RITES Soars 5% on Securing ₹414 Crore IIT Bhubaneswar Campus Project

26 Feb 2024 , 03:19 PM

Following the company’s appointment by IIT Bhubaneswar as the project management consultant for the establishment of a permanent campus in Odisha, RITES shares saw a 5% increase in trading on February 26.

As of 3:20 p.m., the trading price of the RITES stock on the NSE was ₹775.45, up 2.09% from the previous session. 

A formal letter of intent to employ RITES as a project management consultant (PMC) for the infrastructure construction of an IIT Bhubaneswar permanent campus in Odisha was received. 

The project is expected to cost approximately ₹414 Crore, excluding GST, and includes PMC fees.

Rahul Mithal, the company’s CMDsaid in an interview on February 8, 2024, that RITES will actively bid for export and consulting orders in the remaining months of 2023–24 and in 2024–25 to make up for the decline in income from the Indian Railways’ quality assurance/inspection division. 

In order to compensate for the decline in its sales and net profit in 2023–24 brought on by the railroads lowering the rates for quality assurance/inspection bids since the beginning of the year, the company acquired more than 100 contracts totaling ₹612 Crore in the quarter that concluded on December 31, 2023.

In contrast to the benchmark Nifty 50’s 14% gain over the same period, the RITES stock has increased by more than 65% over the last six months.

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