Shares of RITES Ltd. dropped by 2% after reaching a day’s high of Rs 349.90 on 1st October, following the company’s announcement that it received a letter of award for the supply, commissioning, and one-year onsite warranty of an overhaul for an in-service Cape Gauge 3100 HP diesel-electric locomotive. The order was received from Tsiko Africa Logistics (Pty) Limited.

The total consideration for the order is approximately $4.28 million (about Rs 35.87 crore), and it must be executed within six months, including a one-year warranty, as the company informed the bourses.

In September, the company was the lowest bidder for a tender issued by the Uttar Pradesh State Bridge Corporation Limited, with a bid value of around Rs 60.03 crore, excluding taxes.

As part of the deal, they will provide consultancy services for the construction of civil works, focusing on supervision, monitoring, quality control, and work zone safety.

This order involves the construction of bridges, rail over and under bridges, flyovers, and elevated roads, including their approaches. The state-run company will provide services for various projects in Uttar Pradesh.

Regarding the company’s projections for the year, Rahul Mithal, the Chairman and MD of RITES, stated that despite increasing competition, they expect to maintain a margin of around 22%.

At 12:25 PM, the shares of RITES were trading 2.16% lower at Rs 337.90 on NSE.

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