Cressanda Solutions jumped 4.84% to Rs 30.35 after the company announced that it has bagged prestigious order for in-coach digital advertising in the Kolkata Metro for a period of 5 years.
The contract is renewable for an additional 5 years, the company said.
The company aims to serve 7-8 lakh passengers daily with an annual target of 15 crore passengers and above. The IT solutions provider is in advance stages for the contract for providing in-coach wi-fi services.
Kolkata Metro Trains operates about 39 trains daily which provide 15 hour services, each train has 9 coaches and each coach has 2 TVs on which the company has acquired exclusive rights for digital advertisement. For the total advertisement content 70% is for the commercial advertising on this platform and a 30% advertisement slot is reserved for government advertisements.
In September 2022, Cressanda Solutions applied to the Ministry of Railways for non-fare revenue (NFR) proposals to provide comprehensive services to the South-Eastern Railway (SER), including Wi-Fi, advertising, pick up and drop services and above all, moving.
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Infotainment services in trains offer preloaded multilingual content including movies, news, music videos and general entertainment through buffer-free media servers installed inside the coaches.
The company is planning to launch a Super-App which allows passengers to get Wi-Fi during the journey. For that very purpose, in July 2022 Cressanda signed a memorandum of understanding (MoU) with a consortium led by Bufshelfco 59 (Pty) Limited, South Africa (Bufshelfco) for a period of three years to provide IT infrastructure, super app development, digital services and will provide advanced user experience by providing superior services across various static and mobile platforms of marketing services.
With this expertise and experience, Crescenda aims to provide uninterrupted mobile Wi-Fi services to a large number of users of its services at multiple locations spread across India, whether by air, sea or road.
Soumyadri Shekhar Bose, executive director and managing director, said, This opportunity to handle non-fare revenue proposals will put Cressanda in a significant position in the market as it aims to serve 7-8 lakh passengers daily with an annual target of 15 crore passengers and above.
Company's revenue from these services is expected to cross over Rs 75 crore annually in the initial year with pre-tax profit margin expected to be in the range of 15-20%.
Cressanda Solutions is an India-based company engaged in providing information technology (IT), digital media and IT enabled services.
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