Thread by @CAALOKJAIN_TANA

#RailTel Q2FY23 Conference Call Key Highlights

1.Telecom business contributed 295 cr Vs INR 274 QOQ.
2.Project business contributed 134 cr Vs 103 crore QOQ a growth of 30%.

3) SoC network- Railtel will continue to expand its SoC Network through collaborations and partnerships to make deep inroad within the state

4) Video Surveillance system for Indian Railway- The company is actively working towards successful execution of video surveillance system of Indian railways project and a major part of Nirbhaya work under this project shall be expected to be completed during the current FY.

4) Data Center Business-Data Center services being provided by RailTel itself. They also help its customers building their data centers. They plan to set up around I00 plus edge data centers close to the users. From there they expect good revenue numbers.

And there is huge demand in data center requirements, from government Orgs. This business will grow fast because the OTT players and even the big port, like Google, Facebook, they are also willing to come close to the customer so that the user experience increases.

5) COD Project-They are getting engaged with the consultant. So, that they can reassess the monetization potential. Post launch and popularity of OTT, the COD seems to be now bundled with the different kind of potential.

6.RON Project- Is under final stage of evaluation. By Q3FY23 they might be coming with the results from RON.

7.Tower tender is already floated and they may be getting this also submitted somewhere in this month or may be maximum first week of December.

8.Consultancy Projects- They are helping in DPR preparation, finalizing of tender etc. So those kind of projects will help them in sustaining EBITDA margin, EBITDA growth. These type of projects will help company in achieving EBITDA growth of 20%.

10.NMDC Order- For NMDC they may do 3 roles. 1st providing consultancy in IT application, implementation. 2nd executing projects for them. 3rd they would be providing services in many mining sites. They expect to get approx 200 cr business by early next year with 8-10% Margin.

9) Approaching other PSU also for business like GMDC, Coal India. But they are already doing business with coal India. It is similar services like they may do for NMDC.

11) Cash In Books - INR 470 crore.

13.RD project-They have already received the bids last quarter. Winner would be announced this quarter. They will be getting 10-year stage payments. So from FY24 onwards they will start getting the stage payments.

14) Project business-Expect around INR 1000 crore in whole FY23. And next year, certainly it'll be in the range of 1500 crore. In H1FY23 , they did 237 crore. In project business, generally there is seasonality. Q3 & Q4 make most of the numbers in projects.

15) VSS project-They are expecting around INR 300 crore which will be booked mostly in Q4.

16) RailWire business-ARPU is 550 to 600 and numbers are about 5 lakh and they expect to reach 6 lakh by the end of this financial year.

17) Sector in Which Railtel Doing Business- In Defence, Coal, Railway, Banking, Education and Health. Now entering into smart city projects also. Now Taking projects for state wide networks (SWAN). Most of the SWAN projects have completed their life and they are on the renewal.

18) Monetizing assets opportunities like in case of Tower, RDN, even Wi-Fi, which they have done already at 6,000 plus stations.

19) Railway hospital management project is already executed. So like Karnataka, they have already done one POC. Many of the AMS they have approached. We are in touch with AVDM also, this central government health department as well.