RITES gains 6% on signing MoU with Delhi Metro; share soars 79% in 1 yr

RITES Ltd has signed a MoU with DMRC for collaboration in comprehensive operations and management projects of Metro Railway Systems in India and abroad

RITES MoU with DMRC: RITES share price gained 6 per cent to Rs 721 apiece on the BSE on Friday after the railway firm signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. (DMRC) for operations and management projects of Metro Railway Systems.

According to the railway company's exchange filing, RITES Ltd has signed a MoU with 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.

The MoU, the filing said, aims at streamlining the process for jointly exploring, identifying, securing, and executing consultancy assignments for operations and management of Metro/LRT/Mass Rapid Transit Systems in India and abroad.

"As a part of this collaboration, DMRC and RITES will work together in tandem, leveraging each other's strengths and enhancing business capabilities," RITES said.

At 1:00 PM, RITES was up 4 per cent at Rs 707.05 per share as against a 0.16-per cent gain in the benchmark BSE Sensex.

Earlier this year, on February 27, the stock hit a record high of Rs 826 per share. It had hit an all-time low of Rs 152 on July 2, 2018. Over the past one year, RITES share price has gained 79.2 per cent as against around 25 per cent rise in the benchmark indices.

RITES is a Navratna public sector enterprise (PSE), and one of the leading players in the transport consultancy and engineering sector in India, having diversified services and geographical reach.

Meanwhile, on June 11, RITES signed a MoU with Eastern Railway's Andal Diesel Shed, Asansol Division, West Bengal, to set up a framework for collaboration on major schedule repair and maintenance of Diesel-Electric Locomotives owned by RITES and other clients at the Andal Diesel Shed facility.

The partnership aims at streamlining the repair and maintenance process for diesel locomotives.

"As part of this collaboration, RITES will secure or identify business opportunities for higher schedule repairs, while the Andal Diesel Shed will execute the maintenance work," RITES said.

Financially, RITES reported a consolidated net profit to Rs 136.67 crore In the January-March quarter, down 1.6 per cent year-on-year (Y-o-Y0 on account of weak revenues. The company's total income fell to Rs 667.68 crore in the quarter from Rs 705.63 crore in the same period a year ago.

The board recommended a final dividend of Rs 5 per equity share