Kernex Microsystems Bags Rs 21 Cr Kavach Upgrade Deal 🚂

Hey there, finance enthusiasts! 👋 Let’s dive into some exciting news from the railway tech space. Kernex Microsystems (India) Limited (KERNEX) has just announced a significant win that’s sure to get attention.

The company, as part of the KERNEX-VRRC Joint Venture, has bagged a Letter of Acceptance (LOA) from the South Central Railways, Secunderabad. This isn’t just any contract; it’s for a crucial project: the Upgradation of Kavach Version 3.2 to 4.0 across a key section of the South Central Railway network, specifically from Sadashivpet Road (Excluding) to Parbhani (Excluding), covering Bidar and Parli Vaijnath.

For those unfamiliar, Kavach is India’s indigenous Automatic Train Protection (ATP) system, designed to enhance railway safety by preventing collisions and over-speeding. It’s a game-changer for the Indian railway network, and Kernex’s involvement in its upgrade is a testament to its expertise in this vital sector.

So, what’s the deal worth? The accepted bid cost for this project stands at a solid Rs. 21.03 Crores, inclusive of 18% GST. That’s a substantial sum! The project is slated for completion within 24 months from the date of the LOA, indicating a focused timeline for execution.

This domestic order highlights Kernex’s continued contribution to modernizing India’s railway infrastructure. It’s worth noting that at the time of this announcement, Kernex shares were trading around Rs 1055.5, reflecting a slight dip of 2.7%. However, such order wins often lay the groundwork for future growth and demonstrate a company’s operational strength.

Keep an eye on Kernex as they embark on this important project, contributing to a safer and more efficient railway system for India! 🚆

source: Corporate Announcement

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