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  1. RailTel up 2% after bagging order worth ₹155 crore from the Rural Development Department

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RailTel up 2% after bagging order worth ₹155 crore from the Rural Development Department

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2 min read | Updated on September 27, 2024, 13:20 IST

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SUMMARY

RailTel’s shares were up 2% after the company announced that it bagged an order worth ₹155 crore from the Rural Development Department. The order is for the operationalisation of the ASSK-GP project in Konkan, Pune, and Nashik regions.

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RailTel up 2% after bagging order worth ₹155 crore from the Rural Development Department.

RailTel up 2% after bagging order worth ₹155 crore from the Rural Development Department.

RailTel’s shares were in focus on Friday after the company announced that it had secured an order from the Rural Development Department. The order is worth ₹155 crore and is for the operationalisation of the ASSK-GP project in the Konkan, Pune, and Nashik regions. Following the announcement, shares of the company were trading higher by 2% at ₹472.75 per share.

The company reported that the order is expected to be completed by September 25, 2025.

Earlier this month, RailTel won an order worth ₹48 crore from the Health Insurance TPA of India. The order pertained to the integrated claims management solution portal and mobile application. The company secured several orders last month including orders worth ₹19 crore and ₹10 crore from the Northern Railways for railway and telecom projects.

Among the major order wins during the quarter, the company bagged an order from the Ministry of Railways for the augmentation of existing HMIS applications and other railway requirements. This order is worth ₹186 crore and is expected to be executed within 4 years.

Last month, RailTel announced that the Department of Public Enterprises has granted the company the Navratna status.

In Q1FY25, RailTel’s net profit grew by 27% year-on-year (YoY) to ₹48.57 crore. The revenue from operations rose 19.35% YoY to ₹558.11 crore.

During the quarter, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed 14.5% YoY to ₹103.37 crore.

From a segment point of view, RailTel’s revenue from telecom services grew by 12.37% year-on-year (YoY) to ₹327 crore. Meanwhile, the revenue from the project work services was up 30.92% YoY to ₹230.34 crore.

Railtel’s order book at the end of Q1FY25 stood at ₹4,682 crore. The company’s order book mainly contains state government and railway segment projects.

Shares of the company have risen by nearly 34% since the beginning of the year. The stock has gained over 111% in the past year.

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