Big order win: This miniratna company has secured an order worth an estimated Rs 700 crore!
Evident in its exceptional performance over the past year, yielding a remarkable 75 per cent surge
Railtel Corporation of India Ltd, a "Miniratna" Public Sector Enterprise (PSE) under the aegis of the Government of India, stands as a beacon of success and growth in the finance landscape. Its remarkable journey is underscored by its recent feat of delivering impressive returns, surpassing 80 per cent from its March 2023 nadir. A testament to its resilience and strategic prowess, the company's stock has adhered to an upward trajectory, consistently establishing higher highs and higher lows. The pinnacle of this ascent was marked by a recent achievement - a 52-week pinnacle of Rs 180.80.
The impending market focus on Tuesday stems from Railtel's consequential announcement post-market closure. The company has revealed a substantial contract secured from Pimpri Chinchwad Smart City Limited (PCSCL), Pune, casting a spotlight on Railtel's prowess in rendering end-to-end services for the monetization of PCSCL's urban network infrastructure. A transformative move, this engagement operates on a 'revenue sharing model,' ensuring a yearly minimum revenue commitment of Rs 32.40 crore. This commitment is fortified by a fixed annual share of Rs 324 crore to be apportioned to PCSCL over a decade. Notably, an additional revenue stream is harnessed, equating to 21 percent of generated revenue, up to a cap of Rs. 1000 crore.
Anticipated annual revenues, tabulated at Rs 70 crore, culminate in a cumulative 10-year revenue projection of Rs 700 crore. Underpinning this prosperous trajectory is Railtel Corporation of India's robust and sustainable order book, aggregating to an impressive Rs 4,500 crore. A testament to its ongoing prowess, the first quarter of FY24 witnessed a commendable addition - a substantial order worth Rs 527 crore. Moreover, the past six months alone have borne witness to a series of substantial orders totaling approximately Rs 1,600 crore.
The spectrum of these achievements encompasses pivotal contracts secured from various domains, reflecting Railtel's diverse proficiency. Highlights include a noteworthy Rs 294 crore from Tamil Nadu State Marketing Corporation Limited (TASMAC), Rs 48 crore from Central Bank of India, Rs 18 crore from the Commercial Tax Department Lucknow, and Rs 21.5 crore from Indian Oil Corporation. This versatile portfolio also encompasses a significant Rs 75 crore endeavor pertaining to office implementation across varied government organizations. A groundbreaking contribution emerges from an INR 39 crore agreement with the National Informatics Centre Services Incorporated (NICSI), dedicated to providing cutting-edge solutions for the Immigration, Visa, Foreigners, Registration, and Tracking (IVFRT) Project of the Ministry of Home Affairs.
Railtel Corporation of India's stock has showcased an unwavering trajectory of success, evident in its exceptional performance over the past year, yielding a remarkable 75 per cent surge. Mirroring this resilience, the year-to-date statistics reflect a commendable 36.5 percent upswing, reinforcing the company's market presence and ability to deliver value to its stakeholders.