Why RVNL Shares Are Flying 7% Today

RVNL‘s share price continued to rocket at the bourses on Tuesday going up over 7% to hit an intraday high of ₹322.70.

What Happened: Shares of the railway major have been upbeat after the company posted its results for the quarter ended March. The rail infra company also announced receiving a letter of acceptance from a South Eastern Railway for a ₹148 crore order.

The company won the bid for this order in March. The order is for the upgradation of the electric traction system from a 1×25 KV to a 2×25 KV traction system on the Kharagpur-Bhadrak section of the South Eastern Railway. This upgrade aims to support a loading target of 3,000 MT and requires completion within 18 months.

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The company's net profit for the quarter came in at ₹478.40 crore, marking an increase of around 33% from ₹359.25 crore in the same quarter last year. Revenue from operations for the March quarter stood at ₹6,714 crore, up around 17% from ₹5,720 crore posted in the corresponding quarter of the previous year. The order book stands at a massive ₹85,000 crore.

The developments have helped the stock extend its gaining streak to the sixth straight session.

Price Action: RVNL’s share price was up 6.77% to trade at ₹321 in the early hours of trading on Tuesday.

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