Diverse order book: Railtel Corporation bags new contracts from the education and technology sector

Continued growth

RailTel Corporation, one of the leading telecom infrastructure providers in India, has recently secured two significant contracts showcasing their diverse capabilities. RailTel has been awarded a Rs 39.88 crore contract by the Bihar Education Project Council to supply teaching and learning materials for Class IV and V students.

Furthermore, RailTel has received a Rs 29.54 crore order from the Centre for Development of Telematics (C-DoT) to install, test, and commission MPLS VPN connectivity at 26 sites across India. This project will upgrade C-DoT’s network with secure and high-speed connections, supporting their critical operations.

These contracts highlight RailTel’s versatility in catering to diverse needs within the education and technology sectors. The education materials project positions them as a key player in educational resource distribution, while the C-DoT project showcases their expertise in network infrastructure deployment and management.

With a total order value exceeding Rs 69 crore, these wins mark a positive development for RailTel and demonstrate their potential for continued growth in the Indian market. Their commitment to technology and social impact makes them a valuable partner for government and private entities alike.

Financial Performance 

Railtel Corporation of India Limited reported a strong robust quarter for FY24, with a net sales increase of 24.08% to Rs 467.61 crore, compared to Rs 376.85 crore in the same quarter last year. The operating profit also experienced a significant increase of 18.73%. The net profit for the quarter stood at Rs 38.39 crore, which was Rs 25.89 crore in the previous year’s same quarter.

Business Overview    

RailtelCorporation of India Limited (Railtel) is a Miniratna (Category-I) PSU, which owns a pan-India optic fibre network providing broadband and multimedia services, along with modernization and maintenance of the communications network of the Indian Railways. The company now offers services to other private and government clients as well. It has two main lines of business: telecom and projects. The company has an order book of Rs 5,100 crore. The stock has also delivered multibagger returns of about 140 per cent in the last one year.

Stock Price Movement    

Today, the stock opened at Rs 351.40, with a high and low of Rs 353.75 and Rs 345.40, respectively. The stock is currently trading at Rs 347.35, which decreased by 0.39%. The stock has a 52-week high of Rs 374 and a 52-week low of Rs 96.20. The company has a ROCE of 16.2% and an ROE of 12.0%, with a market capitalisation of Rs 11,133 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.