Railtel Sees Rs 1,200-1,300 In Revenue Next Year On Robust Order Book: Chairman
The project size of the mini-ratna PSU has been continuously increasing over the past couple of years with a focus on the rail-wire segment, he said.
RailTel Corp. has an order book of over Rs 5,000 crore, and the continuous reception of orders is expected to result in more inflows, according to Chairperson Sanjai Kumar.
"Next year, out of this order book, we are expecting around Rs 1,200–1,300 crore to convert into revenues," Kumar, who is also the managing director tod NDTV Profit in an interview.
The project size of the mini-ratna PSU has been continuously increasing over the past couple of years. The projects will be a mix of telecom and IT, according to Kumar.
"We specifically focus on the rail-wire segment, which is our broadband segment services, and we are now focusing on tier 1 and tier 2 towns," he said.
Outlook On Recent Order Win
RailTel Corp. has received an order of Rs 120.5 crore from the South Central Railway for comprehensive signalling and telecommunication works for provision of automatic block-signalling system. The timeline for the completion of the project is around two years.
"This is brownfield work, and this will help in increasing line capacity of the railway track," Kumar said.
Shares of RailTel jumped as much as 9.81% during the day to a record high of Rs 363.85 apiece on the NSE. The stock has gained over 21% since Dec. 22.
Two out of the three analysts tracking the company have a 'buy' rating on the stock, while one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 25.5%.
