November 25, 2024
New Delhi, India
RITES Shares
RITES Ltd witnessed a 13% jump in share price on Monday after the Northeast Frontier Railway raised its project estimates for railway electrification in the LMG-BPB section of Lumding division. The revised estimate now stands at ₹531.77 crore, up from the previous ₹288.44 crore, marking an 84% increase.
The stock opened at ₹288.05 per share on the BSE, hitting an intraday high of ₹310 and a low of ₹286.30, reflecting strong investor confidence in the company’s growth prospects.
Impact on Order Book
The updated project estimates are expected to boost RITES’ order book, which stood at ₹2,000 crore in the first half of FY25. The company’s robust pipeline includes:
- Over 90 orders in Q2 FY25 valued at ₹729 crore.
- ₹650 crore worth of new orders in Q3 FY25 so far.
Recent Contract Wins
RITES has also secured key contracts, including:
- ₹36 crore from Delhi Metro Rail Corporation for train retrofit work.
- ₹59.13 crore from UP State Bridge Corporation for project supervision.
Additionally, RITES signed MoUs with SAIL-Bokaro Steel Plant for railway infrastructure and Etihad Rail to enhance UAE infrastructure.
Financial Performance
Despite positive market sentiment, RITES faced challenges in Q2 FY25:
- Net Profit fell 25% YoY to ₹82.5 crore.
- Revenue dropped by 7.1% to ₹541 crore.
However, with an order book of ₹6,581 crore as of September 30, 2024, the company remains optimistic about future growth.
The surge in share price underscores investor confidence in RITES’ ability to adapt to increased project demands and expand its role in railway and infrastructure development.
Latest Q2 Results
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