RailTel receives order worth 186.1 crore from Railways, to be executed in four years

“This is to inform that RailTel Corp has received the work order from Ministry Of Railways (Railway Board) for Design, Development, Implementation, Operations and Maintenance of HMIS and Integrated Empanelled Hospital Referral Portal for Indian Railways amounting to Rs 1,86,81,00,000 (Including Tax),” the company said in an exchange filing.

The company said it has to execute the order within the next four years.

The announcement came after market hours, even as RailTel had already closed 2% higher today.

RailTel was incorporated in 2000 with the aim of modernising the existing telecom system for train control, operation, and safety and to generate additional revenues by creating nationwide broadband and multimedia network, laying optical fiber cable using the right of way along railway tracks.

Presently, the optic fiber network of RailTel covers over 61000+ route kilometers and covers 6108+ railway stations across India.

RailTel has a strategic relationship with the Indian Railways and it undertakes a wide variety of projects including provision of mission critical connectivity services like IP based video surveillance system at stations, ‘e-Office’ services and implementing short haul connectivity between stations and long haul connectivity to support various organizations within the Indian Railways.

The company also provides various passenger services including content on demand services and Wi-Fi across major railway stations in India.

Railway stocks have been in the limelight recently amid expectations that the Budget will ramp up spending for the transporter.

Over the past three years, RailTel shares have jumped 267% in absolute terms.

The share performance has been driven by the company’s strong fundamentals: it has grown net profit by an annualised 20.6% and revenue by 24.3% over the past three years. The company is debt free and its return-on-equity has ranged between 11.5% and 13.7%.