RailTel Q1 Review - Expected Credit Loss Provisioning Hurt Ebitda: ICICI Securities
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RailTel Q1 Review - Expected Credit Loss Provisioning Hurt Ebitda: ICICI Securities

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ICICI Securities Report

Railtel Corporation Of India Ltd.’s Q1 FY22 Ebitda was hit due to:

  1. Covid-19 led lockdown, which reduced revenue execution by Rs 500 million in telecom services and projects; and

  2. expected credit losses provisioning of Rs 302 million.

RailTel remains confident of acceleration in revenue growth in the coming quarters as enquires have started increasing, and incremental ECL provisioning for full-year FY22 is expected to be only Rs 100 million.

Projects orderbook has grown by Rs 3.41 billion and the total orderbook now stands at Rs 40 billion, which provides visibility on future revenue growth.

The biggest trigger for Railtel is Indian railways’ deployment of long term evolution network and consequent large orders.

This will also help build a good tower business for the company with annuity revenues.

Click on the attachment to read the full report:

ICICI Securities Railtel Q1FY22 Results Update.pdf


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