Railway stock engaged in providing telecom infrastructure like virtual private networks, Internet leased in line and many more throughout India jumped 9 percent in the day’s trade upon receiving a work order from the Ministry of Defence worth Rs. 11.23 Crores.
With a market capitalization of Rs. 13,350 Crores, the shares of Railtel Corporation of India Limited were trading at Rs. 415.95 per equity share, up 8.25 percent from its previous day’s close price of Rs. 384.25.
Railtel Corporation of India Limited has received a new work order from the Ministry Of Defence for a consideration of Rs. 11.23 Crores for the Creation of RailTel PoP at the Customer Sites and the work order should be executed by June 2025.
RailTel PoP (Point of Presence) at customer sites refers to the creation of a RailTel Point of Presence at the customer’s site. This involves setting up a RailTel infrastructure at the customer’s location, which enables the customer to access RailTel’s services and infrastructure. It is likely to include broadband internet, data center services, and other ICT services offered by RailTel.
Railtel Corporation of India Limited is a Miniratna PSE engaged in providing neutral telecom infrastructure throughout India. It provides a range of telecom services like virtual private networks, internet leased in line, etc, and other project work services like national optic fiber network and other specific telecom and IT services.
As of March 31, 2023, Railtel Corporation of India Limited has a strong order book of Rs. 4,700 Crores and out of this, it expects to implement and convert into revenue around Rs. 2000 odd crores this year.
Its revenue from operations grew by 18.89 percent from Rs. 700.41 Crores in Q4FY23 to Rs. 832.7 Crores in Q4FY24, accompanied by increasing profits of Rs. 75.55 Crores to Rs. 77.53 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.3 percent and a return on capital employed (ROCE) of 20.3 percent. It has reported a debt-to-equity ratio of 0.02.
Written by: Bharath K.S
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