RailTel Corporation Ltd, a state-owned company specializing in telecommunications and IT, witnessed a significant surge in its shares, reaching a new 52-week high of Rs 182.65 on the Bombay Stock Exchange (BSE). This boost comes on the heels of RailTel securing a lucrative 10-year contract worth Rs 700 crore from Pimpri Chinchwad Smart City Ltd (PCSCL).
The public sector undertaking of the Indian Railways secured the 10-year end-to-end services deal from PCSCL, headquartered in Pune, Maharashtra. The deal revolves around the monetization and end-to-end service of CT network infrastructure, and it’s been awarded on a Revenue Sharing Model. The contract’s estimated annual income stands at Rs 70 crore, culminating in a total contract value of Rs 700 crore.
RailTel’s shares opened slightly higher at Rs 176.25 on Tuesday and experienced a remarkable ascent of over 5%, achieving the new 52-week high level. Over the past month, the company’s stock has surged by more than 33%, while its three-month growth stands at over 46%.
The contract win highlights RailTel’s pivotal role in the advancement of smart city initiatives, particularly its engagement with PCSCL. The partnership encompasses a decade of service provision, underscoring the company’s expertise and commitment in driving technological progress within urban landscapes.
In its financial results for the quarter ending June 30, 2023, RailTel Corporation reported a consolidated net profit of Rs 38.39 crore, marking a robust 48.5% YoY increase from the previous year’s Rs 25.85 crore. The company’s consolidated net sales also exhibited impressive growth, soaring by 24.08% to Rs 467.6 crore compared to the corresponding quarter of the previous year.
Furthermore, RailTel’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the June 2023 quarter amounted to Rs 89.27 crore – an 18.7% rise from the Rs 75.19 crore recorded in the same period the previous year.
Shares of RailTel Corporation continued their positive trajectory, trading 2.11% higher at Rs 176.65 apiece on the BSE at 1:47 PM on Tuesday. This latest achievement not only underscores the company’s strategic prowess but also its integral role in driving digital connectivity and technological transformation in urban development.
