Shares of RITES Ltd climbed by around 2% on November 6 after the state-owned engineering consultancy firm announced a new contract from Delhi Metro Rail Corporation (DMRC) valued at Rs 36.36 crore (excluding GST). This order is for retrofit work on RS-1 trains, aimed at upgrading and enhancing train performance and lifespan. The work is expected to be completed within three years from the issuance of the letter of acceptance (LOA) on November 5.
RITES emerged as the lowest bidder in a competitive tender issued by DMRC on September 26. This contract does not involve any related party transactions and is fully handled by DMRC as a domestic client.
This win comes close on the heels of another recent success for RITES: last month, a RITES-led consortium emerged as the lowest bidder in a Rs 87.58 crore tender floated by DMRC, with RITES holding 49 per cent stake in it. In October, RITES received a Rs 59.13 crore work from UP State Bridge Corporation Ltd and will complete both projects within three years.
RITES also said its net profit fell 24.4% to Rs 90.4 crore as revenue declined 10.8% to Rs 486 crore in its June quarter over the year-ago period. EBITDA margins for the company shrunk 800 bps from 29.8% last year to 21.8% this time.
At 12:06 pm, RITES shares traded 1.5% higher at Rs 299.10 apiece on NSE. The stock has gained 18% year-to-date against the Nifty’s 10% gain and has rallied 33% in the last one year against the 23% rally in Nifty.
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Source: Moneycontrol
News Desk
