RITES gains 3% after emerging lowest bidder for Rs 65 crore contract from Indian Railways

RITES Limited, formerly Rail India Technical and Economic Service Limited, gained more than 3 per cent in trade on Wednesday after the company emerged as the lowest bidder for a tender from the Indian Railways involving testing and inspection of rails.

The Railway Ministry public sector undertaking had bid Rs 65.4 crore for a tender floated by the Railway Board. The project pertains to inspection of 60,00,000 MT of rails and testing of the same under IRS T-12 2009 guidelines.

The company will be completing the contract within five years with the option of a one-year extension. RITES will be looking to inspect 12,00,000 MT of rails each year to complete the contract on time.

RITES recently announced to sign MoU with Ministry of Power

RITES recently announced that it would be signing a Memorandum of Understanding (MoU) with the Ministry of Power’s hydropower company NHPC Limited. The two will be working together on consultancy services for new rail connectivity, logistics and allied infrastructure, including Rapid Loading Systems (RLS/SILO) and conveyor systems for NHPC's 2880-MW Dibang Multipurpose Project (MPP) in Arunachal Pradesh.

The company in its quarterly financial earnings for the quarter ending in June 2023, reported its revenue at Rs 544.35 crore, which had declined over the previous quarter and also over the revenue reported in the corresponding quarter in the previous fiscal year. The company’s PAT and earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 108.01 core and Rs 145.34 crore respectively. Both PAT and EBITDA dropped year-on-year and sequentially.

The company’s shares have gained over 4 per cent over the past week. Over the past year long period, the Railway PSU stock has managed to give returns of nearly 70 per cent.

Shares of RITES were trading at Rs 472.70 apiece, down 0.22 per cent, on BSE at 1:04 PM.