The shares of telecom infrastructure providers gained up to 1.1 percent after the company received a work order for installation, testing, and commissioning of MPLS VPN connectivity worth Rs 29.54 crore.
With a market capitalization of Rs 11,191.12, the shares of RailTel Corporation of India Ltd were trading at Rs 348.70 per share, decreasing around 0.30 percent as compared to the previous closing price of Rs 349.75 apiece.
According to the company filing, RailTel Corporation of India Ltd received a work order from the Center for Development of Telematics (C-DoT) for the installation, testing, and commissioning of MPLS VPN connectivity at 26 sites across india worth Rs 29.54 crore, The completion timeline for this order is 14 weeks from the date of purchase.
Looking at Railtel Corporation of India Ltd’s performance, revenue climbed by 1.2 percent, from Rs 429 crore in Q2FY23 to Rs 599 crore in Q2FY24. During the same period, net profit rose by 23%, from Rs 55 crore to Rs 68 crore.
RailTel invests in physical assets, including OFC, buildings, technology, and equipment, through capital expenditures. Capital expenditures of around 157.67 Cr are projected for FY 2023-2024.
RailTel intends to collaborate on the construction of a 30 MW data center in Noida. The DC partner might potentially invest roughly Rs.1500 crore.
The company has the potential to make Rs.150 crore by hosting and deploying NIC’s e-office for Central and State government ministries and departments. It serves about 2.5 lakh users across 80+ customers.
The stock gained 181.53 percent in six months and 184.28 percent in a year. Investing Rs 1 lakh in the company yields Rs 2.84 lakh in annual returns.
RailTel is expanding its network to reach over a million communities within five kilometers of its point of presence. So far, around 16,000 settlements have been linked. RailTel’s network passes through around 5,000 stations across the country, covering all major commercial centers.
RailTel is working to build a countrywide broadband, telecom, and multimedia network, as well as modernize Indian Railways’ train control and safety systems.
Written by:- Abhishek Singh
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