On the Monday’s trading session, the shares of one of the Telecommunication companies specializing in modernizing and transforming India’s railway infrastructure almost surged by 2 percent after receiving work order worth Rs.13.34 Crores from the South Central Railways (CSR)
Price action
With the market capitalization of 13,986 Crores on Monday, the shares of RailTel Corporation Ltd jumped up to 2 percent making a high of Rs 444.90 compared to its previous closing price of Rs.435.85.
What happened
RailTel Corporation Ltd has secured a major work order from South Central Railways (CSR) for it involves in establishment of an EPC (Engineering, Procurement and Construction) a Core Infrastructure for a 4G LTE-R network which stretches 523 route kilometers within Secunderabad Division of the South Central Railways (SCR).
This initiative will allow RailTel to implement advanced 4G LTE-R technology, which is crucial for upgrading and streamlining communication systems across the railway network, ensuring safer and more efficient operations and the total value of the contract is Rs.13.34 Crores.
About the Company
RailTel Corporation of India Ltd is a leading public sector enterprise under the Ministry of Railways specializing in modernizing India’s telecom infrastructure. It operates one of the largest optic fiber networks across the country, covering over 60,000 kilometers along railway tracks. The company offers a wide range of services including broadband connectivity, data center solutions and e-governance services, playing a pivotal role in enhancing the digital infrastructure of Indian Railways.
RailTel is at the forefront of introducing advanced technologies like 4G LTE-R for railway communication and has been instrumental in providing free Wi-Fi at thousands of railway stations, making it a key player in India’s digital transformation.
Financials
The company’s revenue rose by 40.7 percent from Rs. 612.82 crore in Q2FY24 to Rs 862.51 crore in Q2FY25. Meanwhile, Net profit increased from Rs 68.15 crores to Rs 72.64 crore during the same period.
Key Financial ratios
RailTel Corporation Ltd has an impressive Return on Equity (RoE) of 13.82 percent and a Return on Capital Employed (RoCE) of 17.35 percent and Furthermore, the company’s debt-to-equity ratio is 0.03.
Stock Performance
The stock has provided impressive returns of about 53.76 percent over the year, along with a remarkable 10.85 percent gain in the past month of 2024, it has continued to perform strongly.
Written by Sridhar J
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