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

Shares of RITES traded on BSE on Tuesday at Rs. 235 rose as much as 9% to their intra-day high after the company announced that it has received an order from Volantis Asset Finance, South Africa for the supply and commissioning of 4000 HP cap gauge diesel electric locomotives worth $36 million.

The company said that implementation will take 20 months from the date of procurement. He said the contract agreement would be signed after due diligence by both parties. After the execution of the contract the order will be added to the order book of RITES.

On July 1, RITES announced that it has received from Babasaheb Bhimrao Ambedkar University (BBAU) Rs. 175.41 crore project management consultancy (PMC) contract, the second order of the month.

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

RITES said the order has been placed by the local entity and is to be implemented within a period of 30 months from the date of signing the contract or till completion of the assigned work, whichever is later.

RITES and Concor MoU

Last month, RITES signed a Memorandum of Understanding (MoU) with Container Corporation of India Limited (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 facilities.

Read more: Ambedkar University Rs. RITES share rockets 16% on 175 crore consultancy order

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

RITES share price performance

Shares of RITES have fallen 4% in the last six months but are up 15% in the last month. On a one-year basis, the stock is down 14%, while it has fallen nearly 65% ​​over the past five years.

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