Shares of this smallcap company fell around 1 percent in Wednesday’s trading session despite receiving an order worth Rs. 17.21 crores from Defence Research And Development Organisation. The shares have delivered a muti-bagger return of 258 percent to its shareholders in one year.
With a market capitalization of Rs. 13,781 crores, the shares of Railtel Corporation of India Ltd started Wednesday’s trading session on a flatter note at Rs. 434.60 compared to its previous close of Rs. 433. During the trading session, the shares hit a low of Rs. 419.10, losing around 1 percent and are currently trading at Rs. 429 apiece.
According to the exchange filing, the company received the work order from the Defence Research And Development Organisation (DRDO) for hiring IT resources for managing and sustaining IT services amounting to over Rs. 17.21 crores for a period of three years.
Looking at the company’s financial statements, the revenue zoomed by 25 percent from Rs. 668.36 crores during the December quarter to Rs. 832.7 crores in the March quarter. In addition, the net profits increased by 24 percent from Rs. 62.14 crores to Rs. 77.53 crores during the same period.
As per the latest data, the company has a robust order book of more than Rs. 4,800 crores, where more than Rs. 2,000 crores of new orders were received during the current year and is expecting an order inflow to be in the range of Rs. 4,000 to 5,000 crores next year. Furthermore, the company’s current year Capital expenditure was around Rs. 180 crores.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 11.45 percent during FY 22-23 to 13.47 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 14.21 percent to 18.43 percent during the same timeframe. The net profit margin also increased from 9.62 percent during FY22-23 to 9.58 percent during FY23-24.
Railtel Corporation offers various services, including telepresence services, data centre services, MPLS-VPN, Internet leased lines, consultancy services, signalling services, and Aadhaar-based services.
RailTel’s network passes through around 5,000 stations across the country, covering all major commercial centres and has also been involved in providing free WiFi access at selected railway stations in collaboration with Google.
Headquartered in New Delhi, Railtel Corporation was incorporated in 2000. The company was formed to create a nationwide broadband, telecom, and multimedia network and modernize the train control operation and safety system of Indian Railways.
Written By Vaibhav Patil
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