During Friday’s morning trading session, the shares of one of the largest neutral telecom infrastructure providers in India surged by 3.8 percent to Rs. 478.85 on BSE, after the company announced securing a work order worth nearly Rs. 155.7 crores from Rural Development Department.
With a market capitalisation of Rs. 15,034.4 crores, at 12:06 p.m., the shares of RailTel Corporation of India Limited were trading in the green at Rs. 468.45, up by nearly 1.6 percent, as against its previous closing price of Rs. 461.3.
What’s the News:
RailTel Corporation of India has recently announced receiving a significant work order from the Rural Development Department, Mantralaya, Maharashtra, valued at Rs. 155.7 crores.
According to the latest regulatory filings with the stock exchanges, this project focuses on the operationalization of the ASSK-GP initiative across the Konkan, Pune, and Nashik regions, with an expected completion date of September 25, 2025.
Previous Order:
On 13th September, RailTel Corporation of India secured a Rs. 19.7 crore work order from Northern Railways for a railway project. This involves the provision of Double Distant signalling in connection with DFC Feeder routes within the Lucknow Division, scheduled for completion by September 11, 2026.
Additionally, on 16th September, the company bagged another order worth Rs. 48.7 crores from Health Insurance TPA of India Limited for an Integrated Claims Management Solution Portal and Mobile Application, with a delivery deadline of 14th June 2030.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 19.2 percent from Rs. 468 crores in Q1 FY24 to Rs. 558 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 38 crores to Rs. 49 crores, indicating a growth of around 29 percent YoY.
As of July 2024, RailTel’s order book stood at Rs. 4,682 crores. Of this total, Government Nomination orders account for 22.4 percent with a value of
Rs. 1,047 crores, while Tender orders make up the majority at 75.7 percent, totalling Rs. 3,546 crores. Private orders contribute the remaining 1.9 percent, amounting to Rs. 90 crores.
The total income of RailTel Corporation increased by a CAGR of 29 percent to Rs. 2,622 crores in FY24, as against Rs. 1,578 crores in FY22.
Stock Performance
The stock has delivered multibagger returns of nearly 110.3 percent of returns in one year, and around 27.4 percent of positive returns in the last six months. So far in 2024, the shares of Railtel Corporation of India have given positive returns of about 32.8 percent.
About the Company:
Incorporated in 2000, RailTel Corporation of India Limited is one of the largest neutral telecom infrastructure providers in India owning a Pan-India optic fibre network on exclusive Right of Way (ROW) along Railway track.
RailTel is at the forefront of providing nationwide Broadband Telecom & Multimedia Networks in all parts of India in addition to the modernisation of Train operations and administration network systems.
The company also offers a range of passenger services including content-on-demand services and Wi-Fi, across India’s major railway stations.
Written by Shivani Singh
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