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. 50.18 Crores from the Public Works Roads Department of Assam.
Price Action
With a market capitalization of Rs. 18,174 Crores, the shares of Rites Limited were trading at Rs. 755.10 per equity share, down 0.55 percent from its previous day’s close price of Rs. 759.30
What Happened
Rites Limited has announced that it has received a Letter of Acceptance (LOA) or a new work order from the Public Works Roads Department (PWRD), Government of Assam for a consideration of Rs. 50.18 Crores.
The said work order is for providing Consultancy Services for Third-Party Monitoring & Quality Control for 47 Roads across Assam under Asom Mala 2.0 for the year 2023- 24 and it should be executed within 18 months.
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 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 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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