reported a robust financial performance in Q4 FY24. The company recorded a consolidated net profit increase of 33.16%, amounting to Rs 478.40 crore, driven by a 17.38% rise in revenue from operations, reaching Rs 6,714.01 crore compared to Q4 FY23.

Buoyed by the LoA news, RVNL's stock soared to an all-time high of Rs 643.95 during today's intra-day session, reflecting investor optimism in the company's growth trajectory and project execution capabilities.

BS