Rs 5,280 Crore Order Book: Railway Telecom Company Declared 2nd Interim Dividend at Rate of 10%

The stock is up by 13 per cent from its 52-week low of Rs 285.20 per share and gave multibagger returns of 230 per cent in 3 years.

Railtel Corporation of India Ltd. has announced a 2nd Interim dividend of 10% of the paid-up share capital, which translates to Rs. 1 per share. The company has set April 2nd, 2025, as the record date for determining eligible shareholders, and the dividend payment or dispatch of warrants is scheduled for April 9th, 2025.

Earlier, RailTel Corporation of India Ltd. has secured two significant domestic work orders from Indian Railways, bolstering its project portfolio; the first, from Northern Railway, involves Indoor and Outdoor Double Distant Signalling Work valued at Rs 28,29,14,088, with a completion deadline of September 6, 2026; the second, awarded by East Central Railway, entails the design, manufacturing, supply, installation, testing, and commissioning of an Electronic Interlocking System of Distributed EI in the Dhanbad Division, amounting to Rs 47,50,05,370, and is to be executed by March 6, 2026.

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 by 13 per cent from its 52-week low of Rs 285.20 per share and gave multibagger returns of 230 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.