 "Rites shares gain on MoU with Eastern Railway's largest shed facility")
Rites share price rises: Shares of Rites surged 3.4 per cent at Rs 697 per share on the BSE in early trades on Wednesday. The share price surge followed the company’s partnership announcement with Eastern Railway’s Andal Diesel Shed. Andal Diesel Shed is the largest shed in Eastern Railway with a holding of 138 locomotives.
The company signed a Memorandum of Understanding (MoU) with Andal Diesel Shed 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,” the company said in an exchange filing.
Rites, formerly known as Rail India Technical and Economic Service Limited, is a Navratna central public sector undertaking under India's Ministry of Railways.
The company is engaged in the transport consultancy and engineering sector, offering a diversified range of services in railways, highways, urban engineering (including metros), sustainability, airports, and ports.
Rites reported a slight decline of 1.59 per cent in its consolidated net profit, amounting to Rs 136.67 crore for the March quarter of fiscal year 2023-24. This compares to a profit of Rs 138.89 crore recorded in the year-ago period.
Additionally, the company's total income also decreased from Rs 705.63 crore to Rs 667.68 crore in the January-March period of FY24 compared to the same period a year ago.
At 11:51 AM; the stock of the company gave up most of its intraday gain and was trading 1.22 per cent higher at Rs 682.95 per share on the BSE. By comparison the BSE Sensex climbed up by 0.58 per cent.