RVNL bags ₹145-crore Southern Railway project

State-owned Rail Vikas Nigam Limited (RVNL) emerged as the lowest bidder (L1) for a key Southern Railway project on Monday (September 22). The project, aimed at supporting the Mission 3000MT loading target, is valued at ₹145.35 crore.

The contract covers the design, supply, erection, testing, and commissioning of traction substations (Scott-connected), including power quality compensating equipment, switching posts (SP/SSP), SCADA integration, and automatic fault locator (AFL) for the Jolarpettai junction-Salem junction (JTJ-SA) section of Salem division.

The contract is scheduled to be executed over 540 days.

West Central Railway contract

Earlier, on September 10, RVNL had emerged as the lowest bidder for a project awarded by West Central Railway. The contract, valued at ₹169.49 crore including taxes, involved the design, modification, supply, erection, testing, and commissioning of a 220/132kV/2x25 kV Scott-connected traction substation, switching posts with AT, and SCADA integration between the BINA and RTA sections of the Bhopal division.

Like the new project, it aims to meet a loading target of 3,000 MT. It is to be executed over 540 days, and was awarded under the normal course of business, with no related party involvement.

Q1 results

In its first quarter results, RVNL reported a 4.1% decline in revenue to ₹3,908 crore. EBITDA fell 71% year-on-year to ₹52 crore, with margins shrinking over 300 basis points to 1.4% from 4.5% in the same period last year.

Net profit also dropped 40%, from ₹224 crore to ₹134 crore, reflecting weaker operational performance.

Shares of Rail Vikas Nigam Ltd

ended lower on Monday (September 22) by 1.11% at ₹359.40 on the NSE.

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