Multibagger railway stock in focus today as firm announces final dividend 

RailTel shares are in news today after the PSU announced a final dividend of Rs 0.85 equity per share for its shareholders on June 15. On Friday, the multibagger stock closed in the red at Rs 425.20 per share, down 2.93 per cent against the previous close of Rs 438.05 per share. The PSU stock opened at Rs 426.15 and moved in a range of Rs 438 and Rs 423.55 per share on BSE. The multibagger railway stock has gained 230% in two years and 351% in three years. 

RailTel said, “This Final Dividend is in addition to Interim Dividends of Rs. 2/- per share already paid by the Company for the financial year 2024-25.”

In 2024, the PSU paid dividends of Rs 1 and Rs 1.85 equity per share to its shareholders. Likewise, in 2023, it paid dividend of Rs 1 and Rs 1.05 equity per share.

The PSU didn’t declare the record date for interim dividend.

"Recommendation of Final Dividend at the rate of 8.5% of paid-up share capital (Rs. 0.85/- per share) for the financial year 2024-25. This Final Dividend is in addition to Interim Dividends of Rs. 2/- per share already paid by the Company for the financial year 2024-25. The Final Dividend is subject to the approval of shareholders in the ensuing Annual General Meeting (“AGM”). The Final Dividend would be paid within 30 days from the date of its declaration at the AGM, " said RailTel. 

The Navratna PSU logged a 46.4% year-on-year (YoY) rise in net profit to Rs 113.4 crore in Q4 compared to Rs 77.53 crore reported in the same quarter of the previous fiscal year.  Operating income jumped to Rs 1,308.28 crore, rising 57% YoY compared to Rs 832.7 crore reported in the same year of the last fiscal year. 

On the operating front, the earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 53.8% to Rs 180 crore during the quarter. However, despite the growth, the EBITDA margins during the quarter contracted by 27 basis points to 14% in Q4FY25. The fall in EBITDA margins was due to an 86% increase in expenses that resulted from projects executed in the same quarter last year. 

RailTel Corporation is a Navratna 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 project work services.