Shares of RITES Ltd, a Navratna PSU specializing in transport consultancy and engineering, rose 4% on Monday after securing a Rs. 298 crore order from the Ministry of External Affairs (MEA).
During the trading session, RITES’ share price hit an intra-day high of Rs. 308.75, up 4.2% from its previous close of Rs. 296.45. The stock later settled at Rs. 302.90 per share.
The MEA awarded RITES a Rs. 297.67 crore contract for Project Implementation Services for constructing an Integrated Check Post (ICP). This includes construction costs and the Project Management Consultancy (PMC) fee, excluding GST. The project is expected to be completed within 59 months, including the Defect Liability Period.
As of September 30, 2024, RITES’ order book stands at Rs. 6,581 crore, distributed as follows: Consultancy (38.6%), Turnkey projects (38.0%), Exports (18.8%), REMC Ltd (2.6%), and Lease agreements (1.8%).
RITES has recently launched VISTAR, an AI-driven rail inspection solution, and signed MoUs with Etihad Rail, NBCC, HUDCO, and NHAI for consultancy and project management services in rail, highways, bridges, and tunnels.
Despite these developments, RITES reported a 7% year-on-year drop in consolidated revenue to Rs. 541 crore in Q2 FY25 and a 26% decline in net profit to Rs. 82 crore.
As a Navratna PSU under the Ministry of Railways, RITES plays a pivotal role in India’s transport infrastructure development.
