The Indian civil construction sector is a pivotal economic driver, employing about 71 million people as of 20237. By FY25, the construction market is projected to reach $1.4 trillion, driven by government initiatives and infrastructure investments. This growth is fueled by a CAGR exceeding 6 percent and significant urbanization trends.
Price Movement
With a market capitalization of Rs 10,580.49 crore, the shares of RITES Ltd closed at Rs 219.45 per share, increased around 3 percent as compared to a previous closing price of Rs 212.80 apiece.
Matter Explanation
RITES, a Navratna PSU under the Ministry of Railways, projects 20 percent revenue growth and a 10 percent net profit rise by March 2026, driven by strong execution and rising orders. The company targets a Rs 10,000 crore order book, securing 110+ orders worth Rs 1,900 crore this quarter.
Chairman and Managing Director Rahul Mithal highlighted the company’s ongoing efforts to recover from previous dips. “The execution has been improving sequentially, and what we are aiming is that we end the year at least to try and bring down the topline dip to about 10 percent or below, and bottom-line dip to about 20 percent or below.”
Mithal added, “Moving forward, with the increase in all streams of business, in the percentage of competitive orders, the margins are settling down in this range of about 20 percent earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins and profit after tax (PAT) margins about 15-16 percent.”
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Recent Orders
RITES Limited has received a letter of acceptance from South Central Railway for conducting the final location survey for the high-speed elevated rail corridor between Hyderabad-Bengaluru and Hyderabad-Chennai. The contract is valued at Rs. 27.96 crores and is to be completed within 8 months.
This project includes preparing the detailed project report (DPR), final alignment design, traffic survey report, ROR calculations, detailed estimate, and EPC documents using modern survey techniques like airborne or terrestrial LIDAR. This is a domestic transaction between a government and a government company.
Export Order Book
RITES’ export order book stands at Rs 1,300 crore from Bangladesh, Mozambique, and South Africa, with revenue realization beginning next fiscal year. The company targets 40 percent contribution from exports, though margins may drop to around 10 percent due to competitive bidding, lower than the traditional 20 percent.
Company Overview
RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia, and Indonesia).
Written by Abhishek Singh
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