This PSU stock, which deals in consultancy for the transport and engineering sector in India with diversified services and geographical reach, is in focus after the company entered into an MoU with Neyveli U.P Power worth Rs. 120.13 crore.
Share Price Movement
With a market capitalization of Rs. 10,056.63 Crores, the shares of Rites Limited were down by 2.54 percent in the day’s trade touching a day’s low of Rs. 208.35 per share. The stock reiterated from the day’s low and was trading at Rs. 209.10 which is 2.20 percent lower than the previous closing price of Rs. 213.80 apiece.
It has delivered a negative return of 44 percent which has underperformed the Nifty Index in the past year.
What Happened?
The company’s stock was in focus after entering into a Memorandum of Understanding (MoU) with Neyveli Uttar Pradesh Power Limited (JV of Neyveli Lignite Corporation India and Uttar Pradesh Rajya Vidyut Utpadan Nigam) for Comprehensive Operations & Maintenance of NUPPL or GTPP Railway Siding worth Rs. 120.13 crore. The period for the order completion is 5 years.
Q3FY25 Financial Highlights
Rites’ consolidated revenue from operations has declined by 15.66 percent year on year from Rs. 683 crores in Q3FY24 to Rs. 576 crores in Q3FY25 and increased by 6.46 percent quarter on quarter from Rs. 541 crores in Q2FY25.
The company’s consolidated net profit stood at Rs. 109 crores in Q3FY25, a decline of 15.50 percent from Rs. 129 crores in Q3FY24. As compared to Q2FY25, the company’s net profit stood at Rs. 82 crore.
Business Segments
The company earns 51.27 percent of the operational revenue from Domestic consultancy, 2.46 percent from Abroad Consultancy, 0.12 percent from Export Sales, 7 percent from Domestic Leasing, 38.77 percent from Domestic Turnkey Construction projects, and 0.36 percent from Power Generation for the December 2024 quarter.
In terms of operating profits, domestic consultancy accounts for a higher percentage. Despite the Domestic Turnkey Construction segment earning higher revenue, the operating margins are low.
Company Overview
RITES Limited was established in 1974 and is an Indian government enterprise that provides multidisciplinary engineering and consultancy services for transport and infrastructure projects in India and abroad.
Order Book
The order book of the company stood at around Rs. 7,978 crore as of 31st December 2024. For Q3FY25, they have received 110+ which is the highest ever orders worth Rs. 1,933 crores.
Written By Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
