The shares of the leading neutral infrastructure provider fallen up to 2 percent despite the company receiving two prestigious orders from Bangalore Metro Rail Corporation Ltd worth Rs 142.87 crore.
With a market capitalization of Rs 14,310.64 crore, the shares of Railtel Corporation of India Ltd were trading at Rs 445.90 per share, decreasing around 1.78 percent as compared to the previous closing price of Rs 454 apiece.
Matter Explanation:-
According to the company filing, Railtel Corporation of India Ltd received two prestigious orders from Bangalore Metro Rail Corporation Ltd worth Rs 142.87 crore. First order, received for SITC of IT Network Infrastructure at Stations & Depots for Reach 5, Reach 6 (Passive Components Only) & Reach 3C for Rs 75.01 crore & the second order received for the Upgradation of the CCTV System of Reach 1 and CAMC for 67.86 crore.
Financial Growth:-
Looking forward to the company’s financial performance, revenue magnified by 19 percent from Rs 468 crore in Q1FY24 to Rs 558 crore in Q1FY25, however during the same time frame, net profit zoomed by 29 percent from Rs 38 crore to 49 crore.
Revenue guidance:-
RailTel aims for a revenue growth of 30% in FY25, following a successful FY24 with 31% growth. Revenue will be driven by telecom services, expected to grow by 9-10%, while project revenues are anticipated to contribute around ₹20 billion
Order Book:-
As of June 2024, the company’s order book was Rs.4,682 crore. In FY25, future tenders from Indian railroads, state governments, and other sectors are likely to create an order inflow of Rs 4,000–5000 crore. The prospective KAVACH project orders, estimated to be between Rs 5,000 crore and Rs 7,000 crore, will increase the order book.
Expansion & remarkable return:-
RailTel intends to expand its offering of services to encompass the complete range of Enterprise services, which will create further growth opportunities. It will expand capabilities in the e-office, CoD, RDN, VSS, Edge Data Center-centric services, and others.
The shares have given a return of 13.70 percent in six months and a multi-bagger return of 101.02 percent in a year. If an individual invested Rs 1 lakh a year ago, it would now be worth Rs 2.00 lakh.
Company profile:-
RailTel Corporation of India Limited is an India-based neutral telecom infrastructure provider, which owns a Pan- India optic fiber network on right of way (ROW) along a railway track. The Company’s segments include Telecom Services and Project Work Services.
Written by:- Abhishek Singh
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