Shares of RailTel Corporation of India surged over 12 percent to reach Rs 488 per share on June 21, approaching its 52-week high of Rs 491 apiece.

This significant uptick followed the announcement that the company had secured a work order valued at Rs 20.22 crore from the South Central Railway.

This order pertains to telecommunications work for providing IP-MPLS in the Secunderabad division, spanning 523 route kilometres, with an expected completion date of June 18, 2025.

The robust performance of RailTel’s shares this year is noteworthy, with a remarkable increase of over 44 percent, substantially outperforming the benchmark Nifty 50 index, which has risen by only 8 percent over the same period.

This latest work order adds to a series of contracts secured by RailTel this month.

Earlier in June, the company announced significant work orders from Tamil Nadu Fibrenet Corporation, the National Informatics Centre Services, and the Ministry of Defence, underscoring its strong presence and demand in the telecommunications and information technology sectors.

In the quarter ending March 2024, RailTel reported a 3 percent year-on-year increase in profit after tax, amounting to Rs 77.5 crore compared to Rs 75 crore in the corresponding period of the previous year.

The company also reported a substantial increase in total income, which stood at Rs 852 crore for Q4FY24, up from Rs 707 crore in the same quarter of the previous year.

This growth reflects RailTel’s expanding operations and its ability to secure and execute large-scale projects effectively.

RailTel Corporation offers a wide array of services, including telepresence services, data center services, MPLS-VPN, internet leased lines, consultancy services, signaling services, and Aadhaar-based services.

The company boasts an extensive network that spans approximately 5,000 railway stations across the country, connecting all major commercial hubs.

Furthermore, in collaboration with Google, RailTel has played a pivotal role in providing free WiFi access at select railway stations, enhancing connectivity and access to digital services for millions of passengers.

With its continuous receipt of high-value contracts and its robust financial performance, RailTel Corporation is well-positioned for sustained growth and expansion in the telecommunications and information technology sectors.

The company's strategic initiatives and partnerships highlight its commitment to leveraging technology to improve connectivity and service delivery across India.