RVNL emerges lowest bidder for ₹169.5-crore West Central Railway project

State-owned Rail Vikas Nigam Limited (RVNL) on Wednesday, September 10, said it has emerged as the lowest bidder (L1) for a major project awarded by West Central Railway.

The contract, valued at ₹169.49 crore including applicable taxes, covers the design, modification, supply, erection, testing and commissioning of a 220/132kV/2x25 kV Scott-connected traction substation and switching posts with AT, along with SCADA integration between the BINA and RTA sections of the Bhopal division.

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The project aims to meet a loading target of 3,000 MT and is to be executed over a period of 540 days. It is being awarded under the normal course of business and does not fall under related party transactions.

First quarter results

The railway PSU reported a 4.1% decline in its revenue for the quarter to ₹3,908 crore, while its earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter saw a drop of 71% from the year-ago period to ₹52 crore.

EBITDA margin for the quarter deteriorated by over 300 basis points, declining to only 1.4% from 4.5% earlier. Net profit for the period declined by 40% from the same quarter last year to ₹134 crore from ₹224 crore.

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The numbers saw further deterioration when compared on a sequential basis. Revenue was down 35% from the March quarter, profitability dropped 71%, and margins saw a decline of over 500 basis points. EBITDA on a quarter-on-quarter basisfelln nearly 90%.

Shares of Rail Vikas Nigam Ltd ended at ₹333, up by ₹0.65 or 0.20%, on the BSE today (September 10).