RITES shares jump up to 4% on winning ₹298 crore order; stock rises 12% in 1 month

The stock gained as the company announced it had secured an order worth ₹297.67 crore from the Ministry of External Affairs, Government of India. 

In an exchange filing, RITES said, “We are pleased to inform you that RITES has received work for project implementation services for the construction of Integrated Check Post (ICP) from the Ministry of External Affairs, Government of India."

The project is expected to be completed within 59 months, including the defect liability period.

This is the company's second order in a week. Earlier, RITES secured a significant project from the Indian Institute of Management (IIM) in Raipur. 

The order, valued at ₹148.25 crore (excluding GST), involves RITES serving as the Project Management Consultant (PMC) for the development of Phase II of the institute's campus in Chhattisgarh. The scope of the project includes execution and supervision, according to news reports. 

For the quarter ended September 30, 2024 (Q2 FY25), RITES reported a 25% decline in its consolidated net profit to ₹82.5 crore, in comparison to ₹110.17 crore logged in the year-ago period.

Furthermore, the PSU announced the second interim dividend of the fiscal year at ₹1.75 per share and fixed the record date on Friday, November 15. The dividend had a payout ratio of 97.9%.

Its revenue from operations fell 7% to ₹540.86 crore in the second quarter of FY’25 from ₹582.36 crore registered in the same period a year earlier.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped by 23% to ₹107 crore from ₹138 crore logged last year.

The EBITDA margin contracted from 23.6% in the previous year to 19.9% in the second quarter of the fiscal.

In the past 30 days, shares of the PSU have rallied nearly 12%. Last seen, the stock was trading nearly 2% higher at ₹302.30 on the BSE.