RVNL grabs LoA from Southern Railway for Redevelopment Project worth Rs.439.95cr

Rail Vikas Nigam Ltd (RVNL) was informed by Southern Railway that they have accepted the proposal for the "Redevelopment of Thiruvananthapuram Central Railway Station on Engineering, Procurement and Construction (EPC) mode." This information was shared by the state-owned public sector enterprise on Monday, April 29.

The total expenditure for the project amounts to Rs.439.95 crore. RVNL holds a 49% stake in the joint venture, with partner Kerala Rail Development Corporation Ltd (KRDCL) owning the remaining 51% stake. According to a previous filing with the stock exchange, the project is scheduled to be completed within 42 months.

RVNL has also notified the stock exchanges that the Company's Board of Directors will convene on May 15 to review and endorse the audited financial results (both standalone and consolidated) for the fourth quarter (Q4) and fiscal year ending on March 31, 2024.  

Additionally, the Board will deliberate on and propose the final dividend, if applicable, for FY2023-24, pending approval from shareholders at the Annual General Meeting (AGM).

Previously, the rail Public Sector Undertaking (PSU) announced that it had secured the position of the most cost-effective bidder for a significant project in the Southern Railway, valued at Rs.239 crore. This project involves the implementation of an automatic block signalling (ABS) system along the stretch connecting Jolarpettai junction to Erode junction within the Salem division of the Southern Railway.

In the October-December quarter, RVNL witnessed a 6.2% decline in its net profit compared to the same period last year, amounting to Rs.358.6 crore. In the corresponding quarter of the previous year, RVNL recorded a net profit of Rs.382.4 crore. Additionally, RVNL's revenue from operations experienced a 6.4% dip, reaching Rs.4,689.3 crore, in contrast to Rs.275.6 crore in the corresponding period of the previous fiscal year.

The BSE witnessed RVNL shares closing at Rs.288.80, experiencing a slight decline. Throughout this year, RVNL shares have achieved a remarkable growth of over 58%, with the stock's one-year return standing at an impressive 144%.