Shares of Rail Vikas Nigam Ltd (RVNL) surged by 12 percent on February 19, propelled by the announcement that its order book had reached Rs 65,000 crore. The state-run company disclosed its intentions to explore opportunities in offshore markets, particularly in Central Asia, the UAE, and Western Asia.
During an investors call, top management officials revealed, “We have a robust order book of approximately Rs 65,000 crore, with roughly 50 percent derived from nomination projects and the remainder from the market. We anticipate maintaining an order book of around Rs 75,000 crore in the foreseeable future.”
By 11:24 am, RVNL shares were trading 8.38 percent higher at Rs 272.80 on the NSE. Over the past year, the stock has demonstrated remarkable growth, surging over 300 percent, significantly outperforming the Nifty 50 index, which recorded a 23 percent increase during the same period.
A significant portion of RVNL’s order book includes projects related to Vande Bharat trains amounting to around Rs 9,000 crore, along with Rs 7,000 crore allocated for various Metro projects. The company has also secured contracts in electrification, transmission lines, and other segments, demonstrating its diversification efforts.
Regarding its expansion into offshore markets, RVNL management stated their involvement in a Public-Private Partnership (PPP) project in Botswana and the establishment of offices in neighboring countries. The company is actively exploring opportunities in Central Asia, the UAE, and Western Asia.
Additionally, RVNL has signed agreements for projects in Kyrgyzstan and is progressing with the detailed project report (DPR) for the Balekechi and Kara catch line. The establishment of Kyrgyzindustry RVNL Close Joint Stock Company underscores the company’s commitment to overseas ventures.
RVNL, operating under the Ministry of Railways, plays a pivotal role in project development, financing, and implementation of rail infrastructure projects.
In its financial results for the quarter ended December 2023, RVNL reported a 6.2 percent year-on-year decline in net profit to Rs 359 crore, attributed to subdued topline and operating performance. However, revenue from operations witnessed a 6.4 percent year-on-year increase, reaching Rs 4,689.3 crore for the quarter.
