The shares of this public sector enterprise gained up to 2 percent after the company signed a memorandum of understanding with the National Highways Authority of India (NHAI).
Rites Ltd has a market capitalization of Rs 18,223.29 per share, the shares were trading at Rs 758.35 per share increasing around 0.07 percent as compared to the previous closing price of Rs 758.85 apiece.
Reason for rise:-
According to the company filing, Rites Ltd signed a Memorandum of Understanding (MoU) with the National Highways Authority of India (NHAI), under the Ministry of Road Transport and Highways, Government of India. This partnership aims to deliver consultancy services for NHAI projects in the areas of highways, bridges and tunnels, and road safety audits.
Financial Analysis:-
Examining the company’s financial performance, revenue plummeted by 6 percent from Rs 687 crore in Q4FY23 to Rs 643 crore in Q4FY24, and during the same time frame, net profit shrunk by 1.4 percent from Rs 139 crore and Rs 137 crore.
Network:-
The company has an experience spanning 50 years and has undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and the Middle East region.
Order Book:-
As of March 2024, the firm had a solid order book of Rs 5,690 crore, which included Rs 295 crore from exports, Rs 2,600 crore from consultancy, Rs 120 crore from REMC, Rs 170 crore from leasing, and Rs 2,505 crore from turnkey.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity declined from 20.81 percent in FY22-23 to 17.45 percent in FY23-24, while during the same time frame return on capital employed also declined from 25.84 percent to 22.89 percent. In contrast, the net profit margin (NPM) stands at 19.96 percent in fiscal year 22-23.
Company profile:-
RITES Limited provides comprehensive transportation infrastructure and technology services, from idea to completion. The company works in four segments: consultancy services, leasing of railway rolling stock and equipment, export of rolling stock and spare parts, and turnkey construction projects.
Written by:- Abhishek Singh
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