RailTel net profit rises 60% to Rs 70 crore in December quarter

RailTel Corporation of India on Monday reported a 60.4 per cent rise in its consolidated net profit at Rs 69.6 crore for the quarter ending December 31, 2020. It was Rs 43.23 crore in the same period last year.

The revenue from operations rose by 51.85 per cent to Rs 410.6 crore as against Rs 270 crore in the same period last year.

The Board has declared an interim dividend at the rate of 10 per cent of paid-up share capital, which comes to about Rs 1 per share.

The total expenses of the company increased to Rs 323 crore for the quarter under review. 

"The operations of the company have also been significantly impacted following a coronavirus induced lockdown," RailTel said in an exchange filing.

On Monday, RailTel's scrip rallied 7.20 per cent on NSE to close at Rs 140 after the PSU company received a work order amounting to Rs 153.15 crore from Central Coalfields.

The order entails establishment of MPLS-VPN Network of higher Bandwidth on rental basis for 5 years. The announcement was made during market hours on Monday.

RailTel, a public sector undertaking under the Ministry of Railways (MoR), is an information and communications technology (ICT) infrastructure provider to the government.