ANKUR TYAGI
New Delhi, September 22: State-owned Rail Vikas Nigam Limited (RVNL) has secured a major win by emerging as the lowest bidder (L1) for a key Southern Railway project. The contract, valued at ₹145.35 crore, is designed to support the Indian Railways’ ambitious Mission 3000MT loading target.
Project Details
The scope of work includes the design, supply, erection, testing, and commissioning of:
- Scott-connected traction substations with power quality compensating equipment
- Switching posts (SP/SSP)
- SCADA integration
- Automatic fault locator (AFL)
The project will be executed in the Jolarpettai Junction–Salem Junction (JTJ-SA) section of the Salem division and has a scheduled completion period of 540 days.
Recent Win in West Central Railway
This marks another achievement for RVNL, which had earlier, on September 10, emerged as the lowest bidder for a West Central Railway contract worth ₹169.49 crore (including taxes).
That project, covering the BINA–RTA section of the Bhopal division, involves the design, modification, supply, erection, testing, and commissioning of a 220/132kV/2×25 kV Scott-connected traction substation, switching posts with AT, and SCADA integration. It is also aligned with the Mission 3000MT loading target and is expected to be completed within 540 days.
RVNL Q1 Financial Performance
Despite these new project wins, RVNL’s latest financial results reflect a weak performance:
- Revenue: ₹3,908 crore (down 4.1% YoY)
- EBITDA: ₹52 crore (down 71% YoY)
- EBITDA Margin: 1.4% vs 4.5% last year
- Net Profit: ₹134 crore, a 40% decline from ₹224 crore
On September 22, shares of Rail Vikas Nigam Ltd closed 1.11% lower at ₹359.40 on the NSE.
👉 Key Takeaway: RVNL continues to strengthen its order book with significant railway electrification and infrastructure projects, even as its short-term financial performance remains under pressure.
Abhishek Sinha
