RailTel Corp share drops 8% after margins dip in Q3 show; know more

RailTel Corporation of India share slipped 7.69 per cent at Rs 336.10 a piece on the BSE in Tuesday’s intraday trade after the public sector enterprise released its financial results for the third quarter ending December 31, 2024 (Q3FY25), on Monday, revealing a decline operating margins. 

 

RailTel Corporation’s net profit rose by 4.7 per cent year-on-year (Y-o-Y) to Rs 65 crore in Q3FY25, compared to Rs 62.1 crore in the corresponding quarter of the previous year. Revenue from operations grew by 14.8 per cent Y-o-Y, reaching Rs 767.6 crore in Q3FY25, up from Rs 668.4 crore in Q3FY24.  

 

However, earnings before interest tax, depreciation and amortisation (Ebitda) declined by 6.6 per cent Y-o-Y to Rs 121 crore, compared to Rs 129.7 crore in the same period last year. This resulted in a reduction in the Ebitda margin, which fell to 15.8 per cent, down from 19.4 per cent in Q3 FY24.

 

On the equities front, RailTel Corp share price has underperformed the market, falling 30 per cent in the last six months, while losing 22 per cent in the last one year. In comparison, the BSE Sensex has slipped 6.8 per cent in the last six months, while rising 7.1 per cent in the last one year. 

 

RailTel Corp has a total market capitalisation of Rs 10,823.65 crore.  Its shares are listed at a price to earnings multiple of 41.03 and at an earning per share of Rs 8.22.

 

At 10:41 AM, the stock price of the company fell by 7.17 per cent at Rs 338 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.47 per cent to 75,720.63 level.

 

RailTel Corporation is a Navaratna Public Sector Undertaking (PSU) specializing in broadband and VPN services. Established in September 2000, the company aims to develop a nationwide broadband, telecom, and multimedia network while enhancing train control operations and safety systems for Indian Railways. 

 

RailTel's extensive network spans approximately 5,000 railway stations across India, connecting major commercial hubs throughout the country.