Stock Market Today: Shares of RITES Limited, a government engineering consultancy firm, jumped over 4 per cent on Monday, December 9 after the company said it has won a significant international contract.
On Saturday, December 7, the company disclosed in an exchange filing that it emerged as the top bidder (H-1) for a $9.71 million engineering services project in Guyana.
Following this announcement, RITES share price rose as much as 4.4 per cent to ₹309.3. At 11.18 am, RITES stock was trading 2.79 per cent higher at ₹304.25 on the BSE. The company enjoys a market capitalisation of ₹14,622.37 crore. RITES stock price hit its 52-week high of ₹412.98 on February 27, 2024.
Order Detail
The project involves upgrading the Palmyra to Moleson Creek Highway, covering three lots. RITES secured the bid based on the Quality and Cost-Based Selection (QCBS) evaluation method. The contract spans 60 months, including a 36-month pre-construction and construction period, followed by a 24-month defect liability phase.
Awarded by Guyana’s Ministry of Public Works, the deal marks a strategic international win for RITES. The Letter of Acceptance is pending final approval by Guyanese authorities.
The company clarified that this is not a related party transaction and stated no promoter or group company holds interests in the awarding entity.
RITES financial performance
RITES reported a 25 per cent decline in net profit to ₹82.50 crore for the September 2024 quarter compared to ₹110.17 crore posted in the same period last year. Revenue from operations also decreased by 7 per cent, falling to ₹540.86 crore from ₹582.36 crore in the corresponding quarter of the previous fiscal.
Earnings per share (EPS) for Q2 FY25 dropped to ₹2.10, down from ₹1.52 in the same period last year. The Board of Directors announced a second interim dividend of ₹1.75 per share (face value ₹10 per share) for the financial year 2024-25 along with the financial results.
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