RailTel Corp. posted a 7% year-on-year rise in net profit in the second quarter of the current financial year.
RailTel's profit increased to Rs 72.6 crore in the quarter ended September as compared to Rs 68.2 crore in the same quarter of the previous fiscal, according to an exchange filing on Monday.
Revenue jumped 41% year-on-year to Rs 843.5 crore in the three months ended September. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 1% to Rs 129.3 crore. The Ebitda margin contracted 600 basis points to 15.3% from 21.3% in the same period the previous year.
The broadband service provider received an order worth Rs 79.8 crore from the Maharashtra Housing and Area Development Authority earlier this month. The order involves providing cloud hosting and managed service to set up, migrate, and manage data centre and disaster recovery site for MHADA on cloud. The project needs to be executed by Jan. 15, 2025.
Last month, 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.
RailTel is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optical fibre network.
Shares of RailTel closed 2.19% higher at Rs 404.25 apiece on the NSE, compared to a 0.65% advance in the benchmark Nifty 50. It has risen 83.04% in the last 12 months and 14.50% on a year-to-date basis.
Out of three analysts tracking the company, one maintains a 'buy' rating on the stock and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 31.4%.
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