Synopsis:
Navratna PSU secures a Rs. 264 crore order from East Central Railway to install the Kavach anti-collision system across a 607 km route.
This state-owned telecom infrastructure provider for railways, known for its robust network connectivity and digital solutions, has secured a significant contract to deploy the indigenous Kavach anti-collision system across specific routes, news of which has already positively impacted its stock performance. Let’s dive into the details.
Railtel Corporation of India Limited’s stock, with a market capitalisation of Rs. 13,463 crores, rose to Rs. 426, hitting a high of up to 3.92 percent from its previous closing price of Rs. 426. However, the stock over the past year has given a negative return of 27.3 percent.
Order Details
RailTel Corporation of India has secured a major work order worth Rs. 264.07 crore from East Central Railway. The order involves installing “Kavach,” an indigenous Train Collision Avoidance System, across 607 route kilometres of low-density railway track. The nature of the contract is classified as “Works” and has been awarded by a domestic entity.
The work is scheduled to be executed by July 14, 2027. There is no involvement of related party transactions, and none of the promoter groups have any interest in the awarding entity.
Also read: Power stock jumps 4% after receiving ₹551 Cr order for thermal power projects
Order Book Overview
RailTel’s current order book stands at Rs. 7,018 crore, with a major portion coming from state governments and Indian Railways. State government projects contribute Rs. 2,076 crore (29.59%), while Indian Railways accounts for Rs. 2,004 crore (28.56%). Government departments add another Rs. 868 crore (12.36%) to the overall value.
Among other segments, Central Public Sector Enterprises (CPSEs) contribute Rs. 905 crore (12.89%), followed by Railway PSUs at Rs. 566 crore (8.07%). The banking sector adds Rs. 385 crore (5.48%), private enterprises add Rs. 119 crore (1.69%), and Telcos & MSOs Rs. 95 crore (1.36%).
Financial Highlight
The company reported a strong financial performance in Q4FY25, with revenue rising 57 percent YoY to Rs. 1,308 crore from Rs. 833 crore in Q4FY24. On a QoQ basis, revenue grew 70 percent from Rs. 768 crore in Q3FY25. This sharp rise reflects the company’s robust growth momentum, backed by a 3-year sales CAGR of 32 percent.
Net profit surged 45 percent YoY to Rs. 113 crore in Q4FY25, compared to Rs. 78 crore in the same period last year. QoQ, profit rose 74 percent from Rs. 65 crore in Q3FY25. The consistent earnings growth is in line with its 3-year profit CAGR of 23 percent, while the 3-year ROE CAGR stands at a healthy 15 percent, highlighting efficient capital allocation.
Written By Fazal Ul Vahab C H
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