Railtel Corporation Of India (RAILTEL) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated turnover reached ₹1,628 crore, with PBT of ₹281 crore, PAT of ₹209 crore and EPS of ₹6.51; growth continued despite pandemic effects and intense competition.

• The nationwide telecom platform spans 60,560 route-km of commissioned OFC, 6,102 Wi-Fi-enabled railway stations and two Uptime-certified Tier III data centres.

• Management aims for sustained FY23 topline growth, supported by a ₹580 crore order book, network upgrades and expansion across broadband, surveillance, data centres and transport systems.

Financial highlights

• Consolidated revenue from operations was ₹1,548.45 crore vs ₹1,377.82 crore YoY; total income was ₹1,627.92 crore vs ₹1,411.29 crore.

• Consolidated PBT was ₹280.62 crore vs ₹197.18 crore; PAT was ₹208.94 crore vs ₹142.45 crore; EPS rose to ₹6.51 from ₹4.44.

• Standalone revenue from operations was ₹1,521.54 crore vs ₹1,337.28 crore; PAT was ₹208.34 crore vs ₹140.41 crore; EPS was ₹6.49 vs ₹4.37.

• Interim dividend of ₹1.75/share was paid; final dividend of ₹0.65/share was recommended, bringing FY22 dividend to ₹2.40/share and ₹77.02 crore in total.

• Consolidated operating cash flow was ₹263.94 crore vs ₹347.54 crore; cash and cash equivalents closed at ₹187.11 crore vs ₹249.74 crore.

Outlook and guidance

• FY23 capex of ₹205 crore was planned for network upgrades; FY22 capex was approximately ₹117 crore, with ₹170 crore of capital commitments also reported.

• Management targeted RailWire growth from 4.72 lakh subscribers to 6 lakh by Mar’23, aided by OTT bundles, more local partners and access to state power-transmission OFC networks.

• Sustained FY23 topline growth was targeted as business normalized and semiconductor supply constraints eased; total order book stood at ₹5,800 crore.

• Edge data centres were planned at 102 Tier II and III locations; development priorities also include cloud, managed services, LTE/4G train control, IoT, surveillance and signalling.