RailTel Q4 Review - Rising Opportunities From Indian Railways: ICICI Securities

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ICICI Securities Report

Railtel Corp. of India’s Q4 FY21 Ebitda was below our estimate due to provisioning of Rs 330 million and much lower Ebit in the projects business.

Company remains confident of growth in FY22 and has guided for revenue of Rs 20 billion (FY21: Rs 13.8 billion) and sees revenue scaling up to Rs 40 billion in next two to three years.

This ambitious growth expectation founded on strong orderbook of Rs 45 billion, and likely order wins from Indian Railways, which plans a capex of Rs 250 billion for deployment of long term evolution network and implementation of train collision avoidance system.

Project business growth also boosts telecom revenues for connectivity solutions.

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