RITES, DVC join hands for innovation in rail infra works; stock rises 3%

RITES stock price soar: Shares of RITES soared as much as 2.93 per cent to hit an intraday high of Rs 726 per share, on Tuesday.

The rise in share price came after the company announced that it has joined hands with  Damodar Valley Corporation (DVC), for innovation in railway infrastructure works.

In an exchange filing, the company said, “RITES Ltd., a prime transport infrastructure consultancy, today signed an MoU with Damodar Valley Corporation (DVC), a statutory body under the Ministry of Power, to collaborate for the comprehensive maintenance and operational management of railway sidings, signalling and telecommunication (S&T) systems, and 25KV overhead electrification (OHE) isolators across DVC’s private railway network in West Bengal and Jharkhand.”

Furthermore, the maintenance work entrusted to the company will include the AMC for railway sidings, O&M of S&T systems, and operation of 25KV OHE isolators, it added.

Last week, RITES signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. (DMRC) for collaboration in comprehensive operations and management projects of metro railway systems, including rolling stock, depot management, station management, maintenance of railway infrastructure, etc. in India and abroad.

RITES Limited is a Navratna Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. 

The company has an experience spanning 50 years and undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and the Middle East region.  

Financial performance

In the March quarter (Q4FY24), RITES recorded a slight decrease in net profit, declining 1.6 per cent to Rs 136.7 crore compared to Rs 138.9 crore in the corresponding period of the previous year (Q4FY23). 

Revenue for the quarter also dropped 6.3 per cent to Rs 643.2 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) slipped a little over 8 per cent year-on-year (Y-o-Y) to Rs 176 crore. 

The Ebitda margin, meanwhile, squeezed 50 basis points (bps) to 27.4 per cent from 27.9 per cent in the same period last year.

RITES announced a dividend of Rs 5 per equity share, each with a face value of Rs 10.

The market capitalisation of RITES is Rs 17,153.95 crore, according to Bombay Stock Exchange (BSE).

The 52-week high of the stock is Rs 826.15 while its 52-week low is Rs 365 per share. 

At 10:34 AM, RITES shares were trading 1.19 per cent higher at Rs 713.70 per share. In comparison, BSE Sensex was trading 0.32 per cent higher at 77,237.67 levels.