RITES bags locomotive repair contract from SAIL

3 Jan 2025 , 09:44 AM

RITES Ltd, a Navratna Central Public Sector Enterprise under the Ministry of Railways, has received a large contract from the Steel Authority of India Limited (SAIL), according to an exchange filing dated Thursday, January 2, 2024.

SAIL’s Bhilai Steel Plant has contracted RITES to repair 43 WDS6 locomotives as part of the “R3Y/R6Y Repair of WDS6 Locomotives” project. The deal worth ₹69.78 Crore (excluding GST) covers three years of intensive repairs and maintenance for these locomotives. 

RITES has announced a $9.7 million order to upgrade the Palmyra to Moleson Creek Highway in Guyana, South America, following another large project win.

The project, which includes a 36-month pre-construction and building phase, as well as a 24-month post-construction period, is projected to be completed within five years.

RITES, founded in 1974, focuses on multidisciplinary engineering and consulting services.

The company received Navratna status in October 2023, a key milestone that increased its operational autonomy and financial capability.

With this designation, RITES can invest up to ₹1,000 Crore without central government permission, allowing the corporation to embark on more difficult projects.

Despite these order wins, RITES’ stock performance has been volatile in recent times.

In Q2 FY24, the company’s net profit was ₹82.5 Crore, down 25% from ₹110.2 Crore the previous year. The revenue for the quarter decreased by 7.1% to ₹541 Crore, compared to ₹582.4 Crore last year.

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