Railway stock engaged in providing telecom infrastructure like virtual private networks, Internet leased in line and many more throughout India jumped upto 4 percent in the day’s trade upon receiving new work order worth Rs. 19.70 Crores.
Price Action
With a market capitalization of Rs. 15,400 Crores, the shares of Railtel Corporation of India Limited were trading at Rs. 479.45 per equity share, up 2 percent from its previous day’s close price of Rs. 469.95.
What Happened
Railtel Corporation of India Limited has received a new work order from the Northern Railways for the Provision of Double Distant in connection with DFC Feeder routes (AMG-UTRZBDSOP, ZBD-JNU(EX), ABP(EX)-TD and UCRPFM) over Lucknow Division for a consideration of ~Rs. 19.70 Crores and it should be executed by September 11, 2026.
About the Company
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 Q1FY25, it has a strong order book of Rs. 4,682 Crores, of which 75 percent of the orders were received through tenders, Government Nomination 22.4 percent, and Private 1.9 percent.
It has a strong customer base with well-known players like the Ministry of Railways, DRDO, Indian Air Force, Coal India, ONGC, HPCL, RVNL, Sail, NMDC, Google, Amazon, BSNL, well-known banks, and many others.
Financials & Ratios
Its Revenue from operations grew by 19.35 percent YoY from Rs. 468 Crores in Q1FY24 to Rs. 558 Crores in Q1FY25, accompanied by profits of Rs. 38 Crores to Rs. 49 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 15.2 percent and a return on capital employed (ROCE) of 20.2 percent. It has reported a debt-to-equity ratio of 0.02.
Written by: Bharath K.S
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