RITES share falls 3.5% on contract termination by UP State Bridge Corp

RITES share price: RITES shares were under pressure on Wednesday, April 2, 2025, as the stock dropped as much as 3.49 per cent to hit an intraday low of 222.10 per share.

 

The drop in RITES share price came after the company revealed that its contract with UP State Bridge Corporation has been terminated. 

 

Under the terms of the earlier order, RITES was expected to offer consultancy services for Construction Supervision of Civil Works (CSC) for supervision, monitoring, quality control, and work zone safety for construction of bridges, rail over/under bridges, flyovers and elevated roads including approaches in several districts of Uttar Pradesh.

 

In an exchange filing, RITES said, “We would like to inform you that pursuant to the Foreclosure Agreement between RITES and UPSBCL, it has mutually agreed for foreclosure of the Principal Agreement for the aforesaid work.”

 

RITES explained that due to interpretation issues of the certain provisions of the agreement between RITES and UPSBCL, it was difficult to continue with the execution of the Agreement under the existing terms, hence it was mutually agreed to foreclose the agreement. 

 

“No impact due to foreclosure as the execution of the work was not commenced,” RITES said. 

 

RITES Q3 results

 

RITES posted 12.5 per cent drop in consolidated profit at Rs 128.78 crore for the quarter ended December 31, 2023. The company had posted a profit of Rs 147.18 crore for the year-ago period, RITES said in a filing to BSE.

 

Income dropped to Rs 699.85 crore from Rs 703.38 crore in the year-ago period, the filing said. READ MORE

 

About RITES

 

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.  

 

RITES share’s 52-week high is Rs 413.08 while its 52-week low is Rs 246.73 per share. 

 

At 10:10 AM, the RITES shares were trading 2.43 per cent lower at Rs 224.55 per share. In comparison, BSE Sensex was trading 0.49 per cent higher at 76,399.41 levels.