RITES’s stock increased by about 2% on the PSU’s announcement that it had secured a sizable order from Delhi Metro Rail Corporation Limited (DMRC) for RS-1 train upgrade work.

After winning the lowest bidder in a DMRC tender on 26 September, RITES was given the contract through a letter of acceptance (LOA) that was received on 5 November.

After the LOA is issued, the contract, which is worth Rs 36.36 crore (without GST), should be finished in three years. Enhancing the longevity and performance of DMRC’s RS-1 trains is the main goal of the refit project.

Since DMRC is a domestic client, this award is fully implemented with no linked-party transactions.

In September, a DMRC tender worth Rs 87.58 crore had a consortium led by RITES as the lowest bidder. A 49% stake in this tender, or about Rs 42.91 crore (GST included), is held by RITES.

RITES also said on 28 October that it had won the lowest price in a different tender that UP State Bridge Corporation Ltd. had put out. With a total estimated cost of Rs 59.13 crore (GST excluded), this project is also expected to be finished in three years.

RITES’s net profit for the June quarter fell 24.4% to Rs 90.4 crore from Rs 119.6 crore in the same quarter the previous year. Revenue dropped from Rs 544.3 crore to Rs 486 crore, a 10.8% decline from the previous year.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the company dropped 34.5% to Rs 105.8 crore, and margins narrowed by 800 basis points to 21.8% from 29.8% the previous year.

At 3:30 pm, the shares of RITES closed 0.27% higher at Rs 295.50 on NSE.

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