RITES shares soar 9% after bagging a $36 million locomotive supply order from South Africa

Synopsis

RITES shares rallied after securing a $36 million locomotive supply contract. The company also received a Rs 175.41 crore consultancy project from BBAU. These new orders will be added to RITES' growing order book. Execution of these contracts is scheduled over the next 20 to 30 months. RITES recently signed an MoU with CONCOR for terminal development services.

Shares of RITES rallied as much as 9% to their day’s high of Rs 235 on the BSE on Tuesday after the company announced it received an order for the Supply and Commissioning of 4000 HP Cape Gauge Diesel Electric Locomotives from Volantis Asset Finance, South Africa, valued at $36 million.

The company stated that execution will take 20 months from the date of receipt. It said the contract agreement will be signed after due diligence by both parties. The order will be added to RITES' order book following execution of the agreement.

On July 1, RITES announced it had secured a Rs 175.41 crore project management consultancy (PMC) contract from Babasaheb Bhimrao Ambedkar University (BBAU) for infrastructure development works on its campus, securing the second order of the month.

Also read: Railway Minister Ashwini Vaishnaw to launch Mumbai-Ahmedabad Bullet Train tunnel work

The contract involves the planning, design and development of infrastructure facilities, along with other related works at the university, on a cost-plus PMC fee basis. The total project cost is estimated at around Rs 175.41 crore, excluding GST, inclusive of RITES' fees.

RITES said the order has been awarded by a domestic entity and is scheduled to be executed over a period of 30 months from the date of signing the agreement or until completion of the assigned work, whichever is later.

RITES & Concor MoU

Last month, RITES signed a memorandum of understanding (MoU) with Container Corporation of India Ltd. (CONCOR), a Navratna public sector enterprise under the Ministry of Railways, to jointly provide project management consultancy (PMC) services for the development and upgradation of CONCOR's terminals and other establishments.

Read more: RITES shares rocket 16% on Rs 175 crore consultancy order from Ambedkar University

Under the agreement, RITES will offer end-to-end PMC services, covering projects from the concept stage through commissioning. The partnership will draw on RITES' multidisciplinary engineering and project management capabilities to support the planning, design, execution and supervision of infrastructure projects undertaken for CONCOR.

RITES share price performance

RITES shares have declined 4% over the past six months but gained 15% in the last month. On a one-year basis, the stock is down 14%, while it has fallen about 65% over the past five years.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

...moreless

...moreless