Techno Electric & Eng surges 5% on contract win from RailTel to build EDCs

Share price of Techno Electric & Engineering scaled up to Rs 1700.70, surging 4.84 per cent per share on the BSE in Monday’s intraday trade. This came following a contract win by the firm from state-owned RailTel Corporation of India. 

The contract includes designing, building, financing, operating, and transferring Edge Data Centers (EDCs) across 102 cities in India. The contract extends over a twenty-year period with a possible five-year extension, the company said in an exchange filing on Monday. 
 

An edge data centre is a compact facility situated close to end users, where data is gathered, transmitted, and processed.

 

The infrastructure will benefit Internet Service Providers (ISPs) and Content Delivery Networks (CDNs) by reducing latency and improving speed, thereby enhancing network performance and supporting high-quality, real-time services, the company said in an exchange filing. 

RailTel’s extensive optic fibre cable network, covering over 70 per cent of India’s population, including rural areas, will support this initiative. RailTel, a public sector enterprise, offers broadband and VPN services. 

Meanwhile, Techno Electric & Engineering reported a 45.45 per cent increase in revenue, reaching Rs 443.85 crore for April-June quarter of financial year 2024-25 (Q1FY25) compared to the same period last year. The company’s net profit saw a jump of 288.36 per cent year-on-year, reaching Rs 98.10 crore for Q1FY25. 

The company has a total market capitalisation of Rs 19,422.61 crore. Its shares are trading at a price to earnings multiple of 64.72 times with an earning per share of Rs 25.06 per share.

At 13:03 PM; the share price of the company was trading 4.36 per cent higher at Rs 1692.80. By comparison, the BSE Sensex was trading 0.15 per cent higher at 82,488 levels. 

Techno Electric is an Indian power infrastructure firm engaged in engineering, procurement & construction (EPC), and asset management. It has completed over 400 projects in power generation, transmission, and distribution.

The company also operates in digital infrastructure through its data centre vertical, with an aim to become the largest data centre provider in India by FY2030, with a planned investment of $1 billion.