The shares of the engineering and consultancy company gained up to 2 percent after the company received a letter of award from Tata Steel Ltd worth Rs 39.63 crore.
With a market capitalization of Rs 15,438.18 crore, the shares of Rites Ltd were trading at Rs 642.45 per share, increasing around 0.65 percent as compared to the previous closing price of Rs 646.65 apiece.
According to the company filing, Rites Ltd has received a letter of award for Loco Hiring along with operation and maintenance from Tata Steel Ltd Klinganagar, the LOA valued at Rs 39.63 crore. The time period to execute is 72 months.
Looking into the company’s financial performance, revenue has fallen by 6.4 percent from Rs 987 crore in Q4FY23 to Rs 643 crore in Q4FY24, during the same period, net profit decreased by 1.4 percent from Rs 139 crore and Rs 137 crore.
As of March 2024, the business has an amazing order book of Rs 5,690 crore across several categories, including export of Rs 295 crore, consulting of Rs 2,600 crore, turnkey of Rs 2,505 crore, leasing of Rs 170 crore, and REMC Ltd of Rs 120 crore.
Examining the company’s important ratio, return on equity declined from 20.81 percent in FY22-23 to 17.45 percent in FY23-24, while during the same time frame return on capital employed also declined from 25.84 percent to 22.89 percent. In contrast, the net profit margin (NPM) stands at 19.96 percent in fiscal year 23-24.
Examine the company’s recent shareholding pattern, the promotor holds a 72.2 percent equity share in the company, retail investors own a 12.53 percent stake and Domestic institutional investors own an 11.09 percent stake in the company.
RITES Limited provides a wide range of transportation infrastructure and related technology services, from idea to completion. It works in four business segments: consultancy services, leasing of railway rolling stock and equipment, export of rolling stock, equipment, and spares, and turnkey construction projects.
Written by:- Abhishek Singh
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