RITES shares jump nearly 3% after securing Rs 454-crore order from Karnataka Mining Corporation
RITES shares surged nearly 3% after securing a Rs 454-crore contract from Karnataka Mining Corporation for railway infrastructure projects, boosting investor confidence despite a dip in Q1FY25 earnings.
RITES Limited saw its stock surge nearly 3 per cent on Wednesday after the company secured a major contract worth Rs 454 crore from the Karnataka Mining Environment Restoration Corporation (KMERC).
This contract, focused on constructing railway infrastructure in Ballari district, has been a key driver behind the stock’s rise, reflecting investor confidence in the company’s expanding project portfolio.
Initially awarded on a project management consultancy (PMC) basis, the new order has now been converted into a turnkey assignment, signalling RITES’ growing role in large-scale infrastructure development. The project is expected to be completed within 30 months.
This news comes at a crucial time for RITES, which recently reported a 24.4% decline in net profit for Q1FY25.
Despite these challenges, the company’s stock has gained momentum, bolstered by its continued success in securing high-value contracts and maintaining a strong presence in the transport consultancy sector.
By 10:22 AM, RITES shares were trading at Rs 294.65, up 0.84%. The company, with a market cap of Rs 14,088.90 crore, has a 52-week high of Rs 413.08.
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