In Wednesday’s trading session, the shares of one of the leading PSU stock specialised in offering engineering consultancy and project management services jumped upto 2 percent after receiving a new work order for providing consultancy services to Meerut Development Authority.
Price action
With a market capitalization of 14,420 Crores on Wednesday, the shares of Rites Ltd jumped upto 2 percent after making a high of Rs 306.10 compared to its previous closing price of Rs 300.25.
What happened
Rites Ltd has received a new domestic work order worth Rs 122.60 Crores from Meerut Development Authority for providing consultancy services for the preparation of a Detailed Project Report (DPR) and construction supervision of all infrastructure works of Meerut Development Authority and the order is to be completed within next five years.
About the company
Rites Ltd, one of the leading PSU stocks under the Ministry of Railways specialised in engineering consultancy and project management services, with a primary focus on transportation infrastructure.
They are renowned for their expertise in transportation, infrastructure and urban development, alongside they provide services for railway engineering, project planning and turnkey solutions, also provide technical expertise in sectors such as highways, ports and airports with a strong presence in over 55 countries.
Recent Developments
Rites Ltd has recently launched VISTAR, an AI-powered solution for advanced rail inspection. The company also signed a Memorandum of Understanding (MoU) with Etihad Rail, as well as with NBCC and HUDCO to offer comprehensive consultancy and project management services.
Orderbook Breakdown
As of September 30, 2024, RITES Ltd’s order book stands at Rs.6,581 crore, with the following breakdown: Rs.2,542 crore (38.6 percent) from Consultancy, Rs.2,506 crore (38.0 percent) from Turnkey projects, Rs.1,240 crore (18.8 percent) from Exports, Rs.173 crore (2.6 percent) from REMC Ltd and Rs.120 crore (1.8 percent) from Lease agreements.
Financials
The company’s revenue declined by 7.6 percent from Rs 608.81 crore to Rs 562.13 crore in Q2FY24-25. Meanwhile, Net profit fell from Rs 101.15 crores to Rs 72.98 crore during the same period.
Key Financial ratios
Rites Ltd has an impressive Return on Equity (RoE) of 15.42 percent and a Return on Capital Employed (RoCE) of 20.83 percent. Furthermore, the company’s debt-to-equity ratio is 0.
Written by Sridhar J
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