RailTel Corporation of India Ltd, one of the largest telecom infrastructure providers in India, has secured a significant order worth ₹134.5 crore from Adani Connex Private Limited for implementing an Advanced Smart Metering Infrastructure Project. The contract will involve developing and deploying smart metering solutions over a 10-year period, from September 27, 2024, to September 26, 2034. This project aims to modernize energy metering and enhance energy management for consumers.
Stock Performance and Market Position
The stock closed at ₹467.60 on September 27, 2024, slightly lower by 0.15%. RailTel’s share price has delivered impressive returns of over 113.56% in the past year. The company’s market capitalization stood at around ₹14,250 crore as of January 17, 2024, and it has seen a nearly 250% increase in share price over the last three years.
Here’s a snapshot of RailTel’s recent share price movements:
| Date | Open | Close | Day’s Change |
|---|---|---|---|
| Fri, Sep 27 | ₹475.00 | ₹468.30 | +1.45% |
| Thu, Sep 26 | ₹455.30 | ₹461.60 | +1.79% |
| Wed, Sep 25 | ₹464.00 | ₹453.50 | -2.25% |
| Tue, Sep 24 | ₹469.00 | ₹463.95 | -1.05% |
| Mon, Sep 23 | ₹477.80 | ₹468.85 | -1.83% |
| Fri, Sep 20 | ₹452.50 | ₹477.60 | +5.92% |
| Thu, Sep 19 | ₹466.80 | ₹450.90 | -2.93% |
| Wed, Sep 18 | ₹475.00 | ₹464.50 | -1.90% |
About RailTel Corporation of India
RailTel, a “Mini Ratna” public sector enterprise under the Ministry of Railways, was established in 2000. The company owns a pan-India optic fiber network and is primarily engaged in providing telecommunication services to Indian Railways. With a network spanning over 6,000 stations and 61,000+ km of fiber optic cables, RailTel reaches 70% of India’s population. As of June 2024, the company’s order book stands at ₹4,682 crore.
Other Key Contracts and Achievements
Apart from the smart metering contract with Adani Connex, RailTel has secured multiple orders across sectors:
- A contract worth approximately ₹155.7 crore from the Rural Development Department, Maharashtra, for the ASSK-GP project.
- A ₹48.7 crore contract from Health Insurance TPA of India Ltd. for developing an Integrated Claims Management Solution Portal and Mobile Application.
- Several contracts from Northern Railways valued between ₹10.92 crore to ₹19.69 crore for railway telecom projects and feeder routes.
RailTel also recently achieved “Navratna” status, recognizing its significant contributions to the Indian economy and allowing greater autonomy for decision-making and financial flexibility.
Financial Performance
- Quarterly Results: In Q1FY25, RailTel reported net sales of ₹467.61 crore, a 24.1% increase compared to Q1FY24. Net profit rose by 48.5% to ₹38.39 crore.
- Annual Results: For FY24, net sales increased by 31.2% to ₹2,567.82 crore, and net profit grew by 30.8% to ₹246.21 crore compared to FY23.
Outlook and Implications
The acquisition of major contracts across diverse sectors, including the smart metering project, positions RailTel as a significant player in telecom infrastructure and technology services. Its strong financial performance, growing order book, and recognition as a “Navratna” company signal potential for sustained growth and market expansion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
