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The Bhilai Steel Plant, owned by SAIL, has awarded RITES the task of repairing 43 units of WDS6 locomotives under the “R3Y/R6Y Repair of WDS6 Locomotives” project. The contract, valued at ₹69.78 crore (excluding GST), will span three years and involve extensive repairs and maintenance of these integral locomotives.
The announcement by RITES comes on the heels of another major project order win.
On January 1, 2024, the company disclosed that it had clinched a $9.7 million order for upgrading the Palmyra to Moleson Creek Highway in Guyana, South America.
The project, which includes a 36-month pre-construction and construction phase, followed by a 24-month post-construction period, is expected to be completed in five years.
RITES, established in 1974, specialises in multidisciplinary engineering and consultancy services.
The company was granted Navratna status in October 2023, a significant milestone that enhanced its operational autonomy and financial capabilities.
With this status, RITES can independently invest up to ₹1,000 crore without central government approval, enabling the firm to undertake larger and more complex projects.
Despite these order wins, RITES’ stock performance has seen volatility in recent times.
On January 2, 2024, its shares closed 0.78% lower at ₹292.90 on the NSE. Over the last three months, the stock has corrected by over 12%, although it has delivered a one-year return of nearly 17%.
The company’s Q2 FY24 financial performance revealed a net profit of ₹82.5 crore, marking a 25% decline compared to ₹110.2 crore in the same period last year. Revenue for the quarter also dropped by 7.1% to ₹541 crore, down from ₹582.4 crore year-on-year.
