Railtel Corporation of India shares

Railtel Corporation of India Shares Jump 5% After ₹144 Crore Order Win from Gujarat Govt

Shares of Railtel Corporation of India surged by over 5% on Thursday after the company announced a significant order win from the Gujarat government. The new contract, valued at ₹144.88 crore, involves the Supply, Installation, Commissioning, and Operations Maintenance of CCTV Video Surveillance Systems across multiple locations for the Gujarat Home Department. The project includes work at LCB SoG Cyber Police Stations, LIB, and other police stations within Clusters 1, 2, and 3. The work is set to be completed by May 21, 2025.

Key Order Wins and Project Details

• The ₹144 crore work order is a part of Railtel’s expanding portfolio in the public sector, particularly in security and surveillance infrastructure.
• In addition to the Gujarat government order, on October 22, Railtel won another order from South Eastern Railway. This project is valued at ₹36.78 crore and involves the Provision of Electronic Interlocking Systems and Signaling Arrangements for Bondamunda K, Bondamunda D, and Bondamunda E & J Cabins. This order is expected to be completed by October 16, 2025.

Q1 FY25 Performance

Railtel Corporation reported strong financial performance in Q1 FY25:

• Revenue Growth: The company posted a 19.35% YoY growth, with revenue increasing from ₹467.6 crore in the same quarter last year to ₹558 crore.
• Net Profit Growth: Net profit surged by 26.78% YoY, increasing from ₹38.3 crore in the previous quarter to ₹48.6 crore.
• Operating Profit: The company’s operating profit rose to ₹122.8 crore, up from ₹105.3 crore in the previous quarter.

Upcoming Q2 FY25 Financial Results

Railtel’s Board of Directors is scheduled to meet on October 28 to approve the financial results for the second quarter of FY25. Investors and analysts are eager to see if the company’s strong Q1 performance continues.

Railtel Corporation Overview

Railtel Corporation of India Limited is a key player in the Information and Communications Technology (ICT) infrastructure sector and one of the largest neutral telecom infrastructure providers in India. Some of the company’s core offerings and capabilities include:

• High-capacity transport network based on Dense Wavelength Division Multiplexing (DWDM) technology.
• Multi-Protocol Label Switching (MPLS) network to support communication for Indian Railways and other critical customers.
• Railtel also operates data centers in Gurugram, Haryana, and Secunderabad, Telangana, which host and collocate crucial customer applications.

Stock Performance

Following the announcement of the Gujarat government order, Railtel shares hit an intraday high of ₹420 apiece on the NSE, marking a gain of over 5%. On a year-to-date (YTD) basis, Railtel shares have delivered a 17% return, and on an annual basis, the stock has provided impressive returns of 93%.

Conclusion

The order wins from the Gujarat government and South Eastern Railway signify Railtel’s continued momentum in securing major contracts in the public sector, boosting its financial and operational performance. With a solid Q1 performance and strong investor confidence reflected in its share price surge, Railtel is expected to maintain its growth trajectory in the coming quarters.

FAQs

1. What was Railtel’s recent order win from the Gujarat government?

1. • Railtel won a ₹144.88 crore order from the Gujarat government to install and maintain CCTV Video Surveillance Systems across multiple police stations.

2. What is the value of the order Railtel received from South Eastern Railway?

1. • Railtel received a ₹36.78 crore order from South Eastern Railway for the provision of Electronic Interlocking Systems and Signaling arrangements.

3. How did Railtel perform financially in Q1 FY25?

1. • Railtel reported 19.35% revenue growth YoY, reaching ₹558 crore, and a 26.78% increase in net profit, amounting to ₹48.6 crore.

4. When will Railtel announce its Q2 FY25 financial results?

1. • Railtel’s Board of Directors will meet on October 28, 2024 to approve the Q2 FY25 financial results.

5. How has Railtel’s stock performed recently?

1. • Railtel’s shares rose over 5% after the recent order announcement, hitting an intraday high of ₹420 per share on the NSE. The stock has provided a 17% YTD return and 93% return on an annual basis.

Railtel Corporation of India shares

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