Railtel Corporation of India shares jump over 5% on ₹144 crore order win from Gujarat govt

RailTel Corporation of India has received the work order from the Home Department, Government of Gujarat, for the Supply, Installation, Commissioning, and Operations Maintenance of CCTV Video Surveillance Systems at various branches LCB SoG cyber police station and LIB and police stations for Cluster 1, 2, and 3, amounting to ₹144.88 crore (including tax). The said order will be executed by May 21, 2025.

On October 22, the company received another work order from South Eastern Railway for the Provision of an Electronic Interlocking system and Signaling arrangements (Both Indoor and outdoor) at Bondamunda K, Bondamunda D, and Bondamunda E & J Cabins. The broad consideration or size of the order is ₹36.78 crore (including tax). The said order is expected to be completed by October 16, 2025.

In the quarter gone by, the company reported strong revenue growth of 19.35% to ₹ 558 crore for the quarter ended June 2024, compared to ₹ 467.6 crore during the corresponding quarter last year. Net Profit growth of 26.78% was reported above the previous quarter's figure of ₹38.3 crore to ₹48.6 crore. The operating profit surged to ₹122.8 crore from the previous quarter of ₹105.3 crore.

The company board will be meeting on October 28 to approve financial results for Q2FY25.

Railtel Corporation Of India Limited is an information and communications technology (ICT) infrastructure provider and is one of the largest neutral telecom infrastructure providers in India. The transport network is built on high-capacity dense wavelength division multiplexing (DWDM) technology and an Internet protocol/ multi-protocol label switching (MPLS) network over it to support mission-critical communication requirements of Indian Railways and other customers. The company operates data centres in Gurugram, Haryana, Secunderabad, and Telangana to host and collocate critical customer applications, including the Indian Railways.

Following the announcement, shares of Railtel Corporation hit an intraday high of ₹420 apiece on the NSE, gaining over 5%. On a YTD basis, the share of Railtel Corporation has delivered moderate returns of 17% and impressive returns of 93% on an annual basis.