RailTel shares rally 10% after Q4 profit jumps 46% YoY

Shares of RailTel Corporation of India climbed as much as 10% on Friday to Rs 326.80 on the BSE after the state-owned telecom and broadband services provider reported a 46.3% year-on-year rise in net profit to Rs 113.4 crore for the March quarter of fiscal 2024-25.

RailTel’s revenue from operations in Q4FY25 rose 57% to Rs 1,308.28 crore, compared to Rs 832.7 crore a year earlier.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fourth quarter stood at Rs 180 crore, up 53.8% from Rs 117 crore a year ago. However, the EBITDA margin declined 27 basis points to 13.73% from 14% in the corresponding period last year.

In comparison, RailTel had posted a net profit of Rs 65 crore and revenue of Rs 767.6 crore in the December quarter. EBITDA for that period was Rs 121 crore, with a margin of 15.8%.

RailTel shares remain down 19% over the past year and 15% over the past three months. The stock is trading below its 100-day, 150-day, and 200-day simple moving averages. The 14-day Relative Strength Index (RSI) is at 44.4, indicating neither overbought nor oversold conditions. Shares have risen 7% in the past month.

RailTel has declared 10 dividends since March 2021. Over the last 12 months, it announced a total equity dividend of Rs 3.85 per share, translating to a dividend yield of 1.30% based on the stock’s last closing price.A Navratna public sector undertaking, RailTel was established in September 2000 to build a nationwide broadband, telecom, and multimedia network and to modernise train control operations and safety systems for Indian Railways. Its network spans more than 5,000 stations and all major commercial hubs across the country.Also read | Adani Enterprises shares rise 3% after Q4 profit spikes 752% YoY to Rs 3,845 crore

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