Rites rallies on inking MoU with Etihad Rail

Rites jumped 6.45% to Rs 320 after the company announced that it has signed a Memorandum of Understanding (MoU) with Etihad Rail for developing railways and related infrastructure services works in UAE and wider region.

The partnership aims at leveraging strengths of both the entities to explore collaborative opportunities for supply/leasing of rolling stock, consultancy and project management for railway projects, services such repairing of rolling stock and operation & maintenance of railway infrastructure to ensure more efficient and modernised rail services in the UAE and across the region.

Another key initiative, under the terms of the MoU, is the capacity analysis of rail corridors in the UAE and nearby geographies, thus aiming to help improving efficiency, streamlining logistics and enhancing trade routes.

Rahul Mithal, chairman & managing director of RITES said, This strategic collaboration with Etihad Rail underscores our strengths and commitment to operational excellence & innovation, while contributing to sustainable infrastructure development. It represents a significant advancement in our strategic initiative of RITES Videsh, aimed at expanding our global services. Together, the entities are laying the foundation to significantly contribute to enhanced connectivity, setting new benchmarks of excellence in the industry.

Shadi Malak, CEO of Etihad Rail said, This strategic partnership with RITES marks a significant step towards our vision of enhancing connectivity and transforming the transportation landscape in the UAE. Guided by the vision and support of our wise leadership, we will leverage our combined expertise to modernize and enhance the efficiency of the UAE National Railway Network, sharing and exchanging knowledge and solutions to benefit this growing sector. Through this collaboration, we will yield forward-thinking, innovative solutions that benefit both our freight services and future passenger services, contributing to the overall infrastructure and operational excellence of the region.

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 30 September 2024, the Government of India held 72.20% stake in the company.

The companys consolidated net profit declined 24.37% to Rs 90.44 crore in Q1 FY25 as against Rs 119.58 crore recorded in Q1 FY24. Revenue from operations declined 10.76% to Rs 485.76 crore in the quarter ended 30 June 2024 from Rs 544.35 crore posted in Q1 FY24.

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