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HomeMarket NewsRailTel Corporation shares soar 12% after revenue, profit hit multi-quarter high in Q4
RailTel's margins saw a marginal contraction from last year to 13.7% from 14% last year. This is due to an 86% escalation in expenses on projects from the same quarter last year.
Shares of state-run RailTel Corporation of India Ltd. surged as much as 12% on Friday, May 2, after its revenue and net profit hit multi-quarter high levels in the March quarter.
Revenue for the Railway PSU increased by 57% from the same quarter last year to ₹1,308 crore.
Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter also increased by 54% year-on-year to ₹179.63 crore.
However, margins saw a marginal contraction from last year to 13.7% from 14% last year. This is due to an 86% escalation in expenses on projects from the same quarter last year.
Net profit for the period also grew by 46% year-on-year to ₹113.45 crore.
Revenue for the Project Work Services vertical nearly doubled from the year-ago quarter to ₹949.53 crore, while telecom services revenue grew by 7% from last year to ₹358.75 crore.
At the end of the March quarter, as many as 5.3 lakh small shareholders, or those with authorised share capital of up to ₹2 lakh, held a 20.11% stake in the company. As of March 2024, that figure stood at 3.68 lakh shareholders, with a 16% stake.
The government continues to hold a 72% stake in RailTel at the end of the March quarter.
With this move on Friday, RailTel has added over ₹1,200 crore to its overall market capitalisation, crossing the mark of ₹10,000 crore again.
Only two analysts have coverage on RailTel and both have a "sell" recommendation on the stock.
Shares of RailTel Corporation of India are trading 12.7% higher on Friday at ₹333.75. Shares are the top gainers on the Nifty 500 index today. The stock is still down 18% so far in 2025 and is still down 46% from its 52-week high of ₹617.
