Rs 5,280 Crore Order Book: Navratna PSU Telecom Stock Jumps Over 12 Per Cent After Strong Q4 Results Showing 57 Per Cent Revenue Growth and 46 Per Cent PAT Surge
The stock has given negative returns of 17 per cent in 12 months, while the 3-Year Return is 213 per cent.
Share price of RailTel Corporation of India Ltd jumped by over 12 per cent on Friday as the company announced its financial results for the fourth quarter and year ending March 31, 2025. The traders reacted to the strong results of the company and optimism was seen in sthe tock price.
In the Quarterly Results of March 2025, the company reported a revenue of Rs 1,308.28 crore, reflecting a YoY growth of 57.11 per cent compared to Rs 832.70 crore in March 2024. The operating profit stood at Rs 179.63 crore, marking a 54.12 per cent increase from Rs 116.55 crore in the same quarter last year. The profit after tax (PAT) rose by 46.33 per cent to Rs 113.45 crore from Rs 77.53 crore in March 2024.
In FY24, the company posted a revenue of Rs 3,477.50 crore, registering a 35.43 per cent growth compared to Rs 2,567.82 crore in FY24. The net profit for the year stood at Rs 299.81 crore, up 21.77 per cent from Rs 246.21 crore in the previous financial year.
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RailTel Corporation of India Ltd., established in 2000, is a Navratna PSU under the Government of India, focusing on broadband, VPN services, and telecom infrastructure. The company operates a Pan-India optic fibre cable network, covering over 62,000 route kilometres and serving 70 per cent of the population.
RailTel's business is divided into two main segments: Project Work Services and Telecom Services. The Project Work Services segment, which includes telecom and IT projects, has seen significant growth, contributing 59 per cent to the company's revenue in Q1 FY25. The Telecom Services segment, offering a range of telecommunication services, has also shown steady growth. RailTel's network infrastructure spans across 7,325 stations, providing high-speed connectivity to educational institutions and commercial centres. The company is expanding its data centre business and has strategic partnerships to explore opportunities in South Africa and other regions. With a strong order book and plans for further expansion, RailTel aims to achieve a revenue growth of 25-30 per cent in FY25.
The stock has a 52-Week High of Rs 596.8 and a 52-Week Low of Rs 275.9. Market capitalisation stands at Rs 9,941.07 crores. The 1-Year Return is -17 per cent, while the 3-Year Return is 213 per cent.
With a PE ratio of 38.4, the company trades at a discounted valuation compared to the industry PE of 39.9. The company has ROCE of 21.8 per cent and ROE of 16.4 per cent.
Investors must keep this Mid-Cap railway stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.