RailTel Corporation of India on Friday got listed on NSE with a premium of 16 percent against its issue price of Rs 94 apiece. Notwithstanding the selloff in the broader market, the stock made a debut at Rs 109, reflecting a gain of 15.95 percent as compared to the issue price on NSE.

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Reema Tendulkar spoke to Puneet Chawla, CMD of RailTel about how the year is shaping up and what are their growth expectations for the next couple of years.

Chawla said, “We are shaping up very well, we are up by 15 percent in half year of FY21, but after nine months we have grown much higher. At the end of the year you will see spectacular results which we will be coming out with. Expect this growth to continue in the coming year FY22 also, and it will be much more than this 15 percent of the half year of FY21.”

On orderbook he said current order book is around Rs 4,000 crore and it is increasing day by day.

Talking about margins from various projects Chawla said, “In the railway sector whatever projects we execute, we get 8.5 percent margin over the total cost of the project. For other government sector it varies, like BharatNet which we are executing, we are getting 16.5 percent, for other projects it varies but it will be in the range of 10-15 percent or so.”

He further added, “In the telecom services which we offer the margin is higher because after executing projects, we maintain them for number of years.”

For full management commentary, watch the video

(Edited by : Abhishek Jha)

First Published:Feb 26, 2021 2:04 PM IST