RailTel Corp stock rises 4% on receipt of work order from Indian Railways

Shares of RailTel Corp climbed 4 per cent amid a falling market today after the state-owned firm said it has received work order from South Western Railway at a total cost of Rs 107.44 crore. RailTel Corp stock rose 4.02 per cent intra-day to Rs 108.70 against the previous close of Rs 104.50 on BSE.

The stock opened 3.92 per cent higher at Rs 108.60 today. It has gained after four sessions of consecutive fall. RailTel Corp stock is trading higher than 50 day moving averages but lower than 5-day, 20-day, 100-day and 200-day moving averages. The small cap share has lost 11.19 per cent in a year and fallen 9.37 per cent this year.

Market cap of the firm rose to Rs 3,390.71 crore.

Total 0.76 lakh shares of the firm changed hands amounting to a turnover of Rs 81.16 crore. The stock hit a 52-week high of Rs 164.70 on June 10, 2021 and fell to a 52-week low of Rs 84 on March 31, 2022.  

Meanwhile, Sensex was trading 450 points lower at Rs 56,525 and Nifty slipped 135 points to 16,933 in the afternoon session.

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"RailTel Corporation has received work order from South Western Railway for design, planning, supply, installation, fixing, configuration, integration and commissioning of a secure, reliable, scalable, manageable and converged communication system for 230 plus stations at the total cost of Rs 107.44 crore," the firm said in a communication to bourses.

The entire work shall be completed within a period of 12 months, it added.

The firm clocked a 5.24 per cent fall in consolidated net profit to Rs 66.01 crore in the quarter ended December 2021 against a profit of Rs 69.66 crore in the year-ago period.

Net profit slipped 2.21 per cent from Rs 67.50 crore on a quarter-on-quarter basis.

However, sales rose 1.73 per cent to Rs 417.69 crore in the December quarter against Rs 410.60 crore in the corresponding quarter of last fiscal. On a quarter-on-quarter basis, sales climbed 16.51 per cent from Rs 358.29 crore. Operating profit excluding other income fell 43.26 per cent to Rs 70.84 crore in the December quarter against Rs 124.85 crore in the corresponding quarter of previous fiscal.

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RailTel Corporation is a Mini Ratna (Category-I) PSU and is one of the largest neutral telecom infrastructure providers in the country owning a pan-India optic fiber network on exclusive right of way (ROW) along railway track. The company's segments include telecom services and and project work services.