RailTel Shares Surge on ₹52.66 Crore UP Police Project Win

23 Aug 2024 , 11:29 AM

RailTel shares surged over 3% in August following the announcement of a new project worth ₹52.66 Crore from the Uttar Pradesh Police Recruitment and Promotion Board.

The project includes implementing live CCTV surveillance, Aadhaar-based biometric controls to prevent impersonation, and digital fingerprint and facial recognition services for written exams and DV&PST processes.

In the quarter ending June 2024, RailTel reported a 25.2% year-on-year increase in net profit, reaching ₹48.7 Crore. Revenue from operations also saw a 19.4% YoY growth, totaling ₹558.1 Crore.

RailTel anticipates a 9-10% growth in telecom revenue for FY25, with project revenue expected to hit ₹2,000 Crore, contributing to an overall revenue growth of 25-30%.

At the time of writing on August 23, 2024 at 11:23 am, shares of RailTel is trading at ₹501 which is a 6.21% gain than the previous close. The stock has rallied 41% year-to-date, significantly outperforming the Nifty’s 13% return during the same period. Over the past 12 months, RailTel’s share price has soared 198%.

RailTel Corporation of India Ltd. is a public sector enterprise providing broadband and VPN services, established in September 2000 to develop a nationwide broadband, telecom, and multimedia network and to modernize the train control operations and safety systems of Indian Railways.

RailTel’s extensive network covers around 5,000 stations across India, connecting all major commercial centers.