Railtel Coporation of India hosted a conference call on Oct 30, 2024. In the conference call the company was represented by Sanjai Kumar: Chairman and Managing Director.

Key takeaways of the call

Order book currently stands at Rs 5254 crore. Of the current order book the share of Indian Railways is about 14.37%  (or  Rs 1169 crore).

Further of the total order book the nominated orders were of Rs 550 crore and Rs 4000 crore is through competitive tenders

For FY25, maintains profitability and revenue growth guidance given earlier.  The company is confident of maintaining 9.5%-10% net margin for fy25.    The company maintains 30% revenue growth guidance for FY25.

The company is successful in bagging signalling orders from Railways. But the company has not participated in the last Kavach tender of IR as the product of the partner of the company is not tested and approved yet. But there is enough opportunity and the company will be participating in the upcoming Kavach orders.

Project business has both high margin projects as well as low margin orders and in a quarter the segment margin depends on orders got executed and billed. Executed 3 projects in Q2FY25 that were of low margin and the company is now carefull in choosing the projects. So quarterly there will be a variation.

Project revenue mix : Rs 104 crore from Indian Railway and 402 crore from non IR in Q2FY25.

Revenue mix telecom segment: NLD Telecom Rs 151 crore (up 8% yoy), ISP revenue was flat at Rs 111 crore as the corresponding previous period had the benefit of G20 event, the IP1 service was Rs 64 crore.

Data Centre: the partner is making good progress. By end of fiscal expect some 4-5 data centres will be in place. Next year we will have more data centres up and operational.

Noida DC  is not included in 108 DC  and it will be from different partner and the company will be inviting modified RFP soon.

DC revenue in Q2FY25 is Rs 27 crore vs Rs 23 crore in Q1FY25 and Rs 12 crore in Q2FY24.