Stock in Focus: RailTel Corporation of India Ltd, a government telecom infrastructure company associated with the railway sector, has received a big order. This order has been given by Assam Health Infrastructure Development and Management Society (AHIDMS). Its estimated value is ₹567 crore.
This order is linked to the Hospital Management Information System (HMIS). Under this, the responsibility of procurement, implementation and maintenance of HMIS has been given to RailTel. According to the company, this project is to be completed by January 31, 2032, that is, it is a long term project.
Increase in profit and revenue in the second quarter
RailTel’s performance was better in the September quarter (Q2). The company’s net profit increased by 4.7% year-on-year to ₹76 crore, compared to ₹73 crore in the same quarter last year.
During the same period, the company’s revenue increased by 12.8% to ₹951.3 crore, which was ₹843.5 crore a year ago. Project Work Services business contributed significantly to this growth, although this segment is considered to be low margin. The company’s EBITDA in Q2 increased by 19.4% to ₹154.4 crore from ₹129.3 crore last year. EBITDA margin also increased from 15.3% to 16.2%.
RailTel shares performance
RailTel shares closed 0.16% lower at ₹370.95 on Thursday. The stock is up 9.47% in the last 1 month. The stock has fallen 13.02% in the last 6 months. It has given a return of 205.69% in five years. The market cap of the company is Rs 11.90 thousand crore.
What is the business of RailTel?
The business of RailTel Corporation of India Ltd is mainly related to telecom and digital infrastructure. The company provides broadband, data communication, leased lines, VPN, Internet, tower backhaul and enterprise connectivity services across the country using the optical fiber network of Railways.
Apart from this, RailTel also works on e-governance, network integration, data centre, cloud, cyber security and IT projects like smart city, hospital management system and digital platforms for the government and public sector, due to which its revenue comes from both telecom services and project work.
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