The share price of public sector stock rose by 2 percent to Rs 487.50 its intraday high on Monday from its previous close of Rs.477.25 per share after the company announced its win of a tender worth USD 37,680,080.
According to the filing of Rites Ltd, the company has announced that it was the lowest bidder in tenders from CFM Mozambique, the company won and secured the tender for 10 diesel-electric locomotives, valued at USD 37,680,080.
According to the Rites Ltd report, the company’s net revenue decreased 11.6 percent Year on Year from Rs 659 crores in Q2FY23 to Rs 582 crores in Q2FY24. On a quarter-on-quarter basis, their revenue increased 7 percent from Rs 544 crore in Q1FY24 to current levels.
In addition, net profit declined 21 percent year on year, from Rs 140.2 crores in Q2FY23 to Rs 110.17 crores in Q2FY24. On a sequential basis, their net profit fell by 7 percent from Rs 119.5 crores in Q1FY24 to current levels.
Rites Limited is a small-cap company with a market capitalization of Rs 11,320 crores. It also has a return on equity (ROE) of 22.4 percent and a return on capital employed (ROCE) of 30.5 percent.
The majority stake in Rites Ltd is held by promoters at 72 percent, followed by foreign institutional investors at 3.98 percent, domestic institutional investors at 12.72, and the remaining portion belonging to the public.
The share price of Rites Ltd company has climbed by 37.7 percent year-to-date and by 28 percent over the past six months.
RITES Limited, founded in 1974, is a public sector enterprise and a leading player in India’s transport consultancy and engineering sectors, with diverse services and geographical reach. The company, which only supplies rolling stock to countries other than Thailand, Malaysia, and Indonesia, is Indian Railways’ sole export division.
Written by Sriram KV