Shares of this Navratna PSU, which specialises in nationwide broadband, VPN services, and telecom networks for Indian Railways, has received an order worth Rs.144 crore from Gujarat Government for the supply, installation, commissioning, and operation maintenance of CCTV video surveillance systems across various locations.
Price Movement
With a market capitalization of Rs.13,211 crore, share price of Railtel Corporation of India Ltd reached an intraday high of Rs.420.55 per share, rising 6 percent from its previous close of Rs.396.70 each. The share price has adjusted since then and is currently trading at Rs.412.85 each.
Reason for the Rise
Railtel Corporation of India Ltd has been awarded a contract by the Home Department of the Government of Gujarat for the supply, installation, commissioning, and operation maintenance of CCTV video surveillance systems at various branches, LCB SoG cyber police stations, and LIB and police stations across Clusters 1, 2, and 3.
This domestic project has a contract value of Rs.144,88,48,888 and is set to be executed by May 21, 2025.
Order Book
As of June 2024, the company reported an order book of Rs.4,682 crore. For FY25, it expects to secure Rs.4,000–5,000 crore in new orders from tenders issued by Indian Railways, state governments, and various sectors. Furthermore, projected orders from the KAVACH project, valued between Rs.5,000 crore and Rs.7,000 crore, are anticipated to significantly boost the order book.
Reputed Clientele
The company has a prestigious client portfolio that includes notable names such as the Ministry of Railways, Indian Air Force, DRDO, Coal India, ONGC, HP, SAIL, IRFC, SBI, Amazon, Google, Airtel, and several others.
Management Guidance
RailTel aims for a 30 percent revenue growth in FY25, following a strong 31 percent growth in FY24. The revenue increase will be fueled by telecom services, projected to grow by 9 to 10 percent, while project revenues are expected to contribute around Rs.2,000 crore.
Financial Overview
In its latest financial update, the company reported net sales of Rs.558 crore for Q1 FY25, reflecting a 20 percent increase from Rs.468 crore in Q1 FY24. Moreover, net profits surged 29 percent to Rs.49 crore in Q1 FY25, compared to Rs.38 crore in Q1 FY24.
Company Profile
RailTel Corporation of India Ltd. is a Navratna public sector undertaking (PSU) specialises in providing information and communication technology (ICT) services and is one of the largest neutral telecom infrastructure providers in India.
RailTel operates a Pan-India optical fibre network that spans over 61,000 route kilometres, covering more than 6,100 railway stations and reaching approximately 70 percent of India’s population
Written by – Siddesh S Raskar
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