RITES Shares Rally 9% In Early Trade On $36 Million South Africa Locomotive Contract

Shares of RITES climbed as much as 9% to an intraday high of ₹235 on the Bombay Stock Exchange (BSE) on Tuesday after the state-run engineering and consultancy company announced a fresh export order from South Africa. At 12:41 pm, RITES shares were up 10.60% on the BSE, trading at ₹238.85 a piece.

Despite Tuesday's rally, RITES shares have delivered mixed returns across different time periods. The stock has gained around 15% over the past month.

However, it remains 4% lower over the last six months. On a one-year basis, the stock has declined 14%, while over the past five years, RITES shares have fallen about 65%.

About The Order

The company said it received an order from Volantis Asset Finance, South Africa, for the supply and commissioning of 4,000 HP Cape Gauge diesel electric locomotives. The contract is valued at $36 million.

RITES said the project will be executed within 20 months from the date of receipt of the order. The company added that the formal agreement will be signed after due diligence by both parties. The order will be added to its order book once the agreement is executed. The overseas order comes within days of another project win, adding to the company's order pipeline.

Second Order In July

On 1 July, RITES said it secured a project management consultancy (PMC) contract worth ₹175.41 crore from Babasaheb Bhimrao Ambedkar University (BBAU).

The contract covers planning, design and development of infrastructure facilities at the university campus, along with related works. It has been awarded on a cost-plus PMC fee basis. The domestic contract will be executed over 30 months from the date of signing the agreement or until completion of the assigned work, whichever is later.

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Partnership With CONCOR

Last month, RITES also signed a memorandum of understanding (MoU) with Container Corporation of India Ltd. (CONCOR), a Navratna public sector enterprise under the Ministry of Railways.

Under the agreement, RITES will provide end-to-end project management consultancy services for the development and modernisation of CONCOR's terminals and other facilities. The company said its role will cover the entire project cycle, including planning, design, execution and supervision through to commissioning.