Shares of RITES surged nearly 5 percent in early trade on December 6 after the company secured a significant project from the Indian Institute of Management (IIM) Raipur. The order, valued at Rs 148.25 crore (excluding GST), involves RITES serving as the Project Management Consultant (PMC) for the development of Phase II of the institute's campus in Chhattisgarh.
The scope of the project includes execution, supervision, monitoring, and development, to be completed on a cost-plus basis within a timeline of 23 months.
By 9:20 AM, the stock had climbed 4 percent to Rs 299. So far this year, RITES has delivered returns of over 18 percent, outperforming the Nifty 50's 13 percent gain during the same period.
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Established in 1974, RITES is a public sector enterprise and engaged in transport consultancy and engineering, known for its diversified services and extensive geographical reach. It serves as the exclusive export arm of Indian Railways for rolling stock overseas, except in Thailand, Malaysia, and Indonesia.
The state-run company posted lower results for the September quarter across all key parameters compared to the same period last year. Net profit declined by 25 percent to Rs 82.5 crore, down from Rs 110.2 crore. Revenue also dropped 7.1 percent year-on-year to Rs 541 crore, compared to Rs 582.4 crore in the previous year.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) fell 23 percent year-on-year to Rs 106.4 crore, down from Rs 138 crore, while the EBITDA margin narrowed to 19.7 percent from 23.6 percent last year.
Despite the dip in performance, the company secured over 90 orders in Q2, achieving an impressive milestone of one order per day. RITES remains optimistic about sustaining this momentum throughout the year.
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