The shares of one of the largest neutral telecom infrastructure providers gained up to 4.3 percent after the company received an order worth Rs 68.83 crore from N F Railway Construction.
With a market capitalization of Rs 9,482.13 crores, the shares of Railtel Corporation of India Ltd were trading at Rs 295.45 per share, increasing around 1.41 percent compared to the previous closing price of Rs 291.35 per share.
According to the exchange filing, Railtel Corporation of India Ltd received an order worth Rs 68.83 crore for Supply, Installation, Testing, and commissioning of Integrated Tunnel Communication system, Emergency Call Arrangements in Tunnels & IPIS from N F Railway Construction.
In more than one lac villages that are only five kilometers from RailTel’s POP, the company is growing RailTel’s networks. Over 16,000 villages have been connected thus far.
Looking into Railtel Corporation of India Ltd’s performance, revenue increased by 1.2 percent from Rs 429 Crore in Q2FY23 to Rs 599 Crore in Q2FY24. During the same duration, net profit increased by 23 percent from Rs 55 crore to Rs 68 crore.
Moreover, with a potential market value of over Rs. 150 Cr., the company can host and operate NIC’s e-office for Central and State government ministries and departments, serving about 2.5 lac users across 80+ major clients.
In order to acquire, maintain, and upgrade physical assets like OFC, buildings, technology, and equipment, RailTel occasionally invests in capital expenditures (capex). In FY 2023–2024, an estimated 157.67 Cr of capital expenditures are planned.
The company has more than 6000 years of experience installing wifi hotspots in train stations and is skilled in designing both public and private hotspots from conception to commissioning.
RailTel Corporation of India Ltd. is a public sector company in India that offers VPN and broadband services to update Indian Railways’ safety and train control systems.
Written by Abhishek Singh
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