RITES shares jump 5.3% on two order wins; check details

Shares of RITES Ltd jumped 5.3% on Wednesday to hit intraday high of ₹294.9 at 9:20 am after the company announced two major contracts win on Tuesday overnight. The shares closed 0.3% lower on Tuesday at ₹279 apiece on the NSE.

The company received a purchase order from the African Rail Company for the supply of 2 fully overhauled ALCO locomotives for development in Zimbabwe and Mozambique, and Botswana. The order is slated to be worth $3.6 million (₹30.8 crore) and is expected to be completed in 9 months.

The order includes the supply and commissioning of the overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives fitted with new Cape Gauge Bogies, Traction Motors, Control System, Air-braked, etc., overhauled at the nominated facility and warranty support with the deployment of the RITES technical team.

Secondly, the company’s joint venture, RITES-Aryan, also received an LOA (letter of award) from South Western Railway for Tumakuru Station Redevelopment Engineering, Procurement and Construction Agreement for Tumakuru Station Redevelopment, including Civil Works, Signal and Telecommunication works and Electrical General Services at Tumakuru Station. The order is worth ₹37.8 crore and is expected to be completed in 540 days from the date of agreement.

In Q4FY25, the company’s revenue for the quarter dropped 4.3% YoY to ₹615 crore as compared to ₹643 crore in the previous year’s similar quarter. However, the company reported operational performance with a 5.4% YoY jump in EBITDA at ₹185 crore. Lastly, the net profit for the quarter remained flat at a 2.45% YoY jump at ₹137 crore.

RITES Limited, a Government of India Enterprise, was established in 1974 under the aegis of Indian Railways. It has a significant presence as a transport infrastructure consultancy organisation in the railway sector. However, it also provides consultancy services across other infrastructure and energy market sectors, including urban transport, roads and highways, ports, inland waterways, airports, institutional buildings, ropeways, power procurement and renewable energy.