RVNL record Order Book of Rs 65,000 Crore, Expands Overseas

RVNL, a public sector undertaking under the Ministry of Railways, has achieved a record order book of Rs 65,000 crore and is expanding its presence in foreign markets. The company, which is involved in project development, financing and implementation of rail infrastructure projects, has diversified its portfolio to include Vande Bharat trains, metro projects, electrification and transmission lines among others.

Railway Projects: 50% of Order Book

Of the total order book, 50 per cent are railway projects awarded by nomination from the Ministry of Railways. These include construction of new lines, doubling of existing lines, gauge conversion, railway electrification, metro projects and workshops. RVNL is also responsible for manufacturing and supplying 44 Vande Bharat trains to the Indian Railways at a cost of around Rs 9,000 crore.

Market Projects: 50% of Order Book of RVNL

The other 50 per cent of the order book are market projects that RVNL has secured through competitive bidding or joint ventures. These include projects in the power sector, such as transmission lines, substations and renewable energy. RVNL has also bagged projects in the urban transport sector, such as metro rail systems, monorail systems and bus rapid transit systems.

Foreign Projects: New Growth Avenue

RVNL is also looking for new projects in off-shore markets including Central Asia and UAE and Western Asia. The company has recently participated in a Public-Private Partnership (PPP) model project in Botswana, where it has been shortlisted. It has also set up offices in some other neighboring foreign countries. In Kyrgyzstan, it has signed an MoU for four projects and submitted the detailed project report (DPR) for two of them. It has also formed a joint venture company called Kyrgyzindustry RVNL Close Joint Stock Company.

Financial Performance: Q3 Results of RVNL

RVNL reported a net profit of Rs 358.6 crore for the quarter ended December 31, 2023, down 6.2 per cent from Rs 382.4 crore in the same quarter last year. Revenue declined 6.4 per cent to Rs 4,689.3 crore from Rs 5,012.1 crore in the year-ago period. EBITDA fell 9.6 per cent to Rs 249.1 crore from Rs 275.6 crore in the corresponding quarter last year. Margin contracted to 5.3 per cent from 5.5 per cent in Q3 FY23.

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