This Railway PSU stock which deals in the business of creating broadband and VPN services nationwide, multimedia, and telecom networks was up 5% after the company received an order worth approx Rs. 104 crore from Maharashtra State Power.
Share Price Movement
In Saturday’s trading session, Railtel Corporation of India‘s share price was up by 4.86 percent to the day’s high of Rs. 426.40. The stock reiterated from the day’s high and was trading at Rs. 417.65 which is 2.72 percent higher from the previous close of Rs. 406.60 per share. In the past year, the stock has had a negative return of around 5 percent and has underperformed the Nifty Index.
What Happened
The company’s stock surged after receiving the work order from Maharashtra State Power Generation Company worth approximately Rs. 104.15 crore received on January 31, 2025. The work order is related to IT Network Restructuring for Nine Plants and Three Offices in MSPGCL to the latest technology. The period for the execution of the order is dated January 30, 2030.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 14.97 percent increase in revenue, reaching Rs.768 crore compared to Rs.668 crore in Q3FY24. During the same period, net profit increased by 4.83 percent to Rs.65 crore in Q3FY25, compared to Rs.62 crore in Q3FY24.
Future Plans & Capex
RailTel plans to expand its portfolio by adding more services to offer a complete range of enterprise solutions, driving growth. It will focus on value-added capabilities such as managed services, cloud, LTE, IoT platforms, analytics, SOC, and KAVACH. The company aims for revenue growth of 25 to 30 percent and a PAT margin of 9 to 10 percent in FY25. For the Telecom segment, RailTel expects to maintain an EBIT margin of 20 to 22 percent, while the project business targets a margin of 6 to 7 percent. In FY24, the company invested Rs. 199 Crore in capex, mainly for OFC-related assets, and plans Rs. 296 Crore in FY25.
Company Profile
RailTel Corporation of India Ltd was established in 2000. It is a Navratna PSU that provides nationwide broadband, multimedia services, and telecom services while improving railway communication and infrastructure across India.
Written by – Santhosh S
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