Rites rallies after Ntokoto Rail Holdings contract value increases to $10.80 mln

Rites advanced 3.47% to Rs. 211.50 after the company announced that it had received an addendum to its contract agreement with Ntokoto Rail Holdings Pty, awarding the company additional work for the supply of new Cape Gauge Bogies.

The revised order includes the supply and commissioning of overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives, which will be fitted with new Cape Gauge Bogies, traction motors, control systems and air brakes. The overhaul will take place at a nominated facility, with one-year on-site warranty support.

The value of the order has been revised from $5.40 million (CIF) to $10.80 million (CIF). The order is expected to be executed within six months from the receipt of advance payment for the additional work.

According to an exchange filing dated 7 October 2024, the original order from Ntokoto Rail Holdings Pty, valued at $5.40 million (CIF), has now been increased to $10.80 million (CIF).

The official announcement was made on 17 March 2025, after market hours.

RITES, a Miniratna (Category-I) Schedule 'A' public sector enterprise, is a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. As of 31st December 2024, the Government of India held a 72.20% stake in the company.

The companys consolidated net profit declined 16.7% to Rs 100.09 crore in Q3 FY25 as compared with Rs 120.14 crore in Q3 FY24. Net sales declined 15.7% to Rs 575.76 crore during the quarter.

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