 "RailTel")
Shares of RailTel Corporation of India soared 9.2 per cent at Rs 474 per share on the BSE in Friday’s early morning deals. The company’s stock has zoomed 61.3 per cent in the last six months, while rallying 264.29 per cent in the last one year.
The recent stock price jump, however, came after the company received a work order from South Central Railway.
On Thursday, the state owned railway telecommunications company revealed in an exchange filing that the work order worth Rs 20.22 crore is for telecommunication works for provision of IP-MPLS in 523RKM of secunderabad division of South Central Railway. The project will be executed by 18, June 2025.
In the January-March quarter of fiscal year 2023-24, RailTel reported a 3 per cent increase in profit after tax (PAT) to Rs 77.53 crore, compared to Rs 75.24 crore in the corresponding period of the previous year.
The Mini Ratna company under the Railway Ministry disclosed a total income of Rs 852 crore for the last quarter of 2023-24, up from Rs 707.29 crore in the year-ago period, according to an exchange filing.
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For the fiscal year ending on March 31, 2024, RailTel achieved a total income of Rs 2,622 crore and a total PAT of Rs 246 crore, marking a growth of 31 per cent in both turnover and profits compared to the previous year.
Formed in 2002, to modernise train control operation and safety system of Indian Railways, RailTel is an Indian public sector enterprise which provides broadband and VPN services.
At 10:02 AM; the stock of the company was trading 9 per cent higher at Rs 473 per share on the BSE. In comparison, the BSE Sensex rose by 0.14 per cent. At present, the shares of the company are trading at a price to earnings multiple of 58.86 times.
