RVNL Secures ₹135.66 Crore EPC Contract for Bhusaval-Khandwa Section

27 Feb 2025 , 10:37 PM

Rail Vikas Nigam Ltd (RVNL), a public sector company, has awarded a Letter of Acceptance (LoA) from Central Railway for a contract amount of ₹135.66 crore. The contract is for the design, supply, erection, testing, and commissioning of 132/55 KV traction substations, sectioning posts (SPs), and sub-sectioning posts (SSPs) in the Bhusaval-Khandwa of the Central Railway. This will be done in EPC mode to aid the railway section in achieving that 3,000 MT loading target.

The contract includes the installation of 2 x 25 KV traction system with Scott Connected Transformers for better railway electrification efficiency. The project is anticipated to be completed within a period of 24 months, fortifying the railway’s power infrastructure.

RVNL registered a net profit of ₹311.6 crore for the quarter ending December 31, 2024, a 13.1% year-on-year (YoY) decline from ₹358.6 crore in the same period of FY24. The company reported a 2.6% YoY drop in revenue, with ₹4,567.4 crore in revenue during the quarter compared to ₹4,689.3 crore in the year-ago quarter.

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) in Q3 FY25 was down 3.9% YoY to ₹239.4 crore from ₹249 crore in Q3 FY24. EBITDA margin was stable at 5.2% in the quarter, compared to 5.3% in the corresponding quarter of last year.

The recent project award highlights the role of RVNL in strengthening railway infrastructure while its financial performance is driven by short-term revenue challenges in the current fiscal.