RITES jumps after subsidiary secures mandate from Indian Railways

RITES jumped 3.37% to Rs 246.85 after the company's arm secured mandate for 3,000 megawatts solar power plants' installation.

RITES' subsidiary, Railway Energy Management Company (REMCL), secured its largest mandate from Indian Railways for tendering, installation, supervision and managing power supply from three gigawatt (GW) solar energy plants, which will be set up on vacant Indian Railways' land. The project will be divided into three phases of one GW each and the entire installation is expected to be completed by 2022-23.

Besides Bid management fee in the beginning, REMCL would earn long term revenue through supply management from these installations which may amount to approximately Rs 20 crore per year to REMCL during life of the project.

Rites' consolidated net profit jumped 10.5% to Rs 150.04 crore on a 15.9% increase in net sales to Rs 619.82 crore in Q3 December 2019 over Q3 December 2018.

RITES is a public sector enterprise (PSE) and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 31 March 2020, the Government of India holds 72.02% stake in the company.

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