Shares of RailTel Corporation of India have notched over 10% gains over two straight sessions as investors continued to lap up the stock after the company reported stellar earnings for the March quarter.
Despite the strong headline numbers, RailTel Corp's operating margins fell slightly on account of higher project costs
Shares of RailTel Corporation of India have notched over 10% gains over two straight sessions as investors continued to lap up the stock after the company reported stellar earnings for the March quarter.
The Navratna PSU company’s net profit surged 46.3% on year to Rs 113.4 crore in Q4, up from the Rs 77.5 crore that it clocked in the same quarter of the previous fiscal. Alongside the strong bottomline, revenue also jumped 57% to Rs 1,308.3 crore as against Rs 832.7 crore in the year ago period.
On a segmental basis, telecom services delivered a near 7% growth in revenue to Rs 358.75 crore while contribution from project work services nearly doubled on year to Rs 949.53 crore in Q4.
Despite the strong headline numbers, the company’s EBITDA margin contracted slightly to 13.73% in Q4, down 27 basis points from 14% in the year-ago quarter. The slight fall in the operational performance was due to higher project expenses and increased depreciation, amortization and impairment costs incurred in the quarter gone by.
The surge in shares of RailTel Corp were also carried by a sharp spike in trading volumes. As much as two crore shares of the PSU company changed hands on the exchanges thus far, already much ahead of the one-month daily traded average of 19 lakh shares.
The stock had also witnessed a rollercoaster ride last year, going from riches to rags as market sentiment took a hit in the second half of 2024. After a relentless rally in shares of RailTel Corp as part of the PSU boom in the market that started two years ago, the stock faced severe profit booking in the last six month. The sharp selloff brought the stock nearly 50% lower than its record high.
Earlier this week, the company also bagged an order worth Rs 90 crore from the Institute of Road Transport. The scope of the project includes the design, development, supply, implementation, operations and maintenance of the Enterprise Resource planning system(ERP) for MTC Ltd. Chennai, TNSTC-Coimbatore and TNSTC Madurai.