Railtel Corporation of India Ltd

About

RailTel is a "Miniratna" PSE of Government of India focusing on providing broadband and VPN services. RailTel was formed in 2000, with the objective of creating nationwide broadband, telecom and multimedia network, to modernize train control operation and safety system of Indian Railways. RailTel's network passes through around 5,000 stations across the country, covering all major commercial centers

Key Points

Business Objective[1]
a) The company's main objective is to facilitate Railways in modernizing their operation and safety systems and network by providing communication infrastructure.
b) To plan, build, develop, operate and maintain a nationwide broadband telecom and multimedia network to supplement national telecom infrastructure and to spur the growth of telecom, broadband, and IT-enabled value-added services in all parts of the country especially rural, remote, and backward areas.
c) To generate revenue through commercial usage of its telecom network

Read More
  • Market Cap 3,760 Cr.
  • Current Price 117
  • High / Low 190 / 105
  • Stock P/E 20.3
  • Book Value 45.6
  • Dividend Yield 1.88 %
  • ROCE 14.1 %
  • ROE 10.2 %
  • Face Value 10.0

Pros

  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 48.41%

Cons

  • Company has a low return on equity of 11.34% for last 3 years.
  • Company has high debtors of 204.55 days.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
270 393 254 283 411 430 307 358
196 286 197 211 286 357 247 249
Operating Profit 74 106 57 72 125 73 60 110
OPM % 28% 27% 23% 26% 30% 17% 19% 31%
Other Income 8 -36 7 9 7 10 9 23
Interest 2 2 1 1 0 2 1 1
Depreciation 27 37 41 41 38 40 39 40
Profit before tax 53 31 22 40 94 41 28 91
Tax % 19% 26% 27% 27% 26% 33% 24% 26%
Net Profit 43 23 16 29 70 27 21 68
EPS in Rs 1.35 0.71 0.51 0.91 2.17 0.85 0.66 2.10

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
578 850 987 1,003 1,128 1,378 1,506
372 591 712 701 794 1,050 1,139
Operating Profit 206 259 274 302 334 327 367
OPM % 36% 30% 28% 30% 30% 24% 24%
Other Income 70 52 44 35 -12 33 48
Interest 1 1 4 8 7 4 4
Depreciation 81 116 119 112 131 159 157
Profit before tax 195 194 196 218 185 197 254
Tax % 47% 33% 20% 38% 24% 28%
Net Profit 103 130 158 135 141 142 186
EPS in Rs 3.20 4.06 4.92 4.22 4.40 4.44 5.78
Dividend Payout % 40% 34% 11% 47% 48% 50%
Compounded Sales Growth
10 Years: %
5 Years: 19%
3 Years: 12%
TTM: 25%
Compounded Profit Growth
10 Years: %
5 Years: 7%
3 Years: -3%
TTM: 32%
Stock Price CAGR
10 Years: %
5 Years: %
3 Years: %
1 Year: %
Return on Equity
10 Years: %
5 Years: 12%
3 Years: 11%
Last Year: 10%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
321 321 321 321 321 321 321
Reserves 764 838 932 968 1,048 1,092 1,143
Borrowings 0 0 0 5 43 30 35
1,135 1,162 1,066 933 986 1,267 1,165
Total Liabilities 2,220 2,321 2,319 2,228 2,398 2,710 2,663
711 694 688 790 789 760 762
CWIP 262 359 364 300 253 215 195
Investments 0 0 0 7 0 0 0
1,247 1,268 1,267 1,131 1,356 1,735 1,706
Total Assets 2,220 2,321 2,319 2,228 2,398 2,710 2,663

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
173 349
-48 -123
-62 -110
Net Cash Flow 63 116

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 167 161 173 167 164 205
Inventory Days
Days Payable
Cash Conversion Cycle 167 161 173 167 164 205
Working Capital Days 172 112 -18 -37 -10 -14
ROCE % 17% 17% 18% 18% 14%

Shareholding Pattern

Numbers in percentages

Mar 2021 Jun 2021 Sep 2021
72.84 72.84 72.84
3.02 2.71 2.59
5.24 4.24 5.96
18.90 20.20 18.60

Documents