RailTel Corporation of India: Early on Saturday, February 1, RailTel Corporation of India shares increased by as high as 9.43%. This follows the company’s three significant order wins from a defense PSU, the Department of Education Samagra Shiksha, and the Maharashtra State Power Generation. Let’s learn more about RailTel Corporation of India and its order in length with this article.
Overview of RailTel Corporation of India
An ICT supplier and one of the biggest providers of neutral telecom infrastructure in the nation, RailTel is a Central Public Sector Enterprise that is also a “Navratna” with pan-India optic fiber network. The OFC network includes a number of rural areas as well as the nation’s major towns and cities.
In order to modernize the current telecom system for operation, train control, and safety, as well as to create a nationwide broadband and multimedia network and lay optical fiber cable using the right of way along railroad tracks, RailTel was incorporated on September 26, 2000. Currently, RailTel’s optical fiber network spans more than 6108 railway stations and more than 61000 route kilometers throughout India. Their nationwide citywide access spans more than 21,000 kilometers.
Details of Order Received by RailTel Corporation of India
Increases in share prices have resulted from the company receiving many large work orders. With a total value of Rs. 1,04,15,95,094 (including tax), RailTel has obtained a work order for IT network restructuring from Maharashtra State Power Generation Company Ltd. The company’s revenue and market position in the sector of IT as well as infrastructure are anticipated to increase as a result of this project.
A number of these significant work orders that the company has received have improved share values. It is also anticipated that this project will increase the company’s earnings and solidify its place in comparison to its competitors.
RailTel Corporation of India Financials
In late January 2025, RailTel revealed its Q3 results, showing a 14.8% growth in revenue to ₹767.6 crore and a 4.7% YoY increase in net profit to ₹65 crore. But EBITDA fell 6.6% year over year. In the fiscal year earlier, RailTel showed significant growth in Q2 FY25, with revenue rising 40.7% year over year to ₹843 crores and net profit rising 7.4% year over year to ₹73 crores. According to some accounts, Q3 FY25 saw a flat performance, with profitability issues despite strong sales.
Final Verdict
Prior to the announcement of the Union Budget, RailTel obtained a number of important orders in January 2025, including a ₹220 crore order, a ₹17 crore IT order from Navodaya Vidyalaya Samiti, a ₹9.44 crore order from the Chhattisgarh Environment Conservation Board, and a green contract from Northwestern Railway of ₹46.79 crore. The company is flourishing with constant project orders, and the shares are exploding like never before.
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