RITES Shares Gain 2% on ₹69.78 Crore Order Win from SAIL

RITES Limited, a leading transport infrastructure consultancy and engineering company, saw its share price rise by 2.12% on January 3, 2025, following a major order win from the Steel Authority of India Limited (SAIL). The shares were trading at ₹299.10, up by ₹6.20, on the NSE in early trade. The company’s positive stock movement reflects investor confidence in its expanding project portfolio and strategic collaborations.  

Key Order Win from SAIL

RITES secured a ₹69.78 crore work order from SAIL’s Bhilai Steel Plant. The contract involves the repair of 43 WDS6 locomotives under the R3Y/R6Y Repair scheme over a three-year period. This strategic order highlights RITES’ expertise in providing engineering solutions to heavy industries and is expected to strengthen its foothold in the railway sector.  

Collaboration with IRFC

In another significant development, RITES’ subsidiary, REMC, signed a Memorandum of Understanding (MoU) with the Indian Railway Finance Corporation (IRFC). This partnership aims to explore financing options for power projects catering to Indian Railways.  

The MoU outlines collaborative opportunities in Transaction Advisory, Project Management services, and consultancy for financing power projects under the captive model, including thermal, nuclear, and renewable energy projects. These projects will be developed through joint ventures involving Indian Railways and other entities.  

Leveraging their combined expertise, REMC and IRFC plan to optimize project execution by utilizing complementary strengths. This partnership is expected to enhance the efficiency of power supply to railways while supporting India's renewable energy goals.  

International Expansion

RITES is also making strides internationally. The company recently received a Notification of Intention to Award from the Ministry of Public Works, Government of Guyana. The project, valued at $9.71 million, demonstrates RITES’ growing presence in global markets and its ability to secure high-value international contracts.  

Conclusion

RITES’ recent order wins and collaborations highlight its robust growth trajectory and strategic positioning in domestic and international markets. The ₹69.78 crore contract with SAIL reinforces its expertise in railway infrastructure, while the partnership with IRFC showcases its commitment to advancing sustainable energy solutions.

Additionally, the international project win in Guyana underscores the company's expanding global footprint. As RITES continues to strengthen its portfolio with significant domestic and international contracts, it is well-poised for sustained growth, making it an attractive stock for investors seeking long-term value.