Shares of RailTel Corporation of India continued their upward momentum for a second consecutive trading day on Friday, rising by 12.50% to reach ₹488 each, approaching their previous record high of ₹494.41 set in February.

In the previous session, the stock had increased by nearly 2% following the announcement that the company had secured a ₹20 crore contract from South Central Railway.

This contract involves telecommunications work to implement IP-MPLS across 523 RKM of the Secunderabad division. RailTel has also clinched several substantial contracts this month, including a ₹24 crore agreement with Tamil Nadu Fibrenet Corporation for the supply, installation, integration, testing, commissioning, and maintenance of headend systems.

In addition to its recent achievements, RailTel Corporation of India has secured further significant contracts this month. These include an ₹11 crore order from the Ministry of Defence to establish RailTel Points of Presence (PoP) at customer sites.

Furthermore, the company has clinched a substantial ₹81.46 crore contract from the National Informatics Centre Services. This contract encompasses the supply, installation, configuration, commissioning, integration, operation, and maintenance of information and communication technology (ICT) infrastructure.

Investor response to RailTel’s steady influx of contracts in June has been notably positive, propelling a 15% increase in the company’s share value. Year-to-date, the company’s shares have surged by 40%, following a significant 167% return in the calendar year 2023.

RailTel, classified as a “Mini Ratna (Category-I)” Central Public Sector Enterprise, is a prominent player in the field of information and communication technology (ICT) services. It operates one of India’s largest neutral telecom infrastructure networks, encompassing extensive optic fiber coverage across both urban and rural areas.

Founded on September 26, 2000, RailTel Corporation of India aimed to modernize existing telecom infrastructure, particularly enhancing systems for train control, operation, and safety.

Concurrently, it sought to diversify revenue streams through a nationwide broadband and multimedia network initiative. This involved strategically laying optical fiber cables along railway tracks, leveraging existing right of way.

For the fourth quarter of the fiscal year 2023-24 (Q4FY24), RailTel reported a net profit of ₹78 crore, marking a 4% increase from ₹74 crore in the previous year. Revenue from operations for the same period rose by 19.51% year-over-year to ₹833 crore.

Over the entire fiscal year 2023-24 (FY24), net profit surged by 31.55% year-over-year to ₹246 crore, while revenue from operations increased by 32% year-over-year to ₹2,568 crore.