Navratna PSU engaged in providing a comprehensive range of services from concept to commissioning in all facets of transport, infrastructure, and related technologies jumped upto 4 percent in the day’s trade upon receiving LOA worth ~Rs. 59 Crores.
What Happened
Rites Limited a Navratna central public sector enterprise under the Ministry of Railways has received a Letter of Acceptance from the U.P. State Bridge Corporation Limited for a consideration of Rs. 59.13 Crores.
The said work order is for the Consultancy Services for Construction Supervision of Civil works (CSC) for supervision, Monitoring, Quality Control, and Work Zone Safety for the Construction of Bridges, Rail Over/Under Bridges, Flyovers, and Elevated Roads including approaches in several districts of Uttar Pradesh and it is to be executed within 36 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 infrastructure, transport, and related technologies.
Its products and services include, Locomotives, Coaches, Wagons, and Train Sets, it provides services like Management Consultancy on Covering various sectors of Railways, Metros, Airports & Land Ports, Highways, Ropeways, Urban Planning & Infra, and many others.
As of Q1FY25 Rites Limited has a strong order book of Rs. 6,355 Crores, its breakdown consists of Consultancy services for Rs. 2,492 Crores (39.21%), Turnkey Projects for Rs. 2,351 Crores (36.99%), Exports Rs. 1,202 Crores (18.91%), Lease services Rs. 190 Crores (2.98%) and REMC Rs. 120 Crores (1.88%).
Financials & Ratios
Its Revenue from declined grew by 10.76 percent YoY from Rs. 544 Crores in Q1FY24 to Rs. 486 Crores in Q1FY25, accompanied by profits of Rs. 120 Crores to Rs. 90 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 25.4 percent. It has reported a debt-to-equity ratio of 0.
Written by: Bharath K.S
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