The shares of one of the largest neutral telecom infrastructure providers gained up to 3 percent after the company received the work order from South Central Railway for Works amounting to Rs. 82.41 crore.
With a market capitalization of Rs 11,577.85 crores, the shares of Railtel Corporation of India Ltd were trading at Rs 360.75 per share, decreasing around 0.69 percent as compared to the previous closing price of Rs 363.00 apiece.
According to the company filing, Railtel Corporation of India Ltd received the work order from South Central Railway for Comprehensive Ground Infrastructure Works for Provision of 4G LTE-R in 523 RKM of Secunderabad Division in South Central Railway amounting to Rs. 82.41 crore.
Railtel Corporation of India Ltd’s revenue rose by 1.2 percent, from Rs 429 crore in Q2FY23 to Rs 599 crore in Q2FY24. During the same period, net profit grew by 23 percent, 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 crore are projected for FY 2023-2024.
RailTel aims to collaborate on the development of a 30-megawatt data center in Noida. The DC partner might invest around Rs.1500 crore.
The firm has the potential to generate Rs.150 crore by hosting and installing NIC’s e-office for Central and State government ministries and departments. It supports around 2.5 lakh people across 80 plus customers.
The stock rose 156.90 percent in six months and 179.03 percent in a year. Investing Rs 1 lakh in the firm generates Rs 2.79 lakh in a year.
RailTel is growing its network to serve over a million communities within five kilometers of its point of presence. So far, around 16,000 villages have been connected. RailTel’s network connects around 5,000 stations nationwide, including major commercial centers.
RailTel engaged national broadband and VPN services, as well as telecom and multimedia networks, to upgrade Indian Railways’ train control operation and safety system.
Written by:- Abhishek Singh
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