Rites Ltd dips 2.17% despite bagging a major order from Container Corporation

The company secures new orders of Rs 364.56 crore.

Rites Ltd, engaged in various engineering & construction activities, has been trending on Dalal Street as it has received a major order for the operation and maintenance of 20 shunting locomotives for 10 years from Container Corporation of India for a sum of Rs 364.56 crore. Despite receiving such large order, the stock price declined by about 2.17% from its previous close of Rs 233.25.

The scrip opened at Rs 236.50 and made a day’s high of Rs 238.05 (+2.05%). However, at the end of the trading session, it closed at Rs 228.20.

The company was in the news the previous month as well as it had received consultancy and supervision work from the Ministry of Public Works, Guyana. The amount of this deal was USD 3,204,420 (approx Rs 25 crore).

Talking about its recent quarterly results, in Q4FY22, revenue grew by 21.71% YoY to Rs 766.02 crore from Rs 629.36 crore in Q4FY21. On a sequential basis, the top-line was down by 0.08%. PBIDT (Ex OI) was reported at Rs 204.47 crore, up by 14.31% compared to the year-ago period and the corresponding margin was reported at 26.69%, contracting by 173 basis points YoY. PAT was reported at Rs 141.26 crore, down by 0.7% from Rs 142.26 crore in the same quarter of the previous fiscal year. The PAT margin stood at 18.44% in Q4FY22 contracting from 22.6% in Q4FY21.

RITES Limited, a Government of India Enterprise was established in 1974, under the aegis of Indian Railways. It is a multi-disciplinary consultancy organization in the fields of transport, infrastructure and related technologies. In overseas projects, RITES actively pursues and develops cooperative links with local consultants/firms, as means of maximum utilisation of local resources and as an effective instrument for sharing its expertise.

The stock has a 52-week high of Rs 318 and a 52-week low of Rs 227.80.