The shares of the engineering and consultancy company gained up to 4 percent after the company received a letter of acceptance from Bangladesh Railway worth $ 111.26 Mil.
With a market capitalization of Rs 16,918.45 crore, the shares of Rites Ltd were trading at Rs 704.05 per share, increasing around 2.52 percent as compared to the previous closing price of Rs 686.75 apiece.
According to the company filing, Rites Ltd has received a letter of acceptance from Bangladesh Railway in connection with the supply of 200 Broad Gauge (BG) Passenger Carriages to Bangladesh Railway worth $ 111.26 Mil. This work order will be completed in 36 months.
Looking into Rites Ltd’s performance, revenue increased by 1 percent from Rs 677 Crore in Q3FY23 to Rs 683 Crore in Q3FY24. During the same time frame, net profit decreased by 12 percent from Rs 147 crore to Rs 129 crore.
According to the most recent presentations, the company’s total order book as of December 31, 2023, is Rs 5,496 crores, with the “Consultancy” segment accounting for 48%, the “Turnkey” segment accounting for 42%, and the remainder coming from Exports, Leasing, and other sources.
Furthermore, the company’s ratio analysis shows that the return ratios, namely the return on equity (RoE) and the return on capital employed (RoCE), were reported at reasonable levels during FY23, with the former at 21.3 percent and the latter at 29.7 percent.
RITES Limited, founded in 1974, is a public-sector firm and a market leader in India’s transport consultancy and engineering sectors, with a wide range of services and a global presence. Apart from Thailand, Malaysia, and Indonesia, the firm is the sole export arm of Indian Railways that provides rolling stock overseas.
Written by:- Abhishek Singh
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