RailTel Secures Rs 79.8 Crore Order From Maharashtra Housing Body

RailTel Corp. on Tuesday received an order worth Rs 79.8 crore from the Maharashtra Housing and Area Development Authority. The project needs to be executed by Jan. 15, 2025, according to an exchange filing on Tuesday.

In September, RailTel received an order worth Rs 156 crore from the Maharashtra Rural Development Department. The Rs 156-crore order involved operationalisation of ASSK-GP projects in Konkan, Pune, and Nashik regions.

On Sept. 2, the telecom infrastructure provider was awarded the Navratna status, making it the 22nd central public sector enterprise to achieve this prestigious designation. Other companies that received the Navratna status alongside RailTel include Satluj Jal Vidyut Nigam Ltd., National Hydroelectric Power Corp. and Solar Energy Corp. The top public sector undertakings in India, distinguished by their financial and operational prowess, are considered Navratna companies.

RailTel Corp. reported a 27% rise in its profit at Rs 48.7 crore for the first quarter of the current financial year. This compares to Rs 38.4 crore for the same period last year.

The company posted a revenue of Rs 558.1 crore, indicating a 19% rise for the three months ended June 30, as against Rs 467.6 crore in the corresponding quarter of the last financial year.

The New Delhi-based company's earnings before interest, tax, depreciation and amortisation were at Rs 103.4 crore, denoting a 14.8% surge as compared to Rs 90 crore for the same quarter in the previous fiscal.

Shares of RailTel closed 0.54% lower at Rs 408.10 apiece on the NSE, compared to a 0.28% fall in the benchmark Nifty. The stock has risen 82.64% in the last 12 months and 20.74% on a year-to-date basis.

Of the three analysts tracking the company, one maintains a 'buy' rating on the stock and two recommend 'sell', according to the Bloomberg data. The average of 12-month analysts' consensus price target implies a potential downside of 32%.