RailTel share price jumps 10% on winning ₹79 crore order from MHADA
After the Maharashtra Housing and Area Development Authority (MHADA) announced a new contract for ₹79 crore, shares of RailTel Corporation of India jumped 10% intraday on Wednesday to ₹449 per share. The order entails MHADA’s establishment, migration, and management of a cloud-based data centre and disaster recovery site.
This is the third-order victory for RailTel this month. According to the business’s exchange filing, on October 2, Bangalore Metro Rail Corporation Ltd awarded the company two contracts worth ₹142.87 crore: one for IT Network Infrastructure at various metro stations and depots, and another for updating the CCTV system on Reach 1 jointly with CAMC.
At the end of September, RailTel had five fresh orders, including a significant ₹134 crore contract for an Advanced Smart Metering Infrastructure Project from Adani Connex. The Health Insurance TPA of India has awarded the business a ₹48.7 crore order to construct an integrated claims management solution and mobile application, with a completion date of June 14, 2030.
Stock performance in 2024
RailTel’s steady stream of orders this year has attracted investors’ attention, as evidenced by the 31% rise in the company’s share value thus far this year. The stock had a remarkable 168% rise at the end of CY23.
Information and communication technology (ICT) services are provided by RailTel, a well-known central public sector enterprise that is classified as a “Mini Ratna (Category-I)”. It is one of the biggest providers of neutral telecom infrastructure in India, with a vast network of optic fibres connecting both rural and urban locations.
When RailTel was founded on September 26, 2000, its primary objective was to update the current telecom infrastructure, with an emphasis on improving safety, operation, and control systems for trains.
At the same time, it sought to create new sources of income by building a national broadband and multimedia network. Using the right-of-way that already existed, optical fibre cables were carefully installed along railway tracks as part of this project.
The company announced a net profit of ₹49 crore for the June-ending quarter (Q1FY25), a 25% increase over the previous quarter’s net profit of ₹39 crore. During the same period, operating revenue increased by 19.3% YoY to 558 crore.
The net profit for the entire fiscal year (FY24) increased 31.55% YoY to ₹246 crore, while operating revenue increased 32% YoY to ₹2,568 crore.
