The share price of this Navratna stock gained 3% to an intraday high of ₹726 per share after the company signed an MoU with Damodar Valley Corporation for the operational management of railway sidings, signaling, and telecommunication (S&T) systems.
At 10:45 a.m., Rites Ltd shares were trading at ₹714.50 per share, up 9.20 percent on the National Stock Exchange. The company has a market capitalization of ₹17,185 crore.
According to the company’s exchange filing, RITES Ltd has signed a Memorandum of Understanding (MoU) with Damodar Valley Corporation (DVC), a statutory body under the Ministry of Power, to collaborate on the comprehensive maintenance and operational management of railway sidings, signaling and telecommunication (S&T) systems, and 25KV Overhead Electrification (OHE) isolators throughout DVC’s private railway network in West Bengal and Jharkhand.
The maintenance work entrusted to RITES will include the AMC for railway sidings, O&M of S&T systems, and operation of 25KV OHE isolators.
RITES Limited, a Navratna Public Sector Enterprise, is a leading player in India’s transport consultancy and engineering sector, known for its diverse services and extensive geographical reach. With 50 years of experience, RITES has completed projects in over 55 countries across Asia, Africa, Latin America, South America, and the Middle East.
In Q4FY24, the company’s revenue increased by 6.4% year-on-year, rising from ₹643 crore to ₹687 crore. However, net profit saw a slight decline of 1.4%, dropping from ₹139 crore to ₹137 crore during the same period.
As of Q4FY24, RITES has an order book valued at ₹5,690 crore, having secured 100 orders worth ₹940 crore—averaging more than one order per day during the quarter. Of the total order book, 46% is from consultancy services, 44% from turnkey projects, 5% from exports, and 2% from REMCL.
Established in 1974 by the Ministry of Railways, Rail India Technical and Economic Service (RITES) is a prominent public sector enterprise in transport consultancy and engineering, also exporting railway equipment worldwide.
RITES Ltd shares have seen significant growth, gaining 37% in the last six months and 81% in the last twelve months.
Written by Omkar Chitnis
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