The shares of this neutral telecom infrastructure provider gained up to 5 percent after the company received the work order for data center Hosting and application support services amounting to Rs. 35.08 crores.
With a market capitalization of Rs 11,664.51 crores, the shares of Railtel Corporation of India Ltd were trading at Rs 364.60 per share, increasing around 3.04 percent compared to the previous closing price of Rs 353.85 per share.
Railtel Corporation of India Ltd received a work order for data center hosting and application support services worth Rs. 35.08 crores from Rail Vikas Nigam Ltd, according to a corporate filing. The order must be executed before or on February 28, 2027.
Looking at the performance of Railtel Corporation of India Ltd, revenue climbed by 1.2 percent from Rs 429 Crore in Q2FY23 to Rs 599 Crore in Q2FY24. Net profit climbed by 23 percent within the same period, from Rs 55 crore to Rs 68 crore.
RailTel periodically engages in capital expenditures (capex) to buy, maintain, and update physical assets such as OFC, buildings, technology, and equipment. Capital expenditures of around 157.67 Cr are projected for FY 2023-2024.
RailTel is planning to create a 30 MW Data Centre at its Noida plot under a partnership model. This will be an investment opportunity of approx Rs.1500 cr for the DC partner.
The business has an opportunity to host and implement NIC’s e-office for Central and State government ministries and departments for approximately 2.5 lac users across 80 plus customers with a business potential of Rs.150 crore.
The corporation is expanding RailTel’s networks in over one lac communities that are only five kilometers from RailTel’s POP. So far, almost 16,000 settlements have been linked.
The stock gave an 181.53 percent return in six months and an 184.28 percent return in a year. If an investor invests Rs 1 lakh in the company would be worth Rs 2.84 Lakh in a year.
RailTel develops statewide broadband and VPN services, as well as telecom and multimedia networks, in order to improve Indian Railways’ train control operation and safety system.
Written by:- Abhishek Singh
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