RailTel Q4 Results: Multibagger railway PSU's net profit rises 46.3% to ₹113.4 crore, revenue surges 57% YoY

RailTel Q4 Results: RailTel Corporation of India announced its January-March quarter results for fiscal 2024-25 (Q4FY25) on Thursday, May 1, reporting a rise of 46.3 per cent in net profit to ₹113.4 crore, compared to ₹77.53 crore in the corresponding period last year. The Navratna public sector undertaking (PSU)'s revenue from operations in the fourth quarter of FY25 rose 57 per cent to ₹1,308.28 crore, compared to ₹832.7 crore in the year-ago period.

RailTel became the 22nd company to achieve the Navratna status on August 30, 2024. It provides broadband and VPN services. The railway PSU has delivered multibagger returns to investors over the last three-to-five year periods.

RailTel Q4 Results: Key Metrics

On the operational front, the railway PSU's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the March quarter rose 53.8 per cent to ₹180 crore, compared to ₹117 crore in the same period last year. EBITDA margin was 13.73 per cent, compared to 14 per cent, reporting a drop of 27 basis points (bps).

In the preceding December quarter of FY25, RailTel Corporations' net profit stood at ₹65 crore. Revenue from operations came in at ₹767.6 crore in the third quarter of FY25. RailTel's EBITDA in the previous December quarter stood at ₹121 crore, while EBITDA margin came in at 15.8 per cent.

RailTel Share Price Trend

On Thursday, shares of RailTel opened at ₹304.60 and dropped four per cent to hit an intra day low of ₹293, before settling 2.60 per cent lower at ₹296.25 apiece on the BSE. The railway PSU commands a market cap of ₹9,507.80 crore. Shares of RailTel have pluned five per cent in the last five sessions, four per cent in one month, and 27 per cent year-to-date (YTD).

RailTel has delivered 174 per cent returns in the last three years and 215 per cent in the last five years. RailTel has declared 10 dividends since March 31, 2021. In the past 12 months, RailTel has declared an equity dividend amounting to ₹3.85 per share. At the current share price of ₹296.0500, RailTel's dividend yield is 1.30 per cent.

RailTel was established in September 2000 with the objective of creating a nationwide broadband, telecom and multimedia network, and to modernise the train control operation and safety system of Indian Railways. RailTel's network passes through 5,000 stations in India, covering all major commercial centres.

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