RVNL zooms 12% on Rs 65,000-crore order book, offshore growth plans

Shares of Rail Vikas Nigam Ltd (RVNL) zoomed 12 percent on February 19 after the company said its order book had touched Rs 65,000 crore. The state-run company is looking out for projects in off-shore markets, including Central Asia and the UAE and Western Asia, it said in an investors call.

“We have got an order book of around Rs 65,000 crore, which roughly constitutes 50 percent from the nomination, that is the typical railway projects, and 50 percent from the market. In time to come, we should maintain an order book of around Rs 75,000 crore,” top management officials said in reply to a question.

At 10:51am, RVNL shares were trading 10 percent higher at Rs 277.35 on the NSE. In the last one year, the multibagger stock has rallied over 300 percent, massively outperforming the benchmark Nifty 50 which has risen 23 percent during this period.

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Out of the total order book, the share of the Vande Bharat trains was around Rs 9,000 crore, and Rs 7,000 crore was for several Metro projects. The company has also bagged projects in the electrification and transmission lines among others. RVNL is also diversifying to other segments and eyeing many projects in foreign countries, they said.

On its growth plans in offshore markets, RVNL management said the company recently participated in a Public-Private Partnership (PPP) model project in Botswana, where it has been shortlisted. Offices are being set up in some other neighboring foreign countries as well.

“In the UAE, we have been actively looking at the markets in Central Asia and the UAE and Western Asia. So, we should be able to manage a profit which will commensurate with our performances in other fields,” it said.

RVNL has signed a deal for four projects in Kyrgyzstan, and it has submitted the detailed project report (DPR) for the Balekechi and Kara catch line. “We have formed a company called Kyrgyzindustry RVNL Close Joint Stock Company,” it said.

RVNL, under the Ministry of Railways, ​is involved in the project development, financing and implementation of projects related to rail infrastructure.

Also Read | RVNL Q3 Results: Net profit falls 6.2% to Rs 358.6 cr, revenue down 6.4% at Rs 4,689.3 cr

For the quarter ended December 2023, its net profit fell 6.2 percent YoY to Rs 359 crore on the back of a weak topline and operating performance. Revenue from operations, however, increased 6.4 percent YoY to Rs 4,689.3 crore for the quarter.

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