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This Article is From Aug 16, 2021

RailTel Q1 Review - Expected Credit Loss Provisioning Hurt Ebitda: ICICI Securities

RailTel Q1 Review - Expected Credit Loss Provisioning Hurt Ebitda: ICICI Securities

RailTel Q1 Review - Expected Credit Loss Provisioning Hurt Ebitda: ICICI Securities
A worker adjusts a large banner advertising, “Fast WI-FI, for everybody”, at Mumbai Central railway station in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
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Railtel Corporation of India Ltd
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BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Railtel Corporation Of India Ltd.'s Q1 FY22 Ebitda was hit due to:

  1. Covid-19 led lockdown, which reduced revenue execution by Rs 500 million in telecom services and projects; and

  2. expected credit losses provisioning of Rs 302 million.

RailTel remains confident of acceleration in revenue growth in the coming quarters as enquires have started increasing, and incremental ECL provisioning for full-year FY22 is expected to be only Rs 100 million.

Projects orderbook has grown by Rs 3.41 billion and the total orderbook now stands at Rs 40 billion, which provides visibility on future revenue growth.

The biggest trigger for Railtel is Indian railways' deployment of long term evolution network and consequent large orders.

This will also help build a good tower business for the company with annuity revenues.

Click on the attachment to read the full report:

ICICI Securities Railtel Q1FY22 Results Update.pdf
VIEW DOCUMENT

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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