RailTel share spurts 3% on new order win

Share of RailTel rose over 3 per cent to hit an intraday high of Rs 134.80 on BSE after the company said it has received Rs 119.72 crore order from Bharat Coking Coal Limited (BCCL).

The order relates to implementation of MPLS-VPN services along with miscellaneous services at 340 locations of BCCL for five years.

The share has gained 13 per cent in the last month. The stock opened 0.57 per cent higher at Rs 131.50 against the previous close of Rs 130.75 on BSE. Market cap of the firm rose to Rs 4,300.57 crore.

The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

Recently, the company also received a work order from Cotton Corporation of India Limited, for hiring on-cloud Data Centre hosting for Hardware and Software along with migration of Oracle EBS and other applications.

The total cost for five years contract period would be Rs 11.99 crore exclusive of applicable GST.

Revenue from operations for third quarter ended December 2020 stood at Rs 411 crore registering a growth of 45 per cent on a quarter-on-quarter basis and 52 per cent on a year-on-year basis.

"Covid 19 pandemic has compelled the business to go digital. Our Retail broadband Service- RailWire, video conferencing service, IBW, VPN services has seen excellent traction, and the trend is likely to continue," said Puneet Chawla, Chairman and Managing Director of RailTel.

"We have seen demand growth for our Data Centre business as well and with RailTel becoming a MeitY empanelled cloud service provider, we are expecting more business in this area as well," he noted.

"We already have a recurring income of around 500 Cr plus and a healthy order book of projects to be delivered over the next 3-4 years," he added.

RailTel is one of the largest neutral telecom infrastructure providers in the country owning a Pan-India optic fiber network covering several towns, cities, and rural areas of the country.