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The consortium had emerged as the lowest bidder for this project, valued at approximately ₹13,253 crore. The contract spans a three-year construction period, followed by a ten-year maintenance phase. The maintenance fee is set at 5.5% of the capital expenditure annually for the first five years and 6.5% annually for the subsequent five years.
The initiative is part of the ongoing expansion of BharatNet, which aims to provide high-speed internet to rural and remote areas, thereby supporting the Digital India mission. The successful implementation of this project is expected to significantly enhance broadband access, fostering economic development and digital inclusion in underserved regions.
Rail Vikas Nigam Q3 results and RVNL share price
Meanwhile, the mini-ratna firm has reported a 13.1% year-on-year (YoY) decline in net profit, which stood at ₹311.6 crore for the third quarter ended December 31, 2024. This dip in profitability comes despite a relatively stable EBITDA margin.Revenue for the quarter fell by 2.6% YoY, reaching ₹4,567.4 crore. On the operational front, EBITDA (earnings before interest, tax, depreciation, and amortisation) showed a 3.9% decline, amounting to ₹239.4 crore in Q3FY25. The EBITDA margin remained largely flat at 5.2%, reflecting steady operational efficiency amidst a challenging quarter.
Despite the decline in profit and revenue, RVNL has maintained its revenue guidance for the fiscal year 2024-25 (FY25) at ₹22,000 crore, signaling confidence in achieving its financial targets.
RVNL share price settled 0.85% higher on the NSE at close, quoting at ₹380.05 apiece. So far this year, the state-owned rail stock has corrected more than 11%, but the one-year return on Rail Vikas scrip is over 42%.
About Rail Vikas Nigam Ltd
RVNL is a Navratna CPSE under the Ministry of Railways, Government of India. Established in 2003, RVNL’s primary focus is on developing new rail infrastructure, upgrading existing lines, and electrifying railway tracks. It operates as a separate business entity, with its own board of directors and management structure. RVNL has successfully implemented several large-scale projects, including the Patna-Mughalsarai section doubling and the Lucknow-Kanpur high-speed rail corridor.
