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State-owned Rail Vikas Nigam Ltd (RVNL) on Tuesday, December 3, announced it has received a letter of acceptance (LoA) from East Central Railway. The contract involves the “design, supply, erection, testing, and commissioning of traction substations with associated switching posts” as part of an upgrade to the electric traction system in the Gomoh-Patratu section of the Dhanbad division.
The project aims to enhance the existing electric traction system from 1X25 kV to a 2X25 kV AT feeding system. The contract, valued at ₹186.77 crore (inclusive of applicable taxes), is expected to be executed within 540 days. The initiative is part of the continued efforts to modernise railway infrastructure and improve operational efficiency across key routes.
The shares of the company ended marginally lower at ₹437 apiece on Tuesday.
Earlier on November 29, the state-owned company announced that it had emerged as the lowest bidder for a ₹642.57-crore power infrastructure project of Punjab State Power Corporation Ltd.
RVNL’s net profit fell 27% year-on-year (YoY) to ₹286.9 crore in the quarter ended September 2024, down from ₹394.3 crore in the same period last year, due to lower operating margins and reduced earnings. The revenue from operations declined by 1.2% YoY to ₹4,855 crore, compared to ₹4,914.3 crore a year ago. EBITDA dropped 9% to ₹271.5 crore, with margins narrowing to 5.6% from 6% in the year-ago period, indicating rising operational pressures.
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(Edited by : Shoma Bhattacharjee)
