RailTel Corporation of India, a prominent provider of information and communication technology (ICT) services, extended its winning streak into a second consecutive trading session on Friday. The company’s shares surged by 12.50% to reach ₹488 apiece, nearing their previous all-time high of ₹494.41 achieved in February.
The positive momentum follows RailTel’s recent announcement of securing a significant ₹20 crore contract from South Central Railway for telecommunication works across 523 RKM of the Secunderabad division. This development propelled the stock to post nearly a 2% increase in the previous session.
In addition to the South Central Railway contract, RailTel has secured several other substantial orders this month. These include a ₹24 crore contract from Tamil Nadu Fibrenet Corporation for system integration services and an ₹11 crore order from the Ministry of Defence for establishing RailTel Points of Presence (PoP) at customer sites.
Furthermore, the company has bagged a major ₹81.46 crore contract from the National Informatics Centre Services for supplying, installing, and maintaining ICT infrastructure.
Investors have responded positively to RailTel’s robust order book this month, driving a 15% increase in the company’s share value in June alone. Year-to-date, the stock has grown by 40%, building on a significant return of 167% in the previous calendar year (CY23).
RailTel, classified as a ‘Mini Ratna (Category-I)’ Central Public Sector Enterprise, operates India’s largest neutral telecom infrastructure, with an extensive optic fiber network spanning urban hubs and rural areas alike. Established in 2000, RailTel aims to modernize telecom infrastructure and enhance train control and safety systems, while also generating revenue through broadband and multimedia networks along railway tracks.
For the fourth quarter of FY24, RailTel reported a net profit of ₹78 crore, marking a 4% increase year-on-year (YoY), with revenue from operations rising by 19.51% YoY to ₹833 crore. For the full fiscal year FY24, the company’s net profit surged by 31.55% YoY to ₹246 crore, supported by a 32% YoY increase in revenue to ₹2,568 crore.
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