RITES Wins ₹36.36 Crore DMRC Contract for RS-1 Train Retrofit

6 Nov 2024 , 09:04 AM

RITES Ltd announced on November 5 that it received a ₹36.36 Crore contract from Delhi Metro Rail Corporation Ltd (DMRC) for retrofit work on RS-1 trains.

At the time of writing on November 6, 2024 shares of RITES Ltd is trading at ₹294.55 which is a 1.32% gain than the previous close. RITES Ltd stock has gained a total of 31% in the last one year, and 17% gain since the beginning of the year.

The contract was awarded after RITES emerged as the lowest bidder in a DMRC tender issued on September 26; the project completion timeline is three years from the issuance of the letter of acceptance (LOA).

Scope of work includes upgrades and modifications to improve performance and extend the lifespan of DMRC’s RS-1 trains. The contract is strictly with DMRC as a domestic client and involves no related party transactions.

In September, a RITES-led consortium was awarded another ₹87.58 Crore DMRC tender, with RITES’ share at ₹42.91 Crore.

On October 28, RITES emerged as the lowest bidder in a ₹59.13 Crore tender from the UP State Bridge Corporation Ltd, expected to be completed within three years.

Financial performance in the June quarter showed a 24.4% drop in net profit to ₹90.4 Crore and a 10.8% decline in revenue to ₹486 Crore. EBITDA fell 34.5% to ₹105.8 Crore, with EBITDA margins narrowing by 800 basis points from 29.8% to 21.8% year-over-year.