CALCULATE YOUR SIP RETURNS

RailTel Corporation Secures ₹75.8 Crore Work Orders from Northern and East Central Railways

Written by: Dev SethiaUpdated on: Mar 10, 2025, 9:50 AM IST
RailTel secured ₹75.8 crore orders from Northern & East Central Railway for signalling upgrades, enhancing rail safety, with completion by 2026.
RailTel Corporation Secures ₹75.8 Crore Work Orders from Northern and East Central Railways
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

RailTel Corporation of India Ltd, a leading telecom infrastructure firm, announced on Friday that it has secured two significant work orders totalling ₹75.8 crores from Northern Railway and East Central Railway.

Northern Railway’s ₹28.29 Crore Order Details

Northern Railway has awarded the first order, valued at ₹28.29 crore. The project involves indoor and outdoor double-distant signalling work, which is critical for ensuring safe and efficient train operations.

RailTel has been tasked with completing this project by September 6, 2026. The initiative is expected to bolster the signalling infrastructure, thereby improving the overall safety and reliability of railway services in the region.

About East Central Railway ₹47.5 Crore Order

East Central Railway has placed the second order, worth ₹47.5 crore. This project involves designing, manufacturing, supplying, installing, testing, and commissioning an Electronic Interlocking System in the Dhanbad Division.

Electronic interlocking systems are vital for managing train movements and preventing collisions by ensuring that signals and points operate in a synchronised manner. The project is slated for completion by March 6, 2026.

Q3 FY25 Performance 

In addition to the new contracts, RailTel Corporation also reported its financial performance for the latest quarter. The company’s net profit rose by 4.7% year-on-year (YoY) to ₹65 crore, up from ₹62.1 crore in the same period last year.

Revenue from operations saw a significant surge, increasing by 14.8% YoY to ₹767.6 crore, compared to ₹668.4 crore in the third quarter of the fiscal year 2023-24 (Q3 FY24). This robust revenue growth highlights RailTel’s expanding business footprint and its ability to secure high-value projects.

However, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) witnessed a 6.6% YoY decline, settling at ₹121 crore against ₹129.7 crore in the corresponding quarter of the previous year.

As a result, the EBITDA margin contracted to 15.8%, down from 19.4% in Q3 FY24. This dip in EBITDA margin underscores the need for the company to balance its growth trajectory with cost management.

Stock Performance 

On March 10, 2025, Railtel Corporation share price traded 0.55% higher at ₹300.20 at 9:32 AM (IST). Railtel Corporation’s share price reached a 52-week high of ₹618, and a 52-week low of ₹265.30. As per BSE, the total traded volume for the stock stood at 0.60 lakh shares with a turnover of ₹1.83 crores.

At the current price, Railtel Corporation shares are trading at a price-to-earnings (P/E) ratio of 36.52x, based on its trailing 12-month earnings per share (EPS) of ₹8.22, and a price-to-book (P/B) ratio of 5.10, according to exchange data.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 10, 2025, 9:50 AM IST

Dev Sethia

Dev is a content writer with over 2 years of experience at Business Today, Times of India, and Financial Express. He has also contributed stories in Hindi for BT Bazaar and Khalsa Bandhan News Paper. A journalism postgraduate from ACJ-Bloomberg, Dev enjoys spending his spare time on the cricket pitch.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers