Navratna PSU engaged in providing a comprehensive range of services from concept to commissioning in all facets of transport, infrastructure, and related technologies in focus upon receiving a new work order worth Rs. 25.80 Crores from Gujarat State Electricity Corporation Limited.
Price Action
With a market capitalization of Rs. 16,585 Crores, the shares of Rites Limited were trading at Rs. 690.20 per equity share, down 5 percent from its previous day’s close price of Rs. 722.70.
What Happened
Rites Limited has received a new Letter of Intent from Gujarat State Electricity Corporation Limited for the Work of hiring Locomotives on a wet lease basis along with the operation and maintenance at CHP, Wanakbori TPS, GSECL (Gujarat) for a consideration of Rs. 25.80 Crores and it should be executed within 24 months.
In Addition, the board of directors of the company has recommended the issuance of Bonus shares of the company in the ratio of 1:1 where one bonus share of the company will be given to each equity share held by the shareholders as on the record date.
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 transport infrastructure and related technologies.
As of Q1FY25 Rites Limited has a strong order book of Rs. 6355 Crores, its breakdown consists of Consultancy services for Rs. 2492 Crores (39.21%), turnkey Projects for Rs. 2,351 Crores (36.99%), Exports Rs. 1202 Crores (18.91%), Lease services Rs. 190 Crores (2.98%) and others Rs. 120 Crores (1.88%).
Financials and Ratios
Its revenue from operations decreased by 6.67 percent from Rs. 2,628 Crores in FY23 to Rs. 2,453 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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