Rs 5,280 Crore Order Book: Navratna PSU Company Signs MoU With NBCC (India) Limited
The stock is up over 10 per cent from its 52-week low of Rs 265.30 per share and has given multibagger returns of over 200 per cent in 3 years.
RailTel Corporation of India Ltd. announced a strategic alliance with NBCC (India) Limited through the signing of a Memorandum of Understanding (MoU). This collaborative agreement outlines a five-year commitment to jointly develop Data Centre projects both within India and in overseas markets, encompassing the entire project lifecycle from initial concept to final commissioning. The MoU strategically divides responsibilities, with NBCC taking charge of providing Project Management Consultancy services for the construction of the Data Centre buildings and associated civil and passive infrastructure.
Conversely, RAILTEL will contribute its expertise in the IT-related aspects of these Data Centres. Their responsibilities will span the entire spectrum of IT infrastructure development, including Planning, Designing, Supply, Installation, Testing, Commissioning (SITC), and ongoing Operations & Maintenance (O&M). This synergistic partnership is intentionally structured to capitalize on the distinct strengths of each organization. By effectively combining their core competencies, NBCC and RAILTEL aim to enhance their ability to acquire new clients and streamline their service delivery processes, fostering a long-term and sustainable collaborative relationship.
Earlier, the company had secured a work order from the Ministry of Defence, valued at Rs 16,89,38,002 (inclusive of tax), for Optical Fiber Cable (OFC) laying work. This domestic contract, with terms and conditions as per the purchase order, is to be executed by March 17, 2026.
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Established in 2000, RailTel Corporation of India Ltd (RCIL) is a "Navratna" public sector enterprise under the Indian government, offering diverse telecom services including broadband, VPN, and data centres. With its extensive network spanning over 6,000 stations and 61,000+ km of fibre optic cables, RailTel reaches 70 per cent of India's population. This achievement has led to the prestigious "Navratna" status conferred by the Department of Public Enterprises, Ministry of Finance. This recognition underscores RailTel's substantial contributions to the Indian economy and its position as a leading force in telecommunications and information technology. The "Navratna" status empowers RailTel with greater autonomy, financial flexibility, and the capacity for larger investments, propelling it towards innovation and sustained growth. The company has a market cap of over Rs 10,000 crore.
Quarterly Results: The net sales increased by 15 per cent to Rs 767.62 crore and the net profit increased by 5 per cent to Rs 65.05 crore in Q3FY25 compared to Q3FY24.
Nine-Month Results: The net sales increased by 24 per cent to Rs 2,169.22 crore and the net profit increased by 10 per cent to Rs 186.36 crore in 9MFY25 compared to 9MFY24.
As of December 31, 2024, the company’s order book stands at Rs 5,280 crore wherein Government Nomination Contribution is 22.4 per cent, Tender Contribution is 75.7 per cent and Private Contribution is 1.9 per cent. The stock is up over 10 per cent from its 52-week low of Rs 265.30 per share and has given multibagger returns of over 200 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.