PSU stock jumps 4% after winning ₹298 Cr order from Ministry of External Affairs 

Shares of a Navratna PSU involved in transport consultancy and engineering sector rose by 4 percent on Monday after the company secured a Rs.298 crore order from the Ministry of External Affairs. 

Price Variation 

During Monday’s trading session, the share price of Rites Ltd reached an intra-day high of Rs.308.75 per share, rising 4.2 percent from its previous close of Rs.296.45 apiece. The shares have retreated since then and currently trading at Rs.302.90 per share. 

What Happened 

The Ministry of External Affairs, Government of India, has awarded a contract to RITES Ltd for providing Project Implementation Services for the construction of an Integrated Check Post (ICP). 

This order, valued at Rs. 297.67 crore, covers the construction cost along with the Project Management Consultancy (PMC) fee, excluding GST. The project is to be completed within 59 months, which includes the Defect Liability Period. 

The contract is awarded by a domestic entity, and the scope of work primarily involves project implementation services for the ICP construction. 

Orderbook 

As of September 30, 2024, RITES Ltd’s order book stands at Rs.6,581 crore, with the following breakdown: Rs.2,542 crore (38.6 percent) from Consultancy, Rs.2,506 crore (38.0 percent) from Turnkey projects, Rs.1,240 crore (18.8 percent) from Exports, Rs.173 crore (2.6 percent) from REMC Ltd, and Rs.120 crore (1.8 percent) from Lease agreements. 

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Recent Developments 

Rites Ltd has recently launched VISTAR, an AI-powered solution for advanced rail inspection. The company also signed a Memorandum of Understanding (MoU) with Etihad Rail, as well as with NBCC and HUDCO to offer comprehensive consultancy and project management services. 

Additionally, an MoU was signed with NHAI to provide consultancy for highways, bridges, and tunnels. 

Financials 

According to its recent financial updates, Rites Ltd reported remarkable consolidated revenue of Rs.541 crores in Q2 FY25, marking a 7 percent decrease from Rs.582 crores in Q2 FY24. In addition, the company saw its net profit fall 26 percent to Rs.82 crores, compared to Rs.110 crores in the same period last year.

About the Company 

RITES Limited (Rail India Technical and Economic Services) is a leading public sector enterprise in India, functioning under the Ministry of Railways. As a Navratna company, RITES plays a crucial role in the Indian economy. 

The company specializes in offering consultancy and engineering services, with a primary focus on transportation infrastructure across various sectors. 

Written by – Siddesh S Raskar 

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