RailTel Corporation jumps 5% to hit 52-week high on bagging 10-year deal worth Rs 700 crore from Pimpri Chinchwad Smart City

RailTel Corporation Ltd shares registered a new 52-week high of Rs 182.65 apiece on BSE on Tuesday after the company bagged a new order worth Rs 700 crore from Pimpri Chinchwad Smart City Ltd (PCSCL).

The Indian Railways public sector undertaking (PSU) has received a deal for a long-term period of 10 years from PCSCL in Pune, Maharashtra.

Shares of the company opened marginally higher at Rs 176.25 apiece on BSE on Tuesday and surged more than 5 per cent to hit a new 52-week high level. The stock has gained more than 33 per cent in the past one month and over 46 per cent in the past three months.

RailTel Corporation new order details

The state-owned company bagged a 10 year long end-to-end services deal worth a total of Rs 700 crore from Pimpri Chinchwad Smart City for the monetization and end to end service of CT network infrastructure.

The work order has been awarded on a Revenue Sharing Model, and the estimated annual income of the contract is at Rs 70 crore, while the total income of the order stands at Rs 700 crore.

RailTel Corporation June quarter results

For the June 30, 2023, ended quarter, Railtel Corporation reported a consolidated net profit of Rs 38.39 crore, witnessing a strong 48.5 percent rise on a year-on-year (YoY) basis from Rs 25.85 crore posted in the same quarter last year.

Its consolidated net sales in the quarter recorded a double-digit growth of 24.08 percent to Rs 467.6 crore, compared to Rs 376.85 crore in the corresponding quarter of last year.

RailTel’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 89.27 crore in the June 2023 quarter was 18.7 percent higher than Rs 75.19 crore observed in the year-ago period.

Shares of RailTel Corporation were trading 2.11 per cent higher at Rs 176.65 apiece on BSE at 1:47 PM on Tuesday.