Shares of Railtel Corporation are trading at Rs 105.30 after gaining around 0.50 percent as compared to the previous closing price of Rs 104.85. This week, the stock has been able to gain around 7 percent.
According to the filing over BSE, the company made an announcement regarding the receipt of a couple of work orders from Bihar State Electronics Development Corporation Ltd. and National Informatics Centre Services aggregating to around Rs 115 crores.
Firstly, the order from Bihar State Electronics Development Corporation Ltd. is pertaining to the Implementation and Management of Electronic Knowledge Networks in the Academic/Administrative buildings of Government Engineering Colleges and Polytechnic Institutes under the Department of Science & Technology, Govt. of Bihar. The total value of the work order is Rs. 76.10 Crores.
Secondly, the order from National Informatics Centre Services is for the Installation, Testing, and Commissioning of 4 Mbps Lease line connectivity for 19 sites amounting to Rs. 38.95 Crores.
RailTel, incorporated on September 26, 2000, is an ICT provider and one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network.
Presently, the optic fiber network of the company covers over 61000+ route kilometers and covers 6108+ railway stations across the country. It also provides various passenger services including content on-demand services and Wi-Fi across major railway stations in India.
Digging into the financials of the company, the revenues and net profits have represented a contrasting pattern as far as the numbers are concerned. Revenues moved from Rs 429 crores in Q2 to Rs 454 crores in Q3. On the other hand, the net profit figures shifted down from Rs 55 crores in Q2 to Rs 32 crores in Q3.
Exhibiting a positive scenario, the return ratios and margins of the company looks to be decent with improvements on a YoY basis. ROE increased from 10.24 percent in FY20-21 to 14.22 percent in FY21-22. Moreover, the ROCE improved from 14.65 percent in FY20-21 to 19.7 percent in FY21-22.
Having a say on the margins, the net profit margin of the company increased from 10.34 percent in FY20-21 to 13.49 percent in FY21-22.
Written by Amit Madnani
