Navratna PSU engaged in providing a comprehensive range of services from concept to commissioning in all facets of transport, infrastructure, and related technologies jumped 13 percent in the day’s trade following consideration for the bonus issue of equity shares of the company.
Price Action
With a market capitalization of Rs. 16,429 Crores, the shares of Rites Limited were trading at Rs. 683.70 per equity share, down 1.19 percent from its previous day’s close price of Rs. 691.95.
What Happened
The board of directors of Rites Limited has announced that they are going to meet on Wednesday, 31st July 2024 to consider and approve the Standalone and Consolidated Unaudited Financial Results of the Company for the quarter ended 30th June 2024 and for consideration of payment of the First Interim Dividend, for the F.Y 2024-25, If any.
In addition, the Board of Directors of Rites Limited may also consider the proposal for the issuance of bonus shares to the company’s existing shareholders as of the record date.
Recently it has also received a new work order from the Directorate of Medical Education & Research, Mumbai, for providing Project Management Consultancy (PMC) on a turnkey basis for constructing a New Government Medical College of 100 Student Capacity & 430 Bedded Hospitals at Amravati, Maharashtra for a consideration of Rs. 321.30 Crores.
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About the Company
Rites Limited is a Navratna central public sector enterprise under the Ministry of Railways, it is a multidisciplinary engineering and consultancy organization, that provides a comprehensive range of services from concept to commissioning in all facets of infrastructure, transport, and related technologies.
As of Q4FY24 Rites Limited has a strong order book of Rs. 5,690 Crores, its breakdown consists of Consultancy services for Rs. 2600 Crores (45.69%), Turnkey Projects for Rs. 2,505 Crores (44.02%), Exports Rs. 295 Crores (5.18%), Lease services Rs. 170 Crores (2.98%) and others Rs. 120 Crores (2.10%).
Financials and Ratios
Its revenue from operations declined by 6.67 percent from Rs. 2628 Crores in FY23 to Rs. 2453 Crores in FY24, accompanied by profits of Rs. 571 Crores to Rs. 495 Crores.
In terms of Return ratios, it has reported a return on equity(ROE) of 17.5 percent, and a return on capital employed (ROCE) of 24.8 percent. It is a debt-free company with a debt-to-equity ratio of 0.
Written by: Bharath K.S
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