RITES bags order worth Rs 475 cr

RITES on Monday (21 September) said it secured a contract for railway electrification works on competition basis amounting to Rs 474.92 crore.

A memorandum of understanding will be executed between RITES and the concerned Railway in this regard in due course, the company said in a statement during market hours today, 21 September 2020.

This turnkey contract majorly covers sections of Mavli-B.Sadri for 82 RKM, Udaipur City Himmatnagar for 210 RKM, Bhatinda Firozpur for 81 RKM and Gulbarga Bidar for 110 RKM of NWR, NR and SCR respectively.

On Friday, 18 September 2020, RITES said its board of directors has approved buyback of 96,98,113 equity shares at Rs 265 per share, translating into the total buy back amount not exceeding Rs 257 crore. The board fixed 30 September 2020 as record date for the purpose of ascertaining the eligibility of shareholders for the buyback.

RITES reported a 36.3% drop in consolidated net profit to Rs 64.99 crore in Q1 June 2020 as against Rs 102.08 crore in Q1 June 2019. Net sales dropped 37.6% to Rs 335.47 crore in Q1 June 2020 over Q1 June 2019.

Shares of RITES was down 1.10% to Rs 252.45, tracking broader market correction. It has jumped 32.17% from its 52-week low of Rs 191 hit on 21 September 2019.

RITES is a Miniratna (Category - I) Schedule 'A' Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 30 June 2020, the Government of India held 72.02% stake in the company.

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