RailTel Telecom Revenues Grow With Strong Growth in ISP Services

The telecom revenues of RailTel were up 29.3% YoY to Rs 2.7 billion. The increase in revenue has been driven because of the surge in the internet service provider (ISP) segment.

Highlights

  • RailTel Corporation recently reported its Q2 FY22 profits at Rs 675 million.
  • Strong subscriber addition in RailWire helped the average revenue per user (ARPU) to grow to Rs 500.
  • RailTel will see strong revenue growth even in the coming half of FY22.

Follow Us

RailTel

RailTel Corporation recently reported its Q2 FY22 profits at Rs 675 million. It is a 29% YoY growth because of the rise in telecom revenues and reversal of ECL provisioning. The company’s project revenues did not grow in the first half of FY22, but the company is positive about the remaining half. With the growth momentum the company has, ICICI Securities said that RailTel is guided for at least 25% higher revenues in the FY22. Since listing, the company has grown by 25%, which is a healthy sign. RailTel is also eyeing projects worth Rs 70 billion to Rs 100 billion from the Railways for implementing high-speed data connectivity on the 700MHz band. The company is further planning to expand the towers to 5,000 from the current 1,100. ICICI Securities has maintained its ‘Buy’ call on the company and has increased earnings per share (EPS) by 5.3% / 4% for FY22E / FY23E.




RailTel Telecom Revenues Grew Because of Strong Growth in ISP Services

The telecom revenues of the company were up 29.3% YoY to Rs 2.7 billion. The increase in revenue has been driven because of the surge in the internet service provider (ISP) segment. For the unaware, RailTel has an ISP arm called RailWire.

Strong subscriber addition in RailWire helped the average revenue per user (ARPU) to grow to Rs 500. The total number of subscribers in the quarter grew to 422,000 as compared to 318,000 in FY21.

ICICI Securities report mentions that RailTel will see strong revenue growth even in the coming half of FY22. This is due to certain projects that the company is expecting to execute from the Railways and coal companies. The company’s telecom services earnings before interest and tax (EBIT) grew 75% YoY to Rs 707 million.

In H2 FY22, the company expects revenue growth of 25% compared to H1 FY22 growth of 23.8%. Telecom revenues of the company should grow further as more projects are completed.

Reported By

Editor in Chief

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Recent Comments

Faraz :

Yeah, pillar is not issue for me, but if that's water pipe, then it's a bad decision. & Those tower…

Jio Delivers Data at 15 Cents a GB: Mukesh Ambani…

TheAndroidFreak :

Off Topic : ITEL S25 4G - Unisoc T620 - 8GB/128GB - 50MP - 5000/18W - November 10th!

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

TheAndroidFreak :

Samsung plans to shut down 50% of production lines at its chip foundry business to cut costs amid sluggish orders…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

TheAndroidFreak :

Off Topic : POCO X7 Expected specs: - Dimensity 7300 - 6.67" Curved AMOLED, 1.5k, 120Hz - 50MP + 8MP…

OnePlus 13 and Xiaomi 15 to Feature Qualcomm Snapdragon 8…

Shivraj Roy :

i have seen this site since 2022 btw these are under metro 1 pillars

Jio Delivers Data at 15 Cents a GB: Mukesh Ambani…

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments