Telecom infrastructure firm RailTel Corporation of India Ltd on Thursday (January 1) announced that it has received a Letter of Acceptance (LoA) from the Assam Health Infrastructure Development & Management Society (Ahidms) for a major project.
The order pertains to the procurement, implementation, and maintenance of a Hospital Management Information System (HMIS) and is awarded by a domestic entity. The estimated size of the order is ₹567 crore. The project is scheduled to be executed by January 31, 2032.
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The company confirmed that neither its promoters nor the promoter group or group companies have any interest in the entity awarding the contract. The order does not fall under related party transactions.
Second Quarter Results
The company reported a 4.7% increase in its second-quarter net profit to ₹76 crore from ₹73 crore in the previous year. Its revenue for the second quarter increased 12.8% to ₹951.3 crore from ₹843.5 crore last year. Growth during the quarter was led by the project work services business, which, however, is a low-margin business.
RailTel’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased 19.4% to ₹154.4 crore from ₹129.3 crore in the second quarter last fiscal. Its EBITDA margin expanded to 16.2% from 15.3% in the year-ago period. Operating cash flow for the company was negative at the end of the September quarter due to adverse working capital requirements.
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Revenue from the telecom services business grew by 9% from last year to ₹367.5 crore, while its Earnings Before Interest and Tax increased by 23% to ₹102.5 crore. EBIT margin for this business expanded to 27.9% from 24.6% last year. The Project Work Services business saw revenue growth of 16% and EBIT growth of 35% year-on-year. Margins also expanded to 3.9% from 3.4% last year.
Shares of Railtel Corporation of India Ltd ended at ₹370.95, down by ₹0.16, or 0.60%, on the BSE.
