Shares of Rail Vikas Nigam Limited (RVNL) were trading in the green and 1% higher on Wednesday, 10 September, after the company announced that it had emerged as the lowest bidder (L1) for a significant project given by West Central Railway.

The Rs 169.49 crore contract includes design, modification, supply, erection, testing, and commissioning of a 220/132kV/2×25 kV Scott-connected traction substation and switching posts with AT, as well as SCADA integration between the BINA and RTA sections of the Bhopal division.

The project is scheduled to last 540 days and seeks to load 3,000 MT.  It is being awarded in the normal course of business and does not constitute related party activities.

The railway PSU recorded a 4.1% decrease in revenue to Rs 3,908 crore and a 71% decrease in earnings before interest, tax, depreciation, and amortisation (EBITDA) to Rs 52 crore compared to the same time last year.

The EBITDA margin fell by more than 300 basis points in the quarter, to 1.4% from 4.5% previously. The net profit for the period decreased by 40% from the same quarter last year to Rs 134 crore from Rs 224 crore.

When the numbers were compared sequentially, they deteriorated much further. Revenue fell 35% from the March quarter, profitability plunged 71%, and margins fell by more than 500 basis points. 

At 1:15 pm, the shares of Rail Vikas Nigam were trading 0.03% higher at Rs 333.55 on NSE.

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