Did RailTel Just Secure a Rs 90 Crore Order from the Institute of Road Transport?
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Synopsis
In a significant development, RailTel Corporation has clinched a Rs 90.08 crore order from the Institute of Road Transport, marking a pivotal moment in its operational journey. This extensive contract involves the implementation of a comprehensive ERP system for multiple transport corporations, promising enhanced operational efficiency and management.
Key Takeaways
- RailTel has secured a Rs 90.08 crore order.
- The contract involves an extensive ERP system.
- The project will benefit three transport corporations.
- Completion is targeted by October 2026.
- RailTel's shares have seen significant fluctuations recently.
New Delhi, April 27 (NationPress) RailTel Corporation of India Limited has officially announced that it has secured a significant order valued at Rs 90.08 crore from the Institute of Road Transport.
The scope of this contract includes the design, development, supply, implementation, operations, and maintenance of an Enterprise Resource Planning (ERP) system.
This new system will be deployed for three transport corporations: MTC Limited in Chennai, TNSTC-Coimbatore, and TNSTC-Madurai.
According to a filing with the Bombay Stock Exchange (BSE), RailTel stated, "This is to inform that RailTel Corporation of India Limited has received the work order from the Institute of Road Transport for a work order amounting to Rs 90,08,49,783 (tax included)."
Furthermore, the company clarified that this project is not linked to its promoters and does not represent a related party transaction.
The completion of this project is anticipated by October 18, 2026. This win follows a recent Rs 25.15 crore order awarded by Hindustan Petroleum Corporation Limited (HPCL) in March.
Earlier in February, RailTel also secured a Rs 288 crore contract to implement the Kavach anti-collision system across 71 stations.
The Kavach system is a sophisticated automatic train protection mechanism designed to avert train collisions. It autonomously applies brakes if a train disregards a signal at danger or if there is a potential collision risk.
On the BSE, RailTel shares closed nearly 5 percent lower on Friday, finishing at Rs 301.60, down from Rs 316.05 from the previous session. So far in 2025, shares have dropped by approximately 25.52 percent.
In a broader context, RailTel shares have yielded over 148 percent returns to investors over the past five years. However, there has been a decline of around 25.24 percent in the last year.
As of the market close on Friday, the company's market capitalization was Rs 9,679.50 crore. RailTel reached its 52-week high of Rs 618 on July 12, 2024, while the 52-week low stood at Rs 265.30 on February 3.
Point of View
It is imperative to recognize RailTel's strategic growth trajectory amidst challenging market conditions. This latest achievement not only underscores the company's operational expertise but also reflects its commitment to enhancing public transport through advanced technology solutions.
NationPress
25/06/2025
Frequently Asked Questions
What is the value of the order won by RailTel?
RailTel won an order worth Rs 90.08 crore from the Institute of Road Transport.
What will the contract involve?
The contract includes the design, development, supply, implementation, operations, and maintenance of an ERP system.
When is the project expected to be completed?
The project is expected to be completed by October 18, 2026.
Is this project related to RailTel's promoters?
No, the company clarified that this project has no connection with its promoters and is not a related party transaction.
How have RailTel shares performed recently?
RailTel shares closed nearly 5 percent lower on Friday, with a decline of about 25.52 percent in 2025.
