Rites jumps after bagging orders worth Rs 46 cr

Rites rose 3.22% to Rs 252.90 after the company bagged four project management consultancy orders worth approximately Rs 46 crore.

In a BSE filing made during market hours today, the company said that it had secured an order for project management consultancy for construction of 296 Km Bundelkhand Expressway in Uttar Pradesh for consultancy fee of Rs 24.84 crore.

It also secured an order for project management consultancy for construction of 90 Km Gorakhpur Link Expressway in Uttar Pradesh for consultancy fee of Rs 10.34 crore.

Further, it bagged an order for project management consultancy for a road over bridge at Nigahi near Singrauli (UP) from Northern Coalfeilds for an approximate fee of Rs 3.75 crore.

The firm also secured an order for detailed design work from Madhya Pradesh Metro Rail Corporation for Indore and Bhopal metro depots at a fee of Rs 7 crore.

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.

The company 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.

On 18 September 2020, the company's board approved a proposal to buyback 96,98,113 equity shares (3.88% equity) at Rs 265 per share, for an aggregate 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.

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