Contract Withdrawal
RailTel Order Cancelled by Navodaya Vidyalaya Samiti; ₹17.12 Cr Contract Withdrawn
NSE
railtel
BSE
543265
RailTel Corporation of India Limited has announced the cancellation of a previously awarded work order worth ₹17.12 crore by Navodaya Vidyalaya Samiti due to administrative reasons.
PRICE-SENSITIVE TRIGGER
Event: Order Cancellation
Type: Contract Withdrawal
Impact: Negative
Immediate Effect: Reduction in order book and revenue visibility
Key Metrics
- Cancelled Order Value: ₹17.12 Crore (including tax)
- Client: Navodaya Vidyalaya Samiti
- Nature: IT Infrastructure procurement & maintenance
- Original Order Date Reference: January 29, 2025
Highlights
Entire order cancelled before execution completion
What Happened ?
RailTel informed that a previously secured work order from Navodaya Vidyalaya Samiti for IT infrastructure projects has now been cancelled.
The cancellation has been attributed to unavoidable administrative circumstances on the client’s side.
Details Breakdown
Original Order Scope
- Procurement & maintenance of IT infrastructure
- Government client (education sector)
Cancellation Reason
- Administrative reasons (not performance-related)
- Decision taken by client
Impact on Business
- Loss of expected revenue from the project
- Minor impact on overall order book
Risk Analysis
Key Risks
- Dependency on government contracts
- Unexpected administrative cancellations
- Revenue volatility from order pipeline
Worst Case Scenario
Frequent cancellations of similar order weaken revenue predictability
Risk Level: Medium
Company Commentary
- Cancellation due to unavoidable administrative circumstances
- No fault attributed to RailTel
- Disclosure made under SEBI Regulation 30
Official Exchange Filing: RailTel Corporation of India Limited