Market News
2 min read | Updated on August 27, 2024, 16:15 IST
SUMMARY
RailTel Corporation of India announced that the company has received a work order worth ₹70 crore from the Eastern Railway for the implementation of unified communications infrastructure. Despite the order win, shares of the company were trading lower by nearly 0.75%.
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RailTel wins order from Eastern Railway for the implementation of unified communications infrastructure.
The company stated that the order is expected to be executed by November 25, 2025.
Last week, the company announced that it secured an order from Uttar Pradesh Police Recruitment and Promotion Board. The order, worth ₹52 crore, is for live CCTV surveillance service, impersonation control through Aadhaar-based biometric service, and digital fingerprint & facial recognition during written exams. The order is expected to be executed by August 31, 2024.
In July, the company informed that it received an order worth ₹186.81 crore from the Ministry of Railways for the design, development, implementation, and operations & maintenance of the existing HMIS application. Additionally, the order entails an integrated empaneled hospital referral portal for the Indian Railways.
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.
In an earnings call, RailTel management stated that their revenue mix is getting skewed with telecom and the project space contributing an equal amount to the company’s revenue. As a result, the company’s net profit will be affected.
“Our project space is also growing very fast no, so the mix is getting little skewed in the sense see if you see at one point in time the telecom was contributing 70 percent and project space was only 30 percent now they are seeing eye to eye,” the management said.
Shares of the company have risen by nearly 41% since the beginning of the year. The stock has gained over 161% in the past year.
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