Shares of RITES Limited rose nearly 5% in early trade on December 6 after the company announced that it has secured a Rs 148.25 crore project from the Indian Institute of Management (IIM) Raipur. The project involves RITES acting as the Project Management Consultant for the Phase II development of the institute’s campus in Chhattisgarh. The company will oversee execution, supervision, monitoring, and development work, which is expected to be completed within 23 months on a cost-plus basis.
The stock rose as much as 4 per cent to Rs 299 at 9:20 am today. In 2021, RITES has advanced 18 per cent while Nifty50 index has also gained 13 per cent.
RITES is a public sector enterprise established in 1974 under the aegis of Indian Railways, which is renowned for its transport consultancy and engineering services. It is also the export arm of Indian Railways for rolling stock in all markets except Thailand, Malaysia, and Indonesia.
However, the company reported weaker financial numbers in September 2019 compared to its performance in the same year ago period. Net profit tumbled 25% year on year to Rs 82.5 crore, with revenue falling 7.1% to Rs 541 crore. Ebitda shrunk 23% on a y-o-y basis to Rs 106.4 crore, against a margin of 23.6% last year over 19.7%.
Despite these challenges, RITES has been actively securing new projects, achieving over 90 orders in the second quarter of FY24. The company remains optimistic about maintaining this momentum throughout the financial year.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
