RITES gains 6% on signing MoU with Delhi Metro; share soars 79% in 1 yr.
RITES' share price surged 6% following the signing of a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. (DMRC) for comprehensive operations and management projects of Metro Railway Systems.
On Friday, RITES' share price rose by 6 percent to Rs 721 per share on the BSE after the company signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation Ltd. (DMRC) for operations and management projects related to Metro Railway Systems. According to RITES' exchange filing, the MoU involves collaboration on comprehensive operations and management projects, including Rolling Stock, Depot Management, Station Management, and maintenance of Railway Infrastructure, both within India and internationally. The MoU aims to streamline the process of jointly exploring, identifying, securing, and executing consultancy assignments for Metro/LRT/Mass Rapid Transit Systems. RITES and DMRC will leverage each other's strengths to enhance business capabilities.
As of 1:00 PM, RITES' shares were up 4 percent at Rs 707.05, compared to a 0.16 percent gain in the benchmark BSE Sensex. Earlier this year, on February 27, the stock reached a record high of Rs 826 per share, while it had an all-time low of Rs 152 on July 2, 2018. Over the past year, RITES' share price has increased by 79.2 percent, outpacing the benchmark indices' rise of around 25 percent.
RITES is a Navratna public sector enterprise (PSE) and a leading player in the transport consultancy and engineering sector in India, with diversified services and geographical reach. Additionally, on June 11, RITES signed an MoU with Eastern Railway's Andal Diesel Shed in Asansol Division, West Bengal. This partnership aims to establish a framework for major schedule repair and maintenance of Diesel-Electric Locomotives owned by RITES and other clients at the Andal Diesel Shed facility. Under this collaboration, RITES will identify business opportunities for higher schedule repairs, while the Andal Diesel Shed will handle the maintenance work.
Financially, RITES reported a consolidated net profit of Rs 136.67 crore for the January-March quarter, down 1.6 percent year-on-year due to weak revenues. The company's total income fell to Rs 667.68 crore from Rs 705.63 crore in the same period the previous year. The board has recommended a final dividend of Rs 5 per equity share.
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