The shares of the leading neutral infrastructure provider gained up to 2 percent after the company bagged work orders from 3 domestic clients worth Rs 87.2 crore.
RailTel Corporation of India Ltd has a market capitalization of Rs 13,972.05 crore, the shares were trading at Rs 435.35 per share, decreasing around 0.72 percent as compared to the previous closing price of Rs 438.75 apiece.
Reason for Rise:-
According to the company filing, RailTel Corporation of India Ltd received work orders from three domestic clients totaling Rs 87.2 crore. The first order from Kavaratti Smart City Limited for the Integrated Command and Control Centre was worth Rs 51.40 crore, while the second order from the Controller General of Defence Accounts for NOC SOC Solution for CGDA was valued Rs 21.64 crore.
Furthermore, the third order obtained from the ICDs Commissioner, Maharashtra for the Integrated Child Development Service of Rs 14.20 crore.
Financial Growth:-
Looking forward to the company’s financial performance, revenue magnified by 19 percent from Rs 468 crore in Q1FY24 to Rs 558 crore in Q1FY25, however during the same time frame, net profit zoomed by 29 percent from Rs 38 crore to 49 crore.
Recent order:-
Recently, the company bagged an order from the Maharashtra Housing And Area Development Authority for the selection of a service provider to set up, migrate, and manage data center (DC) and disaster recovery (DR) site for MHADA on cloud worth Rs 79.84 crore.
Revenue guidance:-
RailTel aims for revenue growth of 30% in FY25, following a successful FY24 with 31% growth. Revenue will be driven by telecom services, expected to grow by 9-10%, while project revenues are anticipated to contribute around ₹20 billion.
Order Book:-
As of June 2024, the company’s order book was Rs.4,682 crore. In FY25, future tenders from Indian railroads, state governments, and other sectors are likely to create an order inflow of Rs 4,000–5000 crore. The prospective KAVACH project orders, estimated to be between Rs 5,000 crore and Rs 7,000 crore, will increase the order book.
Expansion & remarkable return:-
RailTel intends to expand its offering of services to encompass the complete range of Enterprise services, which will create further growth opportunities. It will expand capabilities in the e-office, CoD, RDN, VSS, Edge Data Center-centric services, and others.
The shares have given a return of 18.85 percent in six months and a return of 81.07 percent in a year.
Company profile:-
RailTel Corporation of India Limited is an India-based neutral telecom infrastructure provider, which owns a Pan-India optic fiber network on right of way (ROW) along a railway track. The company’s segments include Telecom Services and Project Work Services.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
