The shares of this public sector enterprise gained up to 6 percent after the company signed a memorandum of understanding for operations and management projects of the metro rail system.
The shares of Rites Ltd were trading at Rs 714.30 per share, increasing around 4.55 percent as compared to the previous closing price of Rs 679.90 apiece, the market capitalization of the company is Rs 17,084.26 crore.
On Friday, the stock has seen such a bullish movement after Rites Ltd signed a memorandum of understanding with Delhi Metro Rail Corporation Ltd for collaboration in comprehensive operations and management projects of the metro rail system, including Rolling Stock, Depot Management, Station Management, maintenance of Railway Infrastructure, etc. in India and abroad.
Moreover, in this collaboration, DMRC and RITES will work together in tandem, leveraging each other’s strengths and enhancing business capabilities.
Examining the company’s financial performance, revenue plummeted by 6.4 percent from Rs 987 crore in Q4FY23 to Rs 643 crore in Q4FY24, and during the same time frame, net profit shrunk by 1.4 percent from Rs 139 crore and Rs 137 crore.
The company has experience spanning 50 years and has undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and the Middle East region.
As of March 2024, the firm had a solid order book of Rs 5,690 crore, which included Rs 295 crore from exports, Rs 2,600 crore from consultancy, Rs 120 crore from REMC, Rs 170 crore from leasing, and Rs 2,505 crore from turnkey.
RITES Limited is an Indian engineering and consulting firm. The company provides a wide range of transportation infrastructure and related technology services, from idea to completion. It operates in four segments: Consultancy Services, Leasing of Railway Rolling Stock and Equipment.
Written by:- Abhishek Singh
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